A second registered mortgage sits on your title behind the first. What the register shows, how priority and tacking work, and how discharge clears it.
Property Lending Hub
Second Registered Mortgage · Title · Priority
What a second registered mortgage records on your title, how it ranks behind the first lender, what tacking and power of sale mean, and how it comes off.
Quick Answer
A second registered mortgage is a mortgage recorded on your property's title behind an existing first mortgage, which gives the second lender a legal interest that ranks after the first lender's and is removed only when it is repaid and formally discharged. The title register shows both lenders in order, so anyone who searches the title can see them. If you are weighing one up, start with how a second mortgage loan is set up and what a registered mortgage actually is.
Also called: second ranking mortgage, second position mortgage, second charge mortgage. The first two are Australian terms for the same position on the title; second charge mortgage is the UK term for the same thing.
What is a second registered mortgage?
A second registered mortgage is a mortgage lodged with the state land registry and recorded on your title behind a first mortgage that is already there. Registered means recorded on the title. Australian land mostly sits on the Torrens system, where the government register is the official record of who owns the property and which interests sit over it, and the register shows who ranks first.
Second ranking mortgage, second position mortgage and second charge mortgage all describe that same place in line. When lenders talk about a second mortgage, they usually mean a registered mortgage in second position. Your first mortgage is not changed by it. It keeps its terms, its repayments and its place at the front.
What lenders actually look at first when you ask about a second registered mortgage is the title itself: who owns the property, what is already registered against it, and how much equity is left once the first loan is counted in full. The second mortgage guide covers how the loan works from application to repayment; this insight stays on what the mortgage means for your title.
Registered or unregistered: what is the difference for a second mortgage?
The difference is what the lender can rely on: a registered second mortgage is a legal interest recorded on the title, while an unregistered mortgage is an equitable interest that rests on the signed documents and usually needs a caveat to warn others it exists. A caveat warns, a registered mortgage secures.
| Interest on the title | What it is | What it gives a second lender |
|---|---|---|
| Registered second mortgage | A mortgage lodged and entered on the land register behind the first mortgage | A legal security interest, priority by registration order, typically, and the remedies of a registered mortgagee, subject to the first mortgage |
| Unregistered (equitable) mortgage | A signed mortgage or charge that has not been registered on the title | An equitable claim under the documents, which can lose out to an interest registered later if it is not protected |
| Caveat | A notice on the title that someone claims an interest in the property | A warning that can hold up some later dealings; it protects a claim but does not by itself create a mortgage |
Most second mortgage lenders want to register because registration is what turns the signed documents into a recorded legal interest. Where a lender offers a caveat instead, the trade-offs for you are set out in second mortgage vs caveat loan, and the product side sits on the caveat loan glossary entry.
What does a second registered mortgage look like on a title search?
On a title search, a second registered mortgage shows as its own mortgage entry, usually listed after the first, with the lender named as mortgagee and a dealing or instrument number that identifies the registered document. It does not show the loan amount, the rate or the repayments, only that the mortgage exists and who holds it.
| Entry on the search | What it typically shows | What it tells you |
|---|---|---|
| Registered proprietor | The owner or owners of the property, by name | Who must sign the mortgage, including a company or trustee where one holds title |
| First mortgage | The first lender as mortgagee and its dealing or instrument number | The lender that ranks first and is paid out first on a sale, typically |
| Second mortgage | The second lender as mortgagee and a later dealing or instrument number | The lender behind the first; the order on the register follows the order of registration, typically |
| Caveat, if lodged | The caveator and the interest it claims | Someone else says they have a stake that is not a registered mortgage |
| Discharged mortgages | Usually absent from a current search; some registries offer a historical search that lists them | A mortgage that has been discharged no longer sits over the property |
State registries differ in what a search shows, what it costs and what each entry is called. In Victoria, Land Use Victoria publishes its search products, fees and forms on its fees, guides and forms page, and each other state runs its own registry. How the second lender deals with title in Victoria and New South Wales is covered in second mortgage in Melbourne and second mortgage in Sydney and NSW.
Sources: Land Use Victoria, Fees, guides and forms. Read 12 November 2026. Table entries are illustrative and vary by state registry and search product.
How is priority between a first and second mortgage set?
Priority between a first and second mortgage is set mainly by the order in which they are registered, so the mortgage registered first ranks ahead unless the lenders agree otherwise. Priority follows registration order, typically, which is why a second registered mortgage sits behind the loan that was already on the title.
Priority matters most when the property is sold or the loans are enforced. The first lender's whole debt is counted before the second lender sees anything, so the second lender's cushion is whatever value is left after the first loan, measured as a combined loan to value ratio across both. In our own files, that is why the valuation decides most second mortgage conversations: the equity behind the first loan is the second lender's only real buffer.
