Second mortgage questions, answered plainly

A loan for business purposes secured by a mortgage that ranks behind an existing first mortgage on the same property. The first loan stays as it is; the second lender lends against the equity above it.

Loans range from $20,000 to $5,000,000. The practical limit is set by combined LVR: property value multiplied by a lender's ceiling for your property type, less what you owe on the first mortgage. Our calculator does the arithmetic.

Residential property (your home or an investment property) and commercial property such as warehouses, shops, offices and factories. Property held in a company or trust can usually be used too. Property held in a self-managed super fund generally can't.

Business purposes only: ATO debt, working capital, stock, equipment, bridging, growth, or paying out business debt. It can't be used for personal or household spending.

For property-secured amounts from $20,000 to $250,000, same-day funding is possible when valuation, title and signing line up. Up to $5,000,000 is possible within 24 to 48 hours.

Often. Many mortgage contracts restrict further mortgages without consent, and in some states the first lender controls the electronic title. Consent doesn't change your first loan.

Yes. The lender relies on its own valuation, which may be a desktop, kerbside or full valuation depending on the loan size and property.

Photo ID for every owner, your first mortgage statement, a rates notice, company or trust documents if relevant, and evidence of your exit. Full financials are needed less often than people expect.

No. There's no credit check when you first enquire. A credit check happens only once you decide to proceed.

Past credit issues are considered case by case. Equity, purpose and exit carry more weight. Arrears on your first mortgage are the most important issue to disclose.

Yes. ATO debt is considered case by case, and clearing it is one of the most common reasons owners use a second mortgage. The ATO can be paid directly at settlement.

Not always. Many second mortgages are assessed on equity and exit, with bank statements, BAS or an accountant's letter used instead of full returns.

We don't publish rates. Every loan is priced on its own facts: combined LVR, property type, loan size, term, credit history and exit. You'll get a total-cost estimate in dollars once we understand your file.

Typically establishment, lender legal fees, valuation, government registration fees and a discharge fee at the end. Ask for every fee in dollars before you commit.

From a planned exit: a property sale, a refinance, trading cash flow or a known incoming payment. Interest may be paid monthly, prepaid or capitalised depending on the structure.

It depends on the loan. Some have a minimum interest period or early repayment fee; others don't. We'll point this out before you sign.

No. One specialist handles your enquiry and approaches only the lender that suits your file. We don't sell or spray enquiries.

A real person who specialises in second mortgages reads your enquiry and calls you, usually within business hours.

Because the property value, first-loan balance and purpose decide the structure. Accurate answers mean the first option we discuss is one that will actually settle.