Scenario
Second Mortgage for Business Purposes
A second mortgage releases equity from a property for business or investment purposes without refinancing the existing bank loan. Vía Private lends $500,000 to $7,500,000 in second position behind a bank or ADI-grade senior lender, at up to 75% combined LVR in metro locations, with indicative terms within 24 business hours.
Who this suits
- ✓A business owner whose property has equity behind a bank mortgage and who needs working capital, fitout, equipment, or expansion funding
- ✓A borrower locked into a low fixed-rate first mortgage who needs additional capital without breaking it
- ✓A company facing an ATO, GST or CGT liability that must be cleared before sale proceeds or a refinance arrive
- ✓An investor at the bank servicing ceiling who needs a deposit for the next acquisition
- ✓A shareholder or co-owner buyout where one party needs to fund the purchase of the other’s interest
How it typically runs
Step 1
Scenario and combined LVR check
The broker submits the scenario. The first check is the combined LVR position and whether the senior lender qualifies (bank, ADI, or ADI-like). Indicative terms usually come back the same business day.
Step 2
Offer and priority deed
A formal Letter of Offer is issued and the inter-lender consent process runs with the senior lender, formalised through a Deed of Priority. Vía Private coordinates this alongside the borrower’s solicitor.
Step 3
Settlement
The second mortgage registers and funds are advanced, typically within 5 to 10 business days of a complete application. The bank facility continues untouched.
What we need for indicative terms
We aim to give indicative terms within 24 business hours of a complete submission.
- ✓Security property address, type, and current value (valuation or recent sale evidence)
- ✓Senior lender details: lender name, current balance, and approved limit
- ✓Loan amount requested and desired term (6 to 36 months)
- ✓Borrower entity structure and brief background
- ✓The business or investment purpose of the funds
- ✓Exit strategy: sale, refinance, or a defined liquidity event
Common questions
Does the existing bank loan have to be refinanced?
No. The bank first mortgage stays exactly where it is. The second mortgage registers behind it, with the bank consenting via a Deed of Priority. That is the point of the structure: capital is released without disturbing a first mortgage the client wants to keep.
How much equity can be released?
The ceiling is a combined LVR of 75% in metro locations, calculated as all secured debt (first plus second mortgage, including capitalised interest and fees) divided by the as-is property value. Loan sizes run from $500,000 to $7,500,000 against residential security and $1,000,000 to $7,500,000 against commercial.
Does it matter who the first mortgage lender is?
Yes, this is a hard requirement. The senior lender must be a bank, an APRA-regulated ADI, or an ADI-like non-bank lender such as Pepper Money, Resimac or Liberty Financial. Positions behind private credit funds, other private lenders, or related parties do not qualify.
Can the borrower be an individual?
Second mortgage lending at Vía Private is to companies and trusts for business or investment purposes. It sits outside the National Credit Act, so it is not available for personal, domestic or household purposes.
Have a scenario like this?
If your client has equity behind a bank facility and a clear business purpose, submit the scenario and we will confirm the combined LVR position within 24 business hours.