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You can use a second mortgage business loan for any legitimate business purpose. Some common examples include:
A business loan with a secured second mortgage is a lending solution using property equity when there is already a mortgage in place. The existing mortgage is referred to as a first mortgage.
Second mortgages are typically fixed rate loans offered by private lenders with loan terms as short as one month.
In addition to term loans, second mortgages can be used as extra security by mainstream lenders so business owners can access more credit for their business.
The application process for a second mortgage loan is a low-doc loan application – we will guide you through the application process to give you the best chance of being approved. Second mortgage lenders will seek to understand your asset and liability position and provide a letter of offer based on the equity you have in your property and your exit strategy. Letters of offer can normally be obtained within hours.
Yes you can get approved for a second mortgage business loan with bad credit. Most private lenders who provide a second mortgage loan do not perform credit checks. This means you can be approved for a second mortgage even if you have defaults on your credit file.
Interest only second mortgages are available. Most 2nd mortgage loan lenders will either capitalise the interest to the loan, which means there are no repayments during the term of the loan or repayments will be interest only.
Most 2nd mortgages are a fixed rate loan. Your letter of offer will document the fixed interest rate that applies to your second mortgage so you can calculate the total interest cost before you agree to go ahead with your 2nd mortgage loan.
Yes, most banks allow a second mortgage loan to be placed provided your first mortgage is not currently in default. Although not mandatory most second mortgage providers will enter into what’s known as a deed of priority with your first mortgage provider. A deed of priority gives the first lender priority and in the event of default, the second mortgage loan provider will be repaid after the 1st mortgage provider has been paid back. It’s common for banks and other lenders holding a first mortgage to provide their consent for a second mortgage loan.
If you’re currently in default with your first mortgage lender you should let us know. There are often solutions available to help you through this circumstance.
2nd mortgages are considered more risky for a lender than a first mortgage so interest rates on second mortgages are more expensive than a first mortgage. However, because a second mortgage is a secured loan rates are usually less than the rates for unsecured loans.
Yes you can refinance an existing second mortgage with another second mortgage loan. Our goal is always to refinance our clients to the best business loan option but there may be circumstances that make it appropriate to refinance an existing loan with another at the end of term.
No, there is no limit on how much equity you can cash out with a 2nd mortgage business loan. Your lending limit will be determined by your property value and the amount of equity you hold in property. Our private lenders can fund up to $50M.
A second mortgage application process is normally a low-doc application, which means you don’t need to provide financials or tax returns. This makes the application process much faster than a traditional bank loan. A 2nd mortgage loan letter of offer is normally obtained within a few hours.
Yes you can get a second mortgage loan for business. Most second mortgage providers do not have the same requirements as banks, so they will lend to start-up businesses provided you have sufficient equity in your property to secure the second mortgage loan against.
Disclaimer: Loans and loan products are to approved applicants only. Rates, fees, policy and inclusions are subject to change without notice. As such no guarantees or warranties are made about the accuracy of the information on this page.
Second mortgage loan services available across Australia provides homeowners with a flexible financial tool to leverage the equity in their properties. These services allow individuals to secure a second loan against their homes, typically on top of an existing primary mortgage. Lenders in Australia offer a variety of second mortgage options, each with its own terms and conditions. A second mortgage can be a valuable resource in achieving business growth. Get in contact today.