How second mortgage business loans help
A second mortgage business loan releases equity from property already owned without disturbing the loan already secured against it. HomeSec registers behind the existing lender, to a combined 80% of value on residential security or 70% on commercial, typically settling in 24 to 72 hours. The first mortgage rate, term and structure stay untouched, and there are no break costs.
The most common reason a business owner ends up paying more than they needed to is that they were offered a refinance when what they needed was a second mortgage.
The arithmetic that decides it
You need $300,000. You have a home worth $1,250,000 with $690,000 owing on a loan written when money was cheaper.
Refinance: you replace the existing $690,000 loan with a new $990,000 one. Every dollar of the original balance is now repriced at today’s rate, plus break costs if it was fixed, plus a full credit assessment that will want financial statements and a clean file.
Second mortgage: the existing loan is untouched. We register behind it and price only the $300,000 you actually need.
Refinancing to release $300,000 can cost you the rate on $990,000. That is the whole case, and it is arithmetic rather than opinion.
What “behind your bank” actually means
Your first mortgagee stays first. We register second, which means on a sale they are paid out before us. That ranking is set out in a priority deed, and your existing lender is generally asked to consent to it.
Most Australian banks and non-banks handle these routinely. It is also the single most common reason a second mortgage takes 72 hours rather than 24 — the consent is not ours to hurry.
Where the deadline will not wait for it, a caveat needs nobody’s agreement, and we will tell you which instrument your file suits on the first call.
How much is available
Combined lending to 80% of value on residential security, 70% on commercial. Value × ceiling − what is owed = roughly what is available. On the example above: $1,250,000 × 80% = $1,000,000, less $690,000 owing, leaves $310,000.
We assess value on our own view of the security. No sworn valuation, which removes a cost and about a week.
Where it fits, and where it does not
It fits when there is a good loan already in place that should not be disturbed, when the amount needed is contained, and when there is a dated exit — a sale, a refinance completing, a receivable.
It does not fit when the business is losing money structurally. This product solves a timing problem. Borrowing at second-mortgage rates against the family home to cover an ongoing loss makes the eventual outcome worse, and we decline files on that basis regularly.
The term is open
No minimum, no maximum, no penalty for repaying early and no fee to extend. Interest is capitalised for the period you choose, so nothing falls due while it runs. If your exit moves, tell us and we move with it.
Reviewed by Catriona Anderson, General Manager