Private Lending/Second Mortgage Loans
Second Mortgage Loans
A second mortgage gets the capital moving — without refinancing, without the bank, without the wait.
Switchboard Finance · Melbourne · Credit Representative 576702 · Finsure ACL 384704
When It Makes Sense
When a second mortgage makes sense.
ATO debt or DPN
Notice to complete
Cash flow gap
Development funding
Refinance running out
Startup with property
How It Works
How a second mortgage loan works.
Letter of offer
Issued within 24–48 hrs. Rate and structure locked upfront.
What Lenders Assess
What gets looked at before approval.
Combined LVR
First + second against forced sale value. Capped at 70–75% LVR.
Exit strategy
Most important factor. Sale, refinance, or business cash flow. No exit, no deal.
Property type
Resi, commercial, industrial. Prefer unoccupied security. Cross-collateral OK.
Company structure
Borrower must be a company/ABN. Property can be personal name if business purpose.
Business purpose
Working capital, tax debt, bridging, growth. Consumer lending doesn't qualify.
Speed requirement
48-hour settlement costs more than 2 weeks. Speed is what you're paying for.
Ready to move?
Your scenario. 48 hours to a letter of offer.
Switchboard Finance · Melbourne · Credit Representative 576702 · Finsure ACL 384704
Comparison
Second mortgage vs caveat loan.
Both are property-backed and fast. The right one depends on your timeline, loan size, and how long you need the facility.
| Second Mortgage | Caveat Loan | |
|---|---|---|
| How fast? | Days — typically 48 hours | Hours — same day possible |
| How much? | $200K–$50M+ at 70–75% FSV | Usually smaller, varies |
| Cost? | From 1% p.m. + establishment + legal | Often 2–4%+ p.m. |
| Term? | 1–24 months, extensions possible | 1–12 months, usually shorter |
| First lender? | Registered on title — transparent | Caveat can trigger default clause |
| Default? | Power of sale — structured, legal | Weaker security, aggressive recovery |
| Lawyers? | Required on both sides | Not always required |
| Qualify? | Equity, business purpose, exit strategy | Equity — often no docs, no credit check |
A caveat exists for a reason — when you've got hours, not days. If you have 48 hours, a second mortgage gives you more capital, lower rates, and a cleaner structure.
Is This Right for You
Who second mortgage loans suit.
Strong fit
Not the right fit
Second mortgage loans — FAQs.
Common questions from Australian business owners considering a second mortgage.
Based on equity. Most lenders cap combined LVR at 70–75% of forced sale value. Property worth $1M, owe $400K — access up to $300K.
From 1% p.m. for second mortgages. First mortgage private loans can be sub 10% p.a. Rates depend on LVR, property, exit, and speed.
Letter of offer within 24–48 hours. Settlement within days after valuation and legal. Timeline depends on how fast you respond.
Not always. Some first lenders require consent, some don't. An experienced broker knows which structures avoid consent issues.
A caveat is a legal notice. A second mortgage is registered security. Second mortgage = lower rates, better terms. Caveat = faster by hours, more expensive. Full comparison above.
Yes — as long as the loan is business purpose and the borrower is a company or ABN holder. Second mortgage registers regardless of title ownership.
Sale, refinance, or sustained business cash flow. Exit strategy is the most important factor. If refinancing, lender may want proof you have a lender lined up.
Establishment fees up to 10%. Legal fees $4K–$6K minimum — lawyers required both sides. Valuation upfront. Total depends on deal size and speed.
If the scenario fits, let's talk.
Second mortgage loans for Australian business owners — structured by Switchboard Finance, Melbourne.