Why Second Mortgages?

If you currently have a first mortgage on your property and it’s on a low or fixed interest rate, the borrower can obtain a second mortgage funding option rather than refinancing the current first mortgage.  Second Mortgages are much faster (especially LoansOne second mortgages), as opposed to going through the full refinance process that takes several months.

Apply for a second mortgage? It’s so simple with LoansOne

Are you interested in applying for a fast 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 favourable 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 a fast Second Mortgage from LoansOne?

The borrower of the second mortgage business loan can use this funding 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
● We can arrange No-Payment periods of up to 6 months
● We fund any worthwhile business purposes

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Reason for the popularity of second mortgages LoansOne

At LoansOne, our financial expert thoroughly reviews 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 perfect for you?

Second mortgages are perfect for you if..

● If you are a developer or a builder and need capital to complete the project
● If you hold equity for property and require urgent cash flow for the business
● Purchasing stock, inventory, payment of the ATO debts, and more
● If your financials aren’t up to date, refinancing your home loan or first mortgage loan is 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.

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How much can I borrow on a second mortgage business loan?

The total amount you can borrow on a 2nd mortgage business loan solely depends on the equity you have in your property. But usually, the combined LVR or Loan to Value Ratio is lower than 75%, we can fund you.

What is LVR – Loans to Valuation Ratio?

LVR is the combined amount of debt (our 2nd mortgage loan and your current 1st mortgage loan combined) divided by the value of the property.   For example, if you own a house worth $1,000,000 and have a first mortgage with your bank of $400,000 and have applied for a $200,000 second mortgage, your combined debt will be $600,000, which is a 60% LVR.

We can give Instant Approval over the phone on our Second Mortgages.

How do I know if I qualify for a Second Mortgage?

● If the property value has increased with time after taking out the first mortgage, you may have a lot of extra equity in your property.
● Over time, you have probably repaid some of the debt on the first mortgage loan, so this is another way you have created so much more equity in your property.

Do you need second mortgage funding, but other second mortgage lenders have rejected your application? CALL US.  LoansOne will always do its best to assist you in obtaining the best funding option. We use our own funds, plus we have access to other private sources of funds all over Australia.

For more information, click the Apply Now button to make a No-Obligation submission and see if you qualify, or call our office at 1300 52 44 72.