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Behind Existing Bank · 6-36 Months

Second Mortgage
Commercial Loans

Name: Mortgagefy
Address: Sydney, NSW, AU
Telephone: +61432634648
Price range: Free

By the Mortgagefy Team · Credit Rep 532656 of ACL 348324 · Published 2026-10-15 · Last reviewed 2026-10-15

Formally registered second mortgage behind your existing bank - cheaper than caveat, longer term, and lets you access the equity without refinancing your main facility.

Start Your Free Assessment 0432 634 648

Free Business & Commercial Assessment

Takes under 3 minutes. We'll match you with the right lender for your situation.

Who this is for

Business owners with equity in commercial or residential property who want to borrow without refinancing their first mortgage.

Significant equity in commercial or residential property
First mortgage has attractive terms you don't want to lose
First mortgage has break fees that make full refinance uneconomic
Needing $100k-$5m for 6-36 months
Specific project (acquisition, equipment, working capital) with defined exit

The real challenge

A second mortgage sits behind the existing first mortgage - the first-mortgage lender's claim ranks ahead on any enforcement. Because the second-mortgage lender takes more risk, pricing is higher than a first mortgage - but much lower than a caveat loan, and the term can be 6-36 months versus 1-6 for caveat.

Key consideration: most first-mortgage lenders have mortgage docs requiring their consent to any subsequent interest. We handle this - often by arranging a Deed of Priority between the first and second lender.

How Mortgagefy helps

Specialist second-mortgage lenders. Private credit funds and non-bank commercial lenders who routinely take second-mortgage positions.
Deed of priority arrangements with your first-mortgage lender where required.
Honest LVR assessment. Combined debt (first + second) typically capped 65-75% of valuation. We tell you upfront what you'll qualify for.
Exit timing. Second mortgages suit 12-36 month projects. We plan the refinance exit from day one.

Need to model repayments first? Try our Sydney home-loan calculators for an indicative figure.

How it works

Initial brief

Equity available, first-mortgage lender + balance, loan purpose, timing, exit.

Lender shortlist

2-3 specialist second-mortgage lenders matched to the deal size and purpose.

First-lender consent

We approach your first-mortgage lender for consent and a Deed of Priority if required.

Settlement

Typically 2-4 weeks for a second mortgage, longer where DoP negotiation is needed.

Get a personalised answer in 2 minutes

Free, no obligation. We'll match you with the right lender for your situation.

Frequently asked questions

What's a second mortgage?

A formally registered mortgage ranking behind an existing first mortgage. The second lender's claim ranks after the first lender on any enforcement. Formal registered interest with its own loan documents.

Do I need my first lender's consent?

Usually yes. Most commercial and residential mortgage documents require the first lender's consent to any subsequent interest. We arrange a Deed of Priority with the first lender to make the second-mortgage lender comfortable.

What LVR can I get on combined debt?

Typically 65-75% of valuation for combined first + second. So on a $2m property with a $1m first mortgage, a second mortgage might advance $300k-$500k (65-75% minus the first).

What's the typical cost?

Second mortgage commercial typically prices 2-4 percentage points above comparable first mortgage pricing. Still much cheaper than a caveat loan - and term can be 6-36 months versus 1-6 for caveat.

Second mortgage vs caveat - which should I use?

Caveat: faster (3-7 days), simpler, lower LVR, higher cost, 1-6 month term, no first-lender consent needed. Second mortgage: slower (2-4 weeks), needs first-lender consent, higher LVR possible, lower cost, 6-36 month term. Second mortgage usually better for longer or larger needs.

What happens if I default?

The second lender can enforce their mortgage - typically through a court-ordered sale of the property. The first mortgage is paid first from sale proceeds; the second recovers from what remains. Rare in practice when exit is clearly planned.

Get your free second mortgage assessment

Formally registered behind your existing bank. 6-36 month term, cheaper than caveat. We handle first-lender consent.

Start Your Free Assessment Call 0432 634 648

Related guides

Caveat Loan Australia

Faster but higher pricing, 1-6 month term.

Short-Term Business Loan

General short-term bridging category.

Business Loans Sydney

Longer-term unsecured and secured facilities.

Development Finance Sydney

For developers using mezzanine stack.

Commercial Property Loans Sydney

First-mortgage commercial refinance.

Business Loan to Pay Out ATO Debt

ATO payout as a specific use case.

Information checked October 2026. This information is general in nature and does not take account of your personal objectives, financial situation or needs. Business, commercial and development finance eligibility, pricing and documentation varies by lender and changes frequently. Confirm current requirements with your chosen lender and seek professional advice before applying. Mortgagefy — Credit Representative 532656 of ACL 348324.

Second MortgageCommercial Loans