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Second Mortgage Loan Finance


Second Mortgage Loan Finance

Second mortgages are sometimes required by borrowers when they require additional funds that their existing lender is unwilling to provide. Alternatively there are times when the existing mortgage is secured at a competitive rate and the borrower needs additional funds for business purposes and a second mortgage is a cheaper option than refinancing the entire facility.

Second mortgages can be structured to assist investors to acquire properties for either investment purposes or where “value-add” or development opportunities are available. Lightspeed can offer second mortgages up to 75% LVR with very competitive pricing.

Second Mortgage Loans - Pros and Cons

The Pros

While the common path is to refinance an existing loan to a different lender, a second mortgage in Australia can be helpful for circumstances such as:

  1. Your first mortgage loan was built on a fixed rate, meaning potential exit fees may apply.
  2. You are helping your children purchase their first home. You can guarantee their loan by carrying out 2nd mortgage finance on your property.
  3. If you are a developer a second mortgage could be just the ticket to secure fast funds in order to complete the project
  4. If you are in business and you need to pay down some debts purchase stock or just complete a quick renovation this could be a great option

The Cons

Second mortgage loans are used as a charge held over a property with an existing one against it. They are then ranked in order from which they were originally lodged.

When any debt isn’t paid as intended and the property is put on the market, the first agreement is paid back in full before any additional funds can be paid towards the 2nd mortgage finance. Because of these circumstances, this financial option is considered riskier for second mortgage lenders to approve, and thus, attract a higher interