Second Mortgage Brokers

What Is A Second Mortgage?

A second mortgage is a mortgage that is lodged against the title of your property. The purpose of applying for a second mortgage is to access equity held in your home. Let's say you home is worth $500 000, and you owe $100 000 on your mortgage, then on paper at least, you have $400 000 equity in your home. A second mortgage can help you access these funds.

When you have a second mortgage on your home, it sits behind another mortgage called the first mortgage. The first mortgage will have a priority arrangement with the second mortgage. This means that in a situation where there is a loan default and sale of the property is forced by a lender, the first mortgage will be paid first. The second and subsequent mortgages after that are paid from remaining funds.

Second mortgages may be used in finance cases where business finance cannot be obtained via traditional lenders. Second mortgage business finance is a specialised form of lending. To be effective and practicable, it requires advice and an assessment to ensure suitability for the businesses requirement it is intended to solve.

How will I have equity in my home?

Many home loans these days have an offset account, where cash can still be accessed, however, each monthly repayment on a home loan, decreases the amount you have borrowed. Another factor which creates extra equity in a home is an increase in the housing market, which means you home is worth more than it was when you first purchased it. 

When is a second mortgage useful?

A second mortgage broker may suggest this option for business loans to cover tax debts or for money owed to other creditors, such as suppliers. It is a way to access funds while continuing to trade of a business is still viable, and just needs an injection of cash to balance accounts.

Of course all information here is general and is not intended as advice. If you have some debt problems that you would like to solve, then contact us for advice today.

Second Mortgage Lending Criteria

Second mortgage loans are usually required for one of two reasons.  

  1. You don’t fit the lending criteria of traditional or other lenders.
  2. You need the funds urgently and other more main stream lending cannot provide funds in sufficient time frame.

Some of the benefits of second mortgage business finance relate to the two points above which I will expand on:

  • Second Mortgage Finance is predominantly for business purpose only.
  • Usually no income assessment is required.
  • Pure Asset Lending
  • Suitable for start-up businesses – 1 day ABN registration.
  • Payment of Tax Debt and other business debts ok
  • Some don’t require valuations

Complete Enquiry Form 1300796850

How Fast Can A Second Mortgage Be Settled

A second mortgage needs to be approved by the first mortgagee which can take some time. While the second mortgage lodgement is being negotiated with the first mortgagee, the second mortgage provider gives access to funds secured by a caveat against the property title. This allows for extremely fast loan settlements.

  • 24 - 48 hour settlement is achievable. This is pending that all requirements met.

Main Uses For Second Mortgage Finance

  • Pay creditors to stop a business wind up
  • Business Restructuring. They can be used when closing one income entity and establishing a new trading ABN and entity.
  • Liquidation of a company. This also relates to business restructuring, when a company is liquidated and there are company overdrafts and business loans. These will usually need to be restructured under the new entity in a relatively short period of time. The short term nature of the income wont fit the lending criteria of traditional lenders.
  • Part or full payment of ATO debt. The first mortgage refinance is the preferred method of funding ATO debt. However at times, second mortgages are required if a pending judgement or court proceeding is imminent and funding cannot be settled in a satisfactory time frame.
  • Part or full payment of business debts such as outstanding invoices, business overdrafts or business loans. This would usually only be done when a business is still viable after debt has been paid.

If you want advice about applying for a second mortgage, or other options to solve business debts, contact our team for a free consultation.

Let's talk about a solution that suits you

Risks and Benefits of second mortgage loans?

Second mortgage loans are usually required for one of two reasons, as under normal circumstances the risks outweigh the benefits:

  1. You don’t fit the lending criteria of traditional or other lenders.
  2. You need the funds urgently and other more main stream lending cannot provide funds in sufficient time frame.

Some of the benefits of second mortgage business finance relate to the two points above which I will expand on:

Second Mortgage Lending Criteria

  • Second Mortgage Finance is predominantly for business purpose only.
  • Usually no income assessment is required.
  • Pure Asset Lending
  • Suitable for start-up businesses – 1 day ABN registration.
  • Payment of Tax Debt and other business debts ok
  • Some don’t require valuations

Find Out More 1300796850

Speedy Settlement

A second mortgage needs to be approved by the first mortgagee which can take some time. While the second mortgage lodgement is being negotiated with the first mortgagee, the funder provide funds secured by a caveat against the property title. This allows for extremely fast loan settlements.

