Free tool
Second-mortgage equity & LVR calculator
Enter your property value, what's owed on the first mortgage and what the business needs. See current LVR, combined LVR, your equity buffer and an indicative structure instantly, then choose an exit plan and compare pathways.
Your equity and LVR
Your result
Current LVR
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Combined LVR
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Equity buffer
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Indicative structure
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Indicative only, based on your figures and our planning bands. Not an offer or approval. Lenders use their own valuation and assessment.
Choose your exit plan
Every second mortgage needs a way out. Pick the one closest to your plan to see the evidence lenders look for and how the loan is usually structured around it.
Second mortgage vs refinance vs caveat
| Feature | Second mortgage | Refinance | Caveat loan |
|---|---|---|---|
| Your first loan | Stays as it is | Paid out and replaced | Stays as it is |
| Security | Registered mortgage, second in line | New first mortgage | Caveat on title |
| Speed | Days; same day possible for $20k–$250k | Usually weeks | Can be marginally faster |
| Typical term | Short to medium | Long | Very short |
| Paperwork | Equity and exit led; low doc possible | Full financials usually | Light |
| First-lender consent | Often needed | Discharge instead | Loan terms still matter |
| Cost drivers | Second ranking, LVR, term | Whole balance repriced, exit costs on old loan | Weaker security, short term |
| Best when | You need it soon, for months, and want to keep your first loan | Long-term need, time to spare, strong paperwork | Very short, urgent gap with a firm exit |
Take these numbers to a specialist
One person looks at your property, your first loan and your exit, then calls you with a structure and a total-cost estimate. No credit check when you first enquire, and your details aren't sent to a pile of lenders. Please enter the same figures you used here so we start from accurate numbers.
See if you qualify →No credit check to enquire
One specialist, not a lead auction
A real person reads every file
How this calculator works
A second mortgage is sized on combined LVR: every loan secured on the property, divided by its value. The calculator runs three formulas:
- Current LVR = (first mortgage balance + any redraw or unused limit) ÷ property value.
- Combined LVR = (first mortgage + redraw + the second mortgage you need) ÷ property value.
- Equity buffer = property value − (all of the above). It's the slice of value that stays yours and absorbs costs, interest and market movement.
It then compares your combined LVR with conservative planning bands and suggests an indicative structure: whether the request sits comfortably behind your existing loan, what it would take to bring a stretched request back into a workable range, and when a different pathway might suit. It also shows the largest amount you could request while staying inside the comfortable and workable bands.
What are the planning bands?
No lender publishes a single limit for second mortgages; each sets its own by property type, location, loan size and borrower. To give you a sensible starting point we use these bands:
| Band | Residential | Commercial |
|---|---|---|
| Comfortable | Up to 65% | Up to 55% |
| Workable | 65% – 75% | 55% – 65% |
| Stretch | 75% – 80% | 65% – 70% |
| Beyond most appetite | Over 80% | Over 70% |
Commercial bands are lower because commercial property generally takes longer to sell and has a narrower pool of buyers. A strong exit, a well-located property and a clean first loan can all support more; a remote or specialised property may support less. The detail is in how combined LVR is calculated.
Why doesn't it ask for an interest rate?
Because every loan is priced on the individual file, a rate typed into a calculator would be a guess dressed up as a number. What decides whether a second mortgage works is the equity, the structure and the exit. When it comes to cost, ask for the estimated total cost of finance in dollars over the term you expect. Our page on second mortgage costs lists every fee to include.
Illustrative example
A home valued at $1,000,000 has $450,000 owing and no redraw. The owner needs $150,000 to clear an ATO debt. Current LVR is 45%; combined LVR after the loan is 60%, leaving a $400,000 buffer. That's inside the comfortable residential band, so the indicative structure is a straightforward second mortgage behind the existing lender, with same-day funding possible when the valuation, title and signing line up. Choose "Refinance later" as the exit and the calculator shows the evidence and term that usually go with it. The figures are illustrative.
What the calculator can't tell you
It can't value your property, read your title or see your first loan's terms. Those three things decide the real answer. If your title has a caveat, your first loan restricts further mortgages or the lender's valuation comes in lower than your estimate, the result will change. Our guides to ordering a title search, first mortgagee consent and valuations show you how to check each one. When you're ready, send the figures to a specialist for a real-world view.
Calculator FAQs
How is combined LVR calculated?
Add the first mortgage (or its limit, if you can redraw) to the second mortgage you want, divide by the property value and multiply by 100. A $1,000,000 property with $450,000 owing and a $150,000 second mortgage has a combined LVR of 60%.
Where do the planning bands come from?
They're conservative bands we use to frame a first conversation, not any lender's policy. Residential: comfortable to 65%, workable to 75%, stretch to 80%. Commercial: comfortable to 55%, workable to 65%, stretch to 70%. Real limits vary by lender, property and file.
Why does the calculator ask about redraw?
If you can redraw on your first loan, that money would rank ahead of a second lender. Many second lenders therefore use the limit, or balance plus available redraw, when they calculate combined LVR.
Why is there no interest rate field?
Every second mortgage is priced on its own facts, so we don't publish or assume rates. The calculator works in LVR, equity and structure. A specialist gives you a total cost estimate in dollars once they've seen your file.
Is the result an approval?
No. It's an indicative guide based on your inputs. A lender relies on its own valuation, title search and assessment. It's a good way to see whether a conversation is worth having.
Does using the calculator affect my credit file?
No. Nothing you type here is sent anywhere. And if you then enquire, there's still no credit check at the enquiry stage.
Numbers look workable? Let's make them real
A specialist checks your figures against real lender appetite and calls you back. No credit check when you first enquire, and one person handles your file from start to finish.
No credit check to enquire
One specialist, not a lead auction
A real person reads every file