When traditional business loans fall short—or time is of the essence—second mortgage finance can be a powerful alternative. It allows business owners to unlock equity in a property they already own, even if there’s a first mortgage in place.
At Capital Plus Finance, we often help clients access fast capital for everything from tax debt to expansion using second mortgages or caveat loans. Here’s what you need to know.
What is Second Mortgage Finance?
A second mortgage is a loan secured against the equity in a property that already has a primary (first) mortgage. It doesn’t replace your existing loan—it sits behind it in priority, meaning the lender gets repaid second if the property is sold.
It’s commonly used for:
- Paying ATO debts
- Purchasing urgent equipment or stock
- Refinancing expensive short-term loans
- Business turnaround strategies
Benefits of Second Mortgage Loans
- Fast access to capital—often within 3–5 business days
- No need to refinance your existing mortgage
- Use property equity without selling or restructuring
- Flexible loan terms—3 months to 3 years
- Works even with ATO arrears, defaults, or poor credit
Who Is It Right For?
This finance option suits:
- Business owners with equity-rich property
- Those who need urgent funding
- Clients with existing bank loans they don’t want to disturb
- Directors with impaired credit or unresolved tax issues
Common property types used:
- Residential homes
- Commercial buildings
- Industrial or mixed-use assets
What to Watch Out For
- Interest rates are typically higher than first mortgages
- Shorter terms (3–12 months common) mean faster repayment cycles
- You must repay or refinance the loan by the end of term—no long-term hold
It’s important to have a clear plan for repayment or exit, such as refinancing or asset sales.
Final Thought
Second mortgage funding isn’t a fit for everyone—but when used strategically, it can help you seize opportunities or survive challenges that standard finance can’t cover.
Get the Equipment You Need—Without the Financial Stress
From new machinery to expanding into new projects, equipment finance lets you invest in growth while keeping your cash flow healthy.
👉 Book a meeting with the Capital Plus Finance team today and let’s find the right solution for you.
