What is a second mortgage?
A second mortgage is a lien on a property which is subordinate to a more senior mortgage or loan. Called lien holders positioning the second mortgage falls behind the first mortgage. This means second mortgages are riskier for lenders and thus generally come with a higher interest rate than first mortgages.
How much can I borrow?
Most private lenders restrict your Loan to Value Ratio (LVR) to between 60-75% of the property value at Prime Finance we go to 80% LVR!
- Fast turnaround times, 3-7 days
- Loan amount up to 80% of LVR
- Serviceability accountant’s letter
- Easy lending criteria, minimal application and non-time consuming, an experienced broker will make the Prime Finance application process run smoothly
Short term 2nd mortgage loan
Short term 2nd mortgage loans are no longer than a 12 month period or as short as one month.
Intermediate 2nd mortgage loan
Intermediate term 2nd mortgage loans usually have a term to maturity of 1 – 3 years.
Prime Finance 2nd mortgage product guides business purpose
1. Loans up to 1.5 million dollars
2. LVR up to 80% of as is value (terms and conditions apply)
3. 2nd mortgage loan rate is 1% per month
4. Loan term is 1 month to 3 years
Prime Finance acceptable 2nd mortgage securities
· Residential properties in metropolitan areas
· Rural / Residential properties (population over 50,000)
· Commercial properties
· Industrial properties
· Vacant Land (in metropolitan areas only, LVR up to 75%)
· Development sites (subject to terms and conditions)