Second mortgage loans, also known as 2nd mortgage loans, provide a flexible way for property owners, business owners, investors and developers to access the equity in their property while keeping their existing first mortgage in place.
A second mortgage or 2nd mortgage is secured behind your existing home loan or first mortgage and allows you to unlock property equity for business or investment purposes without refinancing your current loan. This type of finance is ideal when traditional banks are unable to assist or when funding is required quickly.
As an experienced second mortgage lender and private mortgage lender, Prime Finance specialises in 2nd mortgage finance, property equity loans, and short-term property finance across Australia. Because our loans are secured by real estate, we can often approve and settle 2nd mortgage loans much faster than major banks.
Our second mortgage finance can be secured against residential, commercial, industrial and investment properties and may be used for:
Whether you're looking for a 2nd mortgage lender, private second mortgage loans, property equity finance, commercial second mortgage or asset-backed business finance. Prime Finance offers flexible lending solutions tailored to your circumstances.
We understand that every borrowing scenario is different. Our second mortgage loans Australia are designed for borrowers who need fast, reliable funding secured by property, including business owners, property investors, developers and self-employed borrowers.
If you need a 2nd mortgage, second mortgage loan, private mortgage loan or property-backed business loans, our experienced team can help you access the equity in your property with a simple application process, fast approvals and competitive lending solutions.
Residential Property, Bridging Loan, Business Loan & Commercial Loan |
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Locations |
Australia wide | ||||||||
LVR |
Major Cities: Up to 80.00% LVR Regional Cities: Up to 75.00% LVR Rural / Destination: 70.00% LVR Loan value to be inclusive of all capitalised interest and fees incurred during the loan period. |
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Interest Rates |
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Upfront Fees |
Legal and valuation fee only | ||||||||
Default Fees |
5% p.m. | ||||||||
Terms |
Minimum 1 month to 1 year * Where minimum of 1 month to 1 year can agree to a shorter term |
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Amount |
$50k - $500k | ||||||||
Security |
2nd Mortgage | ||||||||
Exit Strategy |
Each loan on its merits | ||||||||
Valuation Methodology |
All valuations must be on an 'as is basis' where the residual land value relating to a development scheme is ignored. | ||||||||
Residential Property $0.5m - $20m |
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Locations |
Major Cities: Sydney (50kms), Melbourne (35kms), Brisbane (20kms), Gold Coast (20kms), Canberra (10kms) Regional Cities: Newcastle, Wollongong, Geelong, Central Coast (NSW) Destination: Byron Bay, Southern Highlands, Mornington Peninsula, Noosa Note: Regions / suburbs other than the above to be considered on a case-by-case basis |
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LVR |
Major Cities: Up to 75.00% LVR Regional Cities: Up to 65.00% LVR Rural / Destination: 55.00% LVR Loan value to be inclusive of all capitalised interest and fees incurred during the loan period. |
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Interest Rates |
RBA Cash Rate Floor to be 3.60% |
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Default Fees |
0.05% p.m. to be deducted from the Manager's Default Management Fee | ||||||||||||||
Terms |
Minimum 6 months* * Where minimum of 6 months is not achievable, Prime finance can agree to a shorter term where Prime finance is granted 1.5% of upfront fee (on a pro rata basis relative to invested amount). |
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Amount |
$0.5m - $20m | ||||||||||||||
Security |
2nd Mortgage First or second ranking PPSR / GSD over the Borrower Specific Security Deed over shares of the borrower (where relevant) Personal Guarantee Any other security reasonably required by the investor. |
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Exit Strategy |
An exit must be specified. Exit type requiring discussion to include:
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Senior Lender Profile |
Senior lender / 1st Mortgagee must be either a bank / ADI or bank / ADI like lender in terms of interest, fees & covenants (e.g. Pepper, Resimac, Liberty etc.) | ||||||||||||||
Valuation Methodology |
All valuations must be on an 'as is basis' where the residual land value relating to a development scheme is ignored. | ||||||||||||||
Strata or Company Title |
