Apply for a second mortgage? Consider LoansOne
Are you interested in applying for a second mortgage loan over a property that already includes a first mortgage loan? It might sound dangerous to some, but there are several scenarios where these funds become strategically favorable for the borrower. A 2nd mortgage loan is a loan over any real estate asset, which comes after the current first mortgage loan. The borrower can use it for a short term and second mortgages have a higher interest rate than the other funding options.
However, there is a greater risk involved in lending on a second loan mortgage to the borrower. The 2nd mortgage lenders will have low priority than the 1st mortgage lenders. They will get all the repayment first when the borrower sells the asset or the property. The higher interest rate reflects this risk. The 2nd mortgage funders can use a LVR or Loan to Value Ratio against the property up to a maximum of 75%. It will allow the borrower to unlock a higher property portion and offers cash for all the financial requirements.
How can you use the second Loan Mortgage from LoansOne?
The borrower of the second loan mortgage can use this funding from LoanOne in the following ways.
● For purchasing business stock and inventory at competitive prices
● Consolidating any current business loans
● For property development with the subdivision and DA cost
● Seasonal requirements of cash flow for the company
● Accessing the additional funding will allow the business owner to expand their operations
● Offers options for financial objectives and needs of the business
● Any worthwhile business purposes
If the first mortgage loan is on a fixed interest rate, the borrower can select a second mortgage funding option rather than refinancing the current first mortgage..
Reason for popularity of second mortgage Loan from LoansOne
At LoansOne, our financial expert thoroughly goes through all the second mortgage loan applications to quickly approve them. We completely understand that borrowers do not wish to wait for funding in emergencies and we make the loan application process seamless. Our well-skilled and experienced financial specialists are always there for the borrower to help them in each step of a loan application, regular communication on the funding progress and loan approval. Let us now look into the other reasons why LoanOne is famous for arranging 2nd mortgage loans in Australia.
● Offers funding alternatives that others do not
● Search for different financial solutions and offer them to the clients
● Fully understand the necessities and complexities of a 2nd mortgage loan application.
● Explains the cost structure of the loan from the beginning so that the borrower will know what to expect
Are 2nd mortgages funds perfect for you?
Taking a second mortgages is perfect for you if you are in any of the circumstances below.
● If you are a developer or a builder and need capital for completing the project
● If you hold equity for property and require cash flow for the business
● Purchasing stock, inventory, payment of the ATO debts, and more
● If your house has a first mortgage loan and high exiting fees which makes refinancing impractical
● If the first mortgage has a fixed interest rate lower than the existing variable rates and the borrower does not want to refinance the lower interest rate.
How much amount is available in a second mortgage loan?
The total amount you can borrow on a 2nd mortgage loan is dependent on the 2nd mortgage lenders. But usually, the LVR or Loan to Value Ratio is lower than the first mortgage rate. LVR is the fund amount expressed in the percentage form on the total property value. For instance, if you are an owner of an asset worth 800000 dollars and have applied for a 60000 dollar second mortgage you can have a maximum LVR value of 75%.
You will get an instant approval for 2nd mortgages funds if you have a higher equity value on your asset. It can occur:
● If the property value has increased with time after taking out the first mortgage
● The borrower has already repaid some of the amount off the first mortgage loan.
Do you need 2nd mortgage funding, but the bank has said no to your application? Worry not, as LoansOne will always do their best to assist in obtaining the best funding option.
For more information, click the Apply Now button to make a No Obligation submission to see if you qualify, or call our office at 1300 52 44 72.
Frequently Asked Questions
Anywhere between $20k to $5mil and will depend on the equity available
Our second mortgage Lender will require you to have a registered ABN/ACN, have a business use for the funds as well as sufficient equity in real estate.
12 month terms with the possibility to extend.
No you can get a second mortgage from a different lender
This will depend on the type of bad credit you have and the lenders eligibility criteria
This will depend on your situation, give one of our staff members a call to discuss 1300 524 472.
Yes you can