Short Term Financial Solutions

A second mortgage can be a quick business cashflow solution, a quick cashflow injection or allow a consumer to consolidate debts and keep angry creditors at bay. As a market leader in facilitating private mortgage products, we are a specialist second mortgage facilitator and can facilitate a second mortgage to suit your specific needs with a fast and easy turnaround.

How can we provide fast short term finance?

We can lend you short term funding on asset security, even if you already have a mortgage. This is because a property can have multiple mortgages secured against it. The loan that is registered first is called the first mortgage. The loan or mortgage that is registered second is called the second mortgage and is subordinate to the first mortgage. There is no limit to the number of mortgages that can be registered over the title to a security property.

In most cases a second mortgagee will require an agreement with the first mortgagee that regulates the priority amount or amount secured and payable under each loan. This agreement is called a Deed of Priority or Priority Agreement.

What are the applications of asset based short term finance?

Small to medium enterprise will find short term finance to be especially useful for dealing with cash flow issues such as outstanding invoices, or refinancing to ensure business runs smoothly. While overdraft facilities offered by the banks may provide you with daily flexibility, they also have a higher risk factor due to their variable rate. If you need a loan upwards of $5000, an overdraft could be extremely risky for your business especially if you are uncertain exactly how short term the loan will be. This means a second mortgage can be a much more suitable arrangement for a quick injection of funds.

Builders or property developers can use short term finance products like second mortgages or caveat loans to fund expenses surrounding their development projects. This can be ideal because you can secure the property with funds from your development and you have a fixed rate payment plan to follow or the interest can be prepaid or capitalized from the loan, which promotes certainty for your project.

How much can I borrow?

The minimum loan is usually $20,000 and the maximum loan amount is usually $800,000. However larger amounts are available and we will consider a larger amount upon application. Loan terms are generally between 1 and 6 months with longer terms available upon request A Private Second Mortgage Lender will generally lend upto 70-75% of the value of the security property (depending on the type and location of the property).