Second mortgage

Use your equity. Keep your first mortgage.

A second mortgage sits behind the loan you already have. You raise capital against your equity without refinancing or breaking a fixed rate.

Position

Second charge

Settlement

~5 days

Combined LVR

To 75%

Term

To 24 months

Indicative only. As brokers we place your deal with the right private lender; final terms are set by that lender.

Raise capital without touching your first mortgage.

A second mortgage ranks behind your existing first mortgage on the same property. It lets you borrow against the equity you hold without refinancing the whole debt, breaking a fixed rate, or disturbing your relationship with the first lender.

The second lender is in a weaker position if a sale goes wrong, so the rate is higher than a first mortgage. That is the trade for leaving the cheap first-mortgage debt in place. We look at the combined loan-to-value across both loans and place the deal at the sharpest price the security supports.

Business owners, developers, and investors use a second mortgage when they need capital for a commercial purpose quickly and have a clear way to repay it. The first lender has to consent to the second mortgage being registered, and we manage that step.

What it looks like

  • Second-ranking registered mortgage, first mortgage stays in place
  • Combined LVR up to 75% across both loans
  • No need to refinance or break a fixed rate
  • Settlement often within 5 business days once consent is in hand
  • Interest-only repayments
  • Repaid on sale, refinance, or business cash flow

Who this is for.

Capital raise

Raise money for a commercial purpose against your equity while the cheap first-mortgage debt stays exactly where it is.

Business funding

Put working capital into the business when the bank is too slow. A second mortgage can settle in days once the first lender consents.

Cover a shortfall

Close a short-term gap, a deposit shortfall or a settlement timing problem, while your main exit plays out.

A second mortgage is about leaving a good, cheap first loan alone and borrowing against the equity behind it. The art is placing it at the sharpest rate the combined position supports, and getting the first lender's consent moving early. Give me the numbers on both loans and I'll tell you quickly what's possible.
Rory McGrath
Rory McGrath

Founder and Managing Director, Aurelius Private

Common questions.

Usually, yes. The first lender has to agree to a second mortgage being registered behind them. We handle that request and can read the likely answer based on who your first lender is before you spend money on the deal.
Most private lenders go to around 75% combined LVR. That is your first mortgage plus the second added together, measured against the property value. Stronger security and a clean exit can push it higher.
If the property is sold to recover the debt, the first lender is paid out before the second sees a dollar. The second lender takes more risk, so the rate is higher: lenders on our panel typically price second mortgages from around 12% a year. Those figures are indicative and set by the lender. You are paying for that ranking, not for the money itself.
A second mortgage is a registered interest on the title, which gives the lender a real security position behind the first mortgagee. A caveat loan only lodges a caveat, a notice that blocks dealings on the title. It is faster to put in place but weaker as security, so it is shorter and dearer.
Selling the property, refinancing both loans into a single facility, or repaying from business cash flow. We assess each deal on its own exit. If a full refinance is the cleaner answer, look at our first mortgage option.

Second mortgage near you

We are based on the Gold Coast and place second mortgage for clients right across South East Queensland. Explore by area:

Tell us about your deal.

Send through the scenario. You’ll hear back the same day with who would fund it and roughly what it costs. If it doesn’t stack up as it stands, we’ll say so and tell you what would need to change.