  • 24-48 Hour settlement achievable – pending all requirements met.

Uses for Second Mortgage Finance

  • Pay creditors to stop a business wind up
  • Business Restructuring – closing one income entity and establishing a new trading ABN and entity.
  • Liquidation of a company – which also relates to business restructuring, when a company os liquidated and there are company overdrafts and business loans, these will usually need to be restructured under the new entity in a relatively short period of time. The short term nature of the income wont fit the lending criteria of traditional lenders.
  • Part or full payment of ATO debt – first mortgage refinance is the preferred method of funding ATO debt, however at times second mortgages are required if a pending judgement or court proceeding is imminent and funding cannot be settled in a satisfactory time frame.
  • Part or full payment of business debts such as outstanding invoices, business overdrafts, business loans etc.

Find Out More

Requiring Finance?

If you require a business loan from $5,000 to $500,000 with no upfront fees* then apply now! We'll have one of our loan consultants call you as soon as possible.





No Doc Loan

Struggling to provide tax returns or financials? Caveat and second mortgages can have very flexible income assessment criteria.

Consolidation

Second mortgage debt consolidation can help pay debts causing bankruptcy and business wind up. Tax debts, court judgements, or other business debts can be solved with a second mortgage.

Fast Settlements

Second Mortgages can affect a settlement in as little as 2 days. Do you have a need for a fast settlement? Is the ATO or other creditors seeking to wind up your business?

What Is A Second Mortgage?

A second mortgage is a mortgage that is lodged against the title of your property and sits behind another mortgage called the first mortgage. The first mortgage will have a priority arrangement with the second mortgage – this mean in a situation where there is a loan default and sale of the property by a lender the first mortgage will be paid first, and the second and subsequent mortgages are paid from remaining funds.

Second mortgages may be used in finance cases where business finance cannot be obtained via traditional lenders. Second mortgage business finance is specialised finance and requires advice and assessment to ensure suitability for a businesses requirements.

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Let’s talk about a solution that suits you

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Risks and Benefits of second mortgage loans?

Second mortgage loans are usually required for one of two reasons, as under normal circumstances the risks outweigh the benefits:

  1. You don’t fit the lending criteria of traditional or other lenders.
  2. You need the funds urgently and other more main stream lending cannot provide funds in sufficient time frame.

Some of the benefits of second mortgage business finance relate to the two points above which I will expand on:

Second Mortgage Lending Criteria

  • Second Mortgage Finance is predominantly for business purpose only.
  • Usually no income assessment is required.
  • Pure Asset Lending
  • Suitable for start-up businesses – 1 day ABN registration.
  • Payment of Tax Debt and other business debts ok
  • Some don’t require valuations

Find Out More 1300796850

Speedy Settlement

A second mortgage needs to be approved by the first mortgagee which can take some time. While the second mortgage lodgement is being negotiated with the first mortgagee, the funder provide funds secured by a caveat against the property title. This allows for extremely fast loan settlements.

  • 24-48 Hour settlement achievable – pending all requirements met.

Uses for Second Mortgage Finance

  • Pay creditors to stop a business wind up
  • Business Restructuring – closing one income entity and establishing a new trading ABN and entity.
  • Liquidation of a company – which also relates to business restructuring, when a company os liquidated and there are company overdrafts and business loans, these will usually need to be restructured under the new entity in a relatively short period of time. The short term nature of the income wont fit the lending criteria of traditional lenders.
  • Part or full payment of ATO debt – first mortgage refinance is the preferred method of funding ATO debt, however at times second mortgages are required if a pending judgement or court proceeding is imminent and funding cannot be settled in a satisfactory time frame.
  • Part or full payment of business debts such as outstanding invoices, business overdrafts, business loans etc.
Find Out More

Requiring Finance?

If you require a business loan from $5,000 to $500,000 with no upfront fees* then apply now! We’ll have one of our loan consultants call you as soon as possible.

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