Refinancing an Msquared Capital loan when the exit needs more time
A practical guide for borrowers with an Msquared Capital loan whose term is ending before the exit is ready, covering extensions, refinance timing and what a new lender needs.
Msquared Capital is a Sydney-based private credit manager providing short-term loans secured by property. This guide is for the borrower whose exit has moved, so the loan is getting close to the end of its term and the sale, bank refinance or lease-up needs longer than is left.
Ask about an extension first
Your current lender already knows the property and the borrower, so an extension is usually the quickest and cheapest way to buy more time. Ask for the offer in writing, including the extension fee, any new valuation it needs and the rate, so you can compare it properly with a refinance. If the extension isn't available, or the new terms don't fit the time you need, a refinance is the next step.
When a refinance makes sense
- The exit needs more time than an extension allows. If the remaining stock, the sale or the bank refinance is now 12 months or more away, a new facility with a term that fits the plan avoids a series of short rollovers.
- You need more money. If the property has gone up in value or you've added security, a new lender may release more than the current facility.
- The structure has changed. You might want to move from a second mortgage to a first, or combine two loans into one, which we cover in consolidating a caveat loan or second mortgage.
How the refinance works
- Get a payout figure from your current lender with a daily rate, and check your loan agreement for any minimum term, early repayment fee and notice requirement.
- Send the scenario to the new lender with the property, the payout, any extra money you need, and the exit.
- Accept indicative terms and instruct the valuation.
- Give notice and sign the discharge authority once the new loan has credit approval.
- Settle, with the new lender paying out the old loan and registering its own mortgage on the same day.
The full process, including the costs on both sides, is in refinancing a private loan to another private lender. If the loan is already past its expiry date, read refinancing a private loan that's already in default first, because default interest changes the numbers quickly.
What we'll need from you
- The property address, type and an idea of value
- The current payout figure or latest statement
- A copy of the existing loan agreement
- Why the exit has moved, in a sentence or two, and what the new timeline is
- Any evidence for the exit, like a sale contract, agent's appraisal or bank approval
How we do it
Vía Private lends first mortgages from $1M to $20M and second mortgages from $500K to $7.5M, for business and investment purposes, to companies and trusts, secured by property on the East Coast, for terms of 6 to 36 months. We can usually give indicative terms within 24 hours and settle in 5 to 10 business days once the valuation is in, and we set out the total interest, every fee and the exact payout at the end before you sign.
If your Msquared loan is coming to the end of its term and the exit needs longer, send us the scenario.
Vía Private is not affiliated with Msquared Capital. Msquared Capital is named only to describe a refinance scenario, and nothing here sets out its current products, terms or pricing, or compares them with ours. Check your own loan agreement for the terms that apply to your loan. Vía Private is an Australian non-bank private credit lender providing property-secured commercial loans to companies and trusts for business and investment purposes. All lending is subject to credit approval and valuation. General information only, not financial or credit advice.
Frequently asked questions
Should I ask for an extension first?
Yes. Your current lender already knows the property and the borrower, so an extension is usually the quickest and cheapest way to buy time. Get the offer in writing, including the fee, the rate and any new valuation.
What if the exit is now more than a year away?
That's when a refinance usually beats an extension. A new facility with a term that fits the plan avoids a series of short rollovers, each with its own fee.
Can I move from a second mortgage to a first?
Sometimes, if the combined position and the value support a single facility. We cover when that's worth doing in our guide to consolidating a caveat loan or second mortgage.
What if my loan has already expired?
Read the in-default guide first. Default interest and enforcement costs eat into equity quickly, and that's what decides whether the refinance still fits inside a lender's loan-to-value limit.