At a glance
| Position | Second-ranking registered mortgage |
|---|---|
| Loan size | $20,000 to $5,000,000 |
| Existing loan | Stays in place, unchanged |
| Documents | ID, property and first-mortgage details |
| Funding | As little as 24 hours |
How second mortgage business loans work
Refinancing your home loan to release equity can take weeks and may mean giving up a good rate. A second mortgage sits behind your existing lender, leaving that loan untouched.
Second mortgages suit larger or slightly longer loans than a caveat, and they're a strong option for consolidating expensive business debts into one repayment.
Who it suits
- Owners with a low-rate first mortgage they want to keep
- Debt consolidation and ATO debt refinance
- Larger amounts with a 6–24 month horizon
- Businesses without current financials
How it works
- Check eligibility60 seconds online, with no credit score impact.
- Talk to a specialistWe confirm the amount, property and exit plan the same day.
- Get a written offerEvery cost set out clearly, often with just a desktop valuation.
- Sign and settleE-sign, we lodge the security, and funds land in as little as 24 hours.
What you'll need
- Photo ID for each borrower and guarantor
- Property address and who owns it
- What's owing on the property (if anything)
- The loan purpose and your exit plan
Not needed: No tax returns, financial statements, BAS or accountant letters.
A medical practice consolidating costly short-term debt
A Sydney dental practice owner had three unsecured online loans draining cash flow every day. We arranged a $380,000 second mortgage over her home, behind her existing low-rate loan, and paid out all three. Her daily repayments stopped and she now makes one monthly payment.
Where a second mortgage sits, and what it does to your existing loan
A second mortgage is registered on the title behind whatever is already there. Your existing lender stays first in line. Ours is second, which is the whole meaning of the name.
Nothing about your existing loan changes. Not the rate, not the term, not the balance, not the repayment, not the redraw. It is not renegotiated, it is not repriced and it is not paid out. This is the single biggest practical difference between a second mortgage and refinancing, and it is why owners with a loan written at a rate they could not get again today use one.
What the second position does change is our risk. If the property ever had to be sold, the first lender is paid in full before anything reaches us. That is why equity matters so much here, why these loans are written for short periods rather than decades, and why the exit — how the loan actually gets repaid — is the question we spend the most time on.
It is also why the amount available is set by combined LVR rather than by what you earn. How much can you borrow on a second mortgage? → works through the arithmetic with examples.
What do owners actually use a second mortgage for?
Second mortgages are not general-purpose business finance. They are used where property equity is the fastest asset to reach and the need has a defined end.
| Situation | Why a second mortgage suits it | Typical exit |
|---|---|---|
| ATO debt and garnishee notices | No financials required, and the debt itself is not a reason to decline | Refinance once the debt is cleared, or trading |
| Consolidating expensive short-term debt | One secured facility replaces several daily-repayment loans | Refinance, or repayment over the term |
| Buying a business or premises | Moves faster than the seller’s patience runs out | Bank finance once combined trading figures exist |
| Settlement shortfalls | A settlement date does not move and a second mortgage can be registered inside it | The settlement itself |
| Contract mobilisation | Plant, crew and materials funded before the first claim is paid | Contract revenue |
| Tax or compliance deadlines | A fixed date with a consequence for missing it | Receivables or a refinance |
The common thread is that something has a date. Where nothing has a date, a slower and cheaper facility is usually the better answer, and we will say so.
How is a second mortgage priced?
Per file, not from a rate card. Four things do most of the work: the equity behind your existing loan, the term and how strong the exit is, the property type and location, and how clean the title is.
We do not publish a headline rate. A ‘from’ rate quoted before anyone has seen your property, your equity and your exit is a marketing number rather than your number, and the gap between the two is where people get disappointed. You get the real figure, every cost itemised, in writing, before you commit to anything.
When you are comparing lenders, the useful questions are not about the advertised rate. Ask whether they fund the loan themselves or place it elsewhere. Ask for every cost in writing before you sign, including what it costs to discharge. And ask what happens if your exit runs a month late. The answers to those three separate lenders far more reliably than any rate ever will.
Second mortgages in detail
Each of these answers one question properly, for people who want the detail before they pick up the phone.
Frequently asked questions
Is a second mortgage slower than a caveat loan?
No. Outside Victoria we settle directly onto a registered second mortgage, which is one step rather than two and can fund in as little as 24 hours. In Victoria a caveat is lodged first so the loan can fund, and the mortgage is registered behind it.
Is a second mortgage cheaper than an unsecured business loan?
Usually, yes. Property security lowers the lender's risk, so second mortgages are generally priced below unsecured and merchant-style finance, especially for larger amounts.
Can I get a second mortgage with bad credit?
Yes. Equity and a clear exit plan matter more than your credit score.
Does it cost anything to apply?
No. There's no cost to apply or check your eligibility. All costs are set out in writing in your loan offer before you sign anything.
Will checking my eligibility affect my credit score?
No. Our 60-second eligibility check doesn't make a credit enquiry. A credit check is only done later, with your consent, if you decide to proceed.