Lenders can change or cap the order by agreement. When the two lenders sign a document that fixes who ranks where, and for how much, that is a deed of priority, covered in bank consent and the deed of priority.
What is tacking, and can the first lender lend more ahead of you?
Tacking is when a first lender lends you more under its existing mortgage and that extra amount also ranks ahead of the second mortgage, so a further advance can push ahead of you, depending on the priority terms. For the second lender, it means the debt in front of it can grow after it has lent.
Many first mortgages secure everything you owe that lender from time to time, not just the original loan. Whether a later advance keeps first priority once the first lender knows a second mortgage exists depends on the wording of the mortgage, any priority agreement between the lenders and the land law of the state the property is in, which is not the same everywhere.
This is why second lenders often ask the first lender to agree to a cap on what can rank ahead of them. The same priority cap shows up in construction lending, where progress draws keep adding to the first loan; the second mortgage behind a construction loan guide explains how those caps are set. How tacking applies to your own title, and to a particular further advance, is a question for your solicitor.
Can a second mortgagee sell the property?
A second mortgagee can generally sell the property if you default and the mortgage and state law allow it, but it sells subject to the first mortgage, which is paid out ahead of it from the sale proceeds. A second lender selling has to deal with the first lender's debt before it recovers its own.
In principle, the process starts with a default under the loan, followed by the formal notices the mortgage and state law require, before any sale can go ahead. The notice steps and timing vary by state and by document, so they are not set out as fact here. On a sale, the proceeds are typically applied in order: the costs of the sale, then the first mortgagee, then the second mortgagee, then any later registered interests, with anything left over paid to the owner.
Falling into arrears is usually where this begins, and early contact with both lenders tends to keep more options open. Where a second mortgagee stands on default over commercial property is covered in the commercial second mortgage guide, and the steps once a lender has taken possession are in mortgagee in possession refinance.
How is a second registered mortgage discharged?
A second registered mortgage is discharged when the loan is repaid in full and the lender signs a discharge that is lodged with the land registry, which removes the mortgage from your title. Discharge is the last step, not the payout: until the discharge is registered, the mortgage still shows on the title even if the money has been paid.
- Ask for a payout figure. The lender issues a payout figure valid to a set date, including interest and any discharge costs.
- Pay it out. Usually from a sale, a refinance or your planned exit strategy, often at a settlement.
- The lender's side prepares the discharge. The signed discharge is lodged with the registry, commonly electronically at settlement.
- The title updates. The mortgage entry comes off, and a fresh title search should no longer show it.
When the first mortgage is refinanced but the second stays in place, the new first lender usually wants to rank ahead of the second, so the second lender's agreement or a new priority arrangement is needed before the refinance settles. Second mortgages are short loans by design, and the short-term second mortgage post covers what sets the clock. The steps at the start, from application to registration, are in how a second mortgage loan works.
A second registered mortgage is a legal interest recorded on your title behind the first mortgage. The register shows who ranks first, priority follows registration order unless the lenders agree otherwise, and a first lender's further advances can sometimes rank ahead of the second. On default, a second mortgagee can sell only subject to the first mortgage. The mortgage stays on the title until a discharge is registered, so plan the payout and the discharge together. For the loan itself, see second mortgage loans and the Property Lending Hub.
Key takeaway: order a title search before you sign, so you know exactly what is registered ahead of you and what has to come off at the end.Frequently Asked Questions
A 2nd registered mortgage is a mortgage recorded on the property's title behind the first registered mortgage, giving a second lender a legal interest that ranks after the first. It is the same thing as a second registered mortgage, written with a numeral. Both lenders appear on a title search, typically in the order they were registered, and the registered mortgage entry explains what registration adds.
A second ranking mortgage is a mortgage that ranks behind the first mortgage on the same property, so the first lender is paid before it from any sale. The word ranking refers to priority, which usually follows the order of registration on the title. In everyday use it is another name for a second mortgage.
A second position mortgage is a mortgage sitting in second place on the title, behind an existing first mortgage, with the first lender ahead of it on any payout. Position, ranking and registered all point to the same place in line. Lenders price and assess it as a second mortgage loan, because the equity behind the first loan is its only buffer.
A second charge mortgage is the UK name for what Australians usually call a second mortgage: a loan secured over a property behind an existing first mortgage. The idea is the same, but the rules, registration and regulation differ by country. For Australian property, read Australian sources such as the second mortgage guide.
A registered second mortgage does show on a title search, as its own mortgage entry naming the lender and a dealing or instrument number, usually listed after the first mortgage. The search does not show the amount owed. An unregistered arrangement may only appear as a caveat, and the differences are covered in second mortgage vs caveat loan.
FBAA Accredited
