How a Second Mortgage Loan can help businesses
When the Covid-19 pandemic first started Private Mortgages Australia made the decision to stop lending on Second Mortgages in order to minimise risk. However, we’re now back to business as normal and are now taking applications from Borrowers needing a Second Mortgage.
A Second Mortgage loan is an increasingly popular method of accessing additional capital. This type of funding allows the lender to register the second interest on an asset that is already secured. It is advantageous to business owners as it expands their financing options, allowing for choices that will suit their financial needs.
Second Mortgage loans provide the flexibility of refinancing your existing asset with another lender and can meet your short-term needs whilst keeping cheaper first mortgage loans in place. Businesses requiring the loan for a short amount of time can repay the loan early and have the Second Mortgage interest removed.
Business loans obtained through major banks can be quite difficult to gain approval and often require existing mortgages to be refinanced. Hence, it may seem like a minefield of strict policies and endless documents. However, private business loans secured by Second Mortgages are quite simple and straightforward to establish.
Private Mortgages Australia offers Second Mortgages of up to $2million across a wide range of our lending solutions including:
- Bridging or Working Capital Loans
- Business Purchase/Establishment Finance
- Business Equipment Purchase Loan
- Equity Release
- Refinance & Debt Consolidation
- ATO Tax Debt Loans
- Land & Property Finance
- Land Subdivision Finance
- Renovation Flip Finance
- Construction Completion Finance
- Mezzanine Finance
A Second Mortgage from Private Mortgages Australia is ideal for business borrowers who:
- Already have a First Mortgage over a property but want to access equity
- Require funding quickly and can’t wait for banks to assess their application
- Cannot provide proof of income or serviceability but have a sound exit strategy
- Do not meet the strict criteria of banks and traditional lenders
If you have a Second Mortgage scenario you’d like Private Mortgages Australia to consider, all you need to do is fill in our Quick Application Form and we’ll get back to you within 4 business hours with an Indicative Letter of Offer. What’s more, once we’ve received all the required information from the Borrower then we can usually settle a loan within five business days.
If you’d like to discuss your Second Mortgage scenario please book a time to speak with our Relationship Team.