Where a property is strata or company title:
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Commercial, Industrial, Retail $1m - $5m |
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Locations |
Major Cities: Sydney (50kms), Melbourne (35kms), Brisbane (20kms), Gold Coast (20kms), Canberra (10kms) Regional Cities: Newcastle, Wollongong, Geelong, Central Coast (NSW) Destination: Byron Bay, Southern Highlands, Mornington Peninsula, Noosa Note: Regions / suburbs other than the above to be considered on a case-by-case basis |
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Other |
Properties must be leased to an unrelated third party of suitable quality. Where leased to a related party, criticality of the property to ongoing operations must be evident alongside verification of solvency of lessee. |
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LVR |
Major Cities: Up to 65.00% LVR* Regional Cities: Up to 50.00% LVR Loan value to be inclusive of all capitalised interest and fees incurred during the loan period. Minimum capitalisation rate accepted on Valuation to be a minimum of 6.25% for Commercial and Retail, 5.50% for Industrial |
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Interest Rates |
RBA Cash Rate Floor to be 3.60% |
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Default Fees |
0.05% p.m. to be deducted from the Manager's Default Management Fee | ||||||||||
Terms |
Minimum 6 months* * Where minimum of 6 months is not achievable, Prime finance can agree to a shorter term where Prime finance is granted 1.5% of upfront fee (on a pro rata basis relative to invested amount). |
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Amount |
$1m - $5m | ||||||||||
Security |
2nd mortgage First or second ranking PPSR / GSD over the Borrower Specific Security Deed over shares of the borrower (where relevant) Personal Guarantee Any other security reasonably required by the investor. |
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Exit Strategy |
An exit must be specified. Exit type requiring discussion to include:
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Senior Lender Profile |
Senior lender / 1st Mortgagee must be either a bank / ADI or bank / ADI like lender in terms of interest, fees & covenants (e.g. Pepper, Resimac, Liberty etc.) | ||||||||||
Valuation Methodology |
All valuations must be on an 'as is Basis' where the residual land value relating to a development scheme is ignored. The Investor may choose to accept a valuation on an 'as-is site related valuation' on a case-by-case basis. Minimum capitalisation rate accepted on Valuation to be a minimum of:
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A second mortgage loan is a loan secured against a property that already has a first mortgage registered by another lender. The second lender registers their mortgage behind the first mortgage, allowing the borrower to access additional equity from the property.
Second mortgage loans are commonly used by business owners, property investors, developers, and commercial borrowers who require quick access to funds for business or investment purposes.
Second mortgage finance is often used for:
Business cash flow
Commercial opportunities
Property development projects
Property settlements
Tax debt payments
Investment opportunities
Bridging finance between transactions
A private second mortgage lender can often approve loans quickly with settlements sometimes occurring within a few days depending on the valuation and documentation required.
Second mortgage loans can be secured against:
Residential property
Commercial property
Industrial property
Investment property
Development sites
Most traditional banks rarely provide second mortgage loans for short-term funding. As a result, borrowers often work with private lenders that specialise in second mortgage finance.
Fuel your business aspirations with Prime Finance Business Loans, where we understand that capital is the lifeblood of growth. If you’re looking to expand, innovate, or simply navigate through challenging times, our business loans and debtor financing facilities are tailored to meet your unique needs.
Transform your business and beyond. Short Term Business Loans are used by thousands of businesses each year Australia wide, who need urgent access to large sums of money. A business loan needs to be repaid by the company or individual according to the loans terms and conditions. It can be frustrating if your invoices are going unpaid. When it has been months, the impact on your cash flow is going to become more and more pronounced. Effective financing is the foundation of any good company. Some businesses use their business loans to pay towards office supplies, wages & super, business projects, cash flow, purchasing an office or storefront, advertisement expenses etc.