Get Easy Access to Your Equity through second mortgage loans.
Are you looking for second mortgage lenders in Australia to secure a loan using your property? If yes, then Instant Business Finance is the ultimate destination for you. A second mortgage is funding taken against the property on which there is already a first mortgage. By applying for a second mortgage, you will have two different loan amounts secured against one property. The priority of 2nd mortgages will always be behind the first mortgage.
The primary purpose of the borrower to apply for a 2nd mortgage is to access additional funds using your house equity. This loan uses the property as collateral but follows your first loan in priority. In case of a loan default by the borrower, the first mortgage lender gets primary rights to this secured property. They will get out paid first, and the remaining amount will go to the 2nd mortgage lenders in Australia when the property is sold.
Working Principle of Second Mortgage loans
While applying for the first mortgage, the lender provides you with the funding against the property you will buy or have as collateral. The value of the property will increase gradually with time. The primary difference between the mortgage and the current value of your property is known as equity. When the equity value grows, you can take a second mortgage on the same property without selling it off. Applying for the second mortgage means you are asking for funds from the 2nd mortgage lenders against the same property for the first loan as security.
For instance, you have a $300000 mortgage secured against your house with a lender and again applied for a second mortgage loan in Australia on the same property with another lender. If The property is valued at $1M then you could access equity up to $450000 as a 2nd mortgage. The 2nd mortgage lender will sit behind the current first mortgage on the property.
Advantages of applying for 2nd mortgage loans
People take out second mortgage funding for different reasons, and there are certain things that you should consider before starting the application process with Instant Business Finance.
- This loan type allows the borrower to access your home equity and unlock the required cash flow without selling the house.
- The borrower can use the funds for multiple purposes like covering debt consolidation, paying unexpected bills or any business purpose.
- A second mortgage in Australia is also helpful if you want to expand your business
- The funds can also assist you in buying commercial property.
- The second mortgage has lower interest rates than the personal or credit card loan.
- It is much cheaper compared to other finance alternatives in the long term.
- Also, the best option for refinancing, excluding all the additional charges like exit and legal fees and break cost
- Releasing the necessary funds for buying an investment property
- Buying business equipment.
- Get tax deduction for the interest rates paid for this loan.
- Paying for business stock
- Making improvements or grabbing a lucrative opportunity in business
- Fill out the application form online, which takes only 5 minutes
- You will receive an instant decision from our lending team
- Upload the mentioned documents for verification
- Receive the fund for the second mortgage loan as quick as 24 hours
Eligibility Criteria for 2nd mortgage loan
2nd mortgage lenders in Australia usually lend to a maximum of 75% of the value of the property, this must also include the existing debt on the property. Instant Business finance does not require credit checks, tax return documents, or other financial papers for 2nd mortgage loan approval as the property acts like strong collateral for the funds.
The loan amount you can borrow from us depends on the current property value and how much funds have already been paid off on your first mortgage.
The application process for second mortgage loans in Australia
Instant Business Finance has been a name for the reputed second mortgage lender in Australia, for quite a few years. The application process for a second mortgage loan is hassle-free and similar to a first mortgage loan with just some basic differences.
At Instant Business Finance, we take the utmost pride in our organization to deliver a seamless and fast loan application and approval process. You can apply for a second mortgage on a residential, commercial or investment property. But the LVR criteria for approval will be less against any commercial property. You can apply for a loan to Instant Business Finance by following the below four easy steps.
Do you require a second mortgage in Australia? Instant Business Finance provides funds on the first mortgage, second mortgage and caveat loans across the continent. Call us to discuss your financial requirements.