ACCESS EQUITY WHILE RETAINING YOUR FIRST MORTGAGE
A second mortgage is registered behind the existing first mortgage, allowing eligible borrowers to access available equity without replacing their current facility.
A second mortgage, sometimes described as a 2nd loan mortgage, can support working capital, tax obligations, property improvements and time-sensitive business needs. Pronto Funds can work directly with business owners, investors and brokers to assess the available equity, existing debt, loan purpose and overall strength of the transaction.
Pronto Funds
LOAN SPECIFICATIONS
Loan Feature | Details |
Loan Amount | $200,000 to $10 million |
Loan Term | 1 to 12 months |
Maximum LVR | Up to 85% |
Security | Residential, commercial or other eligible real estate |
Loan Position | First or second mortgage |
Indicative Decision | Within 24 hours |
Settlement | Ability to settle within 48 hours |
Rates | From 1.2% per month |
WHAT WE CONSIDER WHEN ASSESSING A SECOND MORTGAGE
When assessing a second mortgage loan, Pronto Funds considers the available property equity, existing first mortgage debt, combined LVR, property type and location, loan purpose and proposed exit strategy.
We assess each transaction on its individual merits and communicate the requirements clearly from the outset, giving borrowers and brokers greater clarity on what is needed to progress towards settlement.
A BROADER APPROACH TO SECOND MORTGAGE LENDING
Traditional lenders often rely heavily on standard credit policies and servicing requirements. Pronto Funds can take a broader view of the available equity, security and commercial purpose, allowing us to consider second mortgage applications that may fall outside conventional lending criteria.
Credit history forms part of the assessment but does not determine the application on its own. We also consider the strength of the security, overall transaction and proposed exit strategy when assessing a second mortgage loan.
SECOND MORTGAGE OR REFINANCE?
Refinancing replaces the existing first mortgage with a new facility. A second mortgage leaves that loan in place and adds a separate, lower-ranking facility against the available equity.
Second mortgage loans for business owners can provide a targeted way to access capital where the existing first mortgage remains suitable. This can be particularly useful for business owners, investors and brokers seeking funding without refinancing the existing facility.
ACCESS EQUITY WITH CLEAR NEXT STEPS
Pronto Funds assesses second mortgage applications directly, considering the available equity, existing loan position, commercial purposes and proposed exit strategy.
We outline the requirements and next steps from the outset, giving borrowers and brokers a clear understanding of what is needed to progress the second mortgage loan towards settlement.
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Frequently Asking Questions
What is the difference between a first and second registered mortgage?
A first registered mortgage holds the primary position over the secured property and ranks ahead of any later mortgage. A second registered mortgage is registered behind the first mortgage, allowing eligible borrowers to access available equity without replacing their existing first mortgage.
When is a second registered mortgage suitable?
A 2nd registered mortgage can provide access to available property equity for working capital, property improvements, investment opportunities and other approved business purposes, while allowing the existing first mortgage to remain in place.
Does my first mortgage lender need to know?
Requirements will depend on the terms of the existing loan and the first mortgage lender’s policies. In some circumstances, consent from the first mortgage lender may be required before a second registered mortgage can proceed.
Why choose a second registered mortgage instead of refinancing?
A second mortgage allows eligible borrowers to access available equity while retaining their existing first mortgage. This can be useful where the current facility remains suitable and the borrower requires additional capital without refinancing the existing loan.