Equity behind your first mortgage can fund the business without refinancing your first loan.
- Funding available within 2 business days through non-bank lenders, once the valuation, the first lender's consent and the deed of priority are in place
- Loans from $100K to $10M, secured by a registered second mortgage over property you own
- Business owners, directors and companies whose property already carries a loan they want to keep
- For tax bills, stock, equipment, a purchase deposit, a business acquisition or a short gap before a sale or refinance
- No-doc and low-doc options assessed on the equity and the repayment plan, with full-doc routes where the file suits them
Your property has equity, the first mortgage is on a rate or term you want to keep, and the business needs money now. Refinancing the whole loan can take weeks and may cost you the terms you already have. A second mortgage business loan is a separate loan secured behind the existing first mortgage. The first loan stays in place, and the new lender takes second place on the title. Joseph Farhat and his team can look at the equity, the first lender and the timing, and tell you quickly which lenders will consider your property in second position and what each one will need.
Who we can help access finance
- Company directors whose business needs funds for an ATO payment, a supplier account or a wage run, with equity in a commercial property the company owns.
- Business owners who want to keep a low fixed rate on their first mortgage and borrow against the remaining equity for a separate purpose.
- Buyers paying a deposit on a business or a second premises while their main property loan stays untouched.
- Companies waiting on a sale or a refinance in the coming months who need funds for the period in between.
- Self-employed business owners with clear equity whose latest tax returns are not lodged yet, and who need funds for the business.
- Business owners offering their home or an investment property as security for a business loan, with independent legal advice before they sign.
How Second Mortgage Business Loans Work
A second mortgage is a mortgage registered on the title behind an existing first mortgage. If the property is sold, the first lender is repaid before the second lender. That ranking is the reason second mortgages are priced higher than first mortgages. The second lender looks at the combined debt against the value. That figure is the loan-to-value ratio (LVR), the loan as a share of the property's value, and here it counts the first and second loans together. A property worth $2M with a $900K first mortgage has a 45% LVR before the new loan. A second lender that goes to 70% could consider up to $500K, subject to the valuation and the rest of the file.
Consent from the first lender is part of most deals. In NSW, paper certificates of title were cancelled on 11 October 2021 and dealings are now electronic, so registration no longer relies on the first lender producing a title. Most first mortgages still require the first lender's consent before another mortgage is granted, and granting one without it is usually a default under the first loan. First lenders also usually expect a deed of priority, an agreement between the two lenders that sets which is repaid first and up to what amount. NSW has not charged mortgage duty since 1 July 2016. Joseph Farhat and his team review the first loan, your equity and the purpose, then approach the lenders on our 90+ bank, non-bank, and specialist panel that write second mortgages for businesses. For unique scenarios, we can introduce you to private finance options.
The property is at risk if the loan is not repaid, and that includes a home offered as security for a business loan. Get independent legal advice before you sign. We are a finance broker, not a lawyer or accountant. If the business may not be able to pay its debts as they fall due, speak to your accountant or a registered insolvency practitioner before taking on more borrowing.
What Lenders Assess for Second Mortgage Business Loans
Combined LVR
the first mortgage balance plus the new loan, measured against a current valuation of the property.
The first lender
who holds the first mortgage, its balance and arrears history, and whether consent and a deed of priority can be obtained in time.
How the loan is repaid
a sale, a refinance of both loans into one, or business cash flow. Lenders look for a repayment plan with dates and evidence.
Purpose of the funds
a business purpose that is stated clearly, such as a tax debt, stock or a purchase.
Property type and location
metro commercial, industrial and residential security is assessed fastest. Specialised or rural property narrows the lender list.
Documents available
full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead), or no-doc where the equity is strong.
Who is signing
the borrowing entity, the registered owners of the property, and any director guarantees the lender asks for.
The Second Mortgage Business Loan Process: What to Expect
- Call Joseph Farhat and his team with the property address, the first mortgage details, the amount needed and what it is for. You get a quick read on likely equity and lender appetite.
- We confirm the first loan terms that affect consent, and identify which lenders on the panel suit the property, the amount and your documents. Each credit enquiry is recorded on your file, so the first lender approached should be one that fits.
- The lender orders a valuation and issues an offer setting out the rate, combined LVR, fees and term. We go through the total cost with you before you accept.
- Consent is requested from the first lender and the deed of priority is prepared. Your solicitor reviews the documents, and anyone offering a home as security gets independent legal advice.
- The second mortgage is registered, funds are paid out, and the loan runs until the agreed repayment date. When it is repaid, the second mortgage is discharged from the title.
Indicative Finance Options
| Lender Type | Indicative Rate | Max LVR | Typical Loan Range | Loan Term | Speed to Funding |
|---|---|---|---|---|---|
| Bank | Not typically offered for second mortgages behind another lender | ||||
| Non-Bank Lenders | From ~11% p.a. | Up to 70% combined | $100K to $3M | 3 to 36 months | Within 2 business days once first-lender consent is in place |
| Private Finance | From ~1.25% per month | Up to 75% combined | $100K to $10M | 1 to 24 months | Available for unique scenarios |
Indicative figures only. Actual rates and terms depend on your project, financial position, property location, and lender assessment at the time of application. Rates are subject to change.
