Second Mortgage

Yes — this is one of the most common and effective use cases for second mortgage private finance. Most banks will not refinance a borrower who carries active ATO debt because it creates a priority creditor risk. By using a second mortgage to clear the ATO debt first, you remove that obstacle and can approach your bank from a clean position. Borrowers in this situation often refinance back to mainstream lending within 6–12 months once their tax compliance is restored.

Not necessarily — and in many cases, the reason a bank says no is the exact reason a private lender can say yes. Banks assess borrowers primarily on income, credit score, and liability profile. Private lenders assess the security property and the exit strategy. If a bank declined you because of ATO debt, irregular income, a trust structure, or a previous credit event, those factors carry significantly less weight with a private lender.

As a general guide, you'll need enough equity in your property to keep the combined LVR across your first and second mortgage at or below 70% for residential and commercial. If your property has appreciated significantly since you took out your first mortgage, you may have more usable equity than you realise.

Secured Lending does not lend to individuals. We only lend to companies, family trusts, unit trusts, and SMSFs subject to compliance requirements.

To get a preliminary assessment, you need very little — a rough idea of your property value, your first mortgage balance, and what you need the funds for. To proceed to formal approval, you'll typically need: a copy of your current first mortgage statement, a recent rates notice or evidence of property ownership, identification documents, a statement of the loan purpose, and details of your proposed exit strategy.