Why borrowers choose Settled With Joe for second mortgage business loans
We represent you, not the lender
Joseph Farhat and his team act in your interest from the first call until the second mortgage is discharged.
We check the first loan before anything else
consent terms in the first mortgage decide how fast a second mortgage can settle, so we look at them on day one.
We know who writes second position
only some lenders take a second mortgage, and appetite changes with property type, location and loan size.
Full cost before you commit
second mortgages carry establishment, legal and valuation fees, and we set them out against the rate and term so you can compare.
One conversation, not several applications
each credit enquiry is recorded on your file, so we approach the most suitable lender first.
90+ lenders on one panel
bank, non-bank, and specialist, so if a top-up or a full refinance with a bank would cost less and fit your timing, you will see that option too.
Private finance for unique scenarios
where bank and non-bank lenders are not the right fit, we can introduce you to private finance options.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
An honest answer early
if the business needs funds this week and the first lender has not been asked yet, tell us early and we will tell you what is realistically achievable.
Frequently asked questions
What is a second mortgage business loan?
It is a business loan secured by a mortgage registered on the title behind an existing first mortgage. The first loan keeps its rate and terms. The second lender is repaid after the first lender if the property is sold, so it prices for that position. These loans are usually short to medium term and are taken for a set business purpose with a planned way to repay, such as a sale, a refinance or business income.
How is a second mortgage different from a caveat loan?
A registered second mortgage is recorded on the title and gives the lender the statutory power of sale if the loan is not repaid. A caveat loan is secured by a caveat, which only protects an unregistered interest in the property. A caveat gives the lender no statutory power of sale, and other unregistered interests may rank ahead of it. Our caveat loans page covers that product, and we can set the two side by side for your property.
Does my first lender need to agree?
In most cases, yes, under the terms of your first mortgage. In NSW, a later mortgage can be registered electronically without the first lender handing over a title, because paper certificates of title were cancelled on 11 October 2021. Granting a second mortgage without consent is still usually a default under the first loan. First lenders generally expect a deed of priority as part of giving consent. Your solicitor can confirm what your loan documents say.
How much can I borrow?
It depends on the value of the property, the balance of the first mortgage and the combined LVR the second lender allows. Non-bank lenders often go to about 70% of the value across both loans, and private options may go a little higher for unique scenarios. Loans on this page range from $100K to $10M. Joseph Farhat and his team will estimate the available equity from your figures before a valuation is ordered.
What does a second mortgage business loan cost?
Second mortgages cost more than first mortgages because the lender is repaid second. Non-bank pricing starts from about 11% a year, and private options are quoted monthly, from about 1.25% a month. Expect an establishment fee, legal and valuation costs, and sometimes a discharge fee. We set out the indicative rate, fees and total cost over the planned term before you apply.
Can I use my home as security for a business loan?
Some lenders on the panel will take a second mortgage over a home to secure a loan for a business purpose. Your home is then at risk if the loan is not repaid. Every registered owner signs the mortgage. Get independent legal advice before signing, and make sure any co-owner who is not part of the business gets their own independent legal advice too.
Can I get a second mortgage business loan with low-doc or no-doc?
Often, yes. Many second mortgage lenders assess the equity, the property and the repayment plan rather than full income records. Low-doc loans use BAS, bank statements or an accountant's letter, and no-doc loans are considered by some lenders at a lower combined LVR. Less documentation usually means a higher rate. Full financials open more lenders and sharper pricing, but take longer to gather. Joseph Farhat and his team will show you both paths against your timing.
Do you work with borrowers with bad credit?
Yes, we do. Defaults, arrears or a judgment on your file do not rule out a second mortgage business loan, and you will not be made to feel awkward raising them. A credit listing says little about the equity in your property or how the loan will be repaid. Several lenders on our panel give those two things more weight than the credit file, and price for the risk instead of declining it. Tell us at the first call, so the first lender approached is one that suits and no extra enquiries land on your file. Joseph Farhat and his team will tell you honestly what is achievable before you apply anywhere.
Why work with Settled With Joe to arrange your second mortgage business loan?
One call to us replaces a round of applications to lenders who may not write second mortgages at all. Most of the people we help with this product are business owners, company directors and property-owning companies who need funds soon and want to keep their first loan: a tax payment due, stock to pay for, a deposit on a business, or a sale that settles next quarter. There is no judgement in that conversation. What lenders weigh is the combined LVR, the first lender's consent and a dated repayment plan. Our panel covers 90+ bank, non-bank, and specialist lenders, so where a bank top-up would cost less and fit the timing, that option is on the table, and where speed matters there are lenders that move within days. We are based in Sydney and arrange these loans across Australia. Joseph Farhat and his team will tell you early and honestly whether a second mortgage fits your property and timeframe.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with second mortgage business loans outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges second mortgage business loans Australia-wide, covering both metro and regional areas. We work with clients in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, as well as regional areas including Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. Title registration and consent practice differ between states, and some second lenders limit regional security. Joseph Farhat and his team will identify which lenders on the panel will take your property in second position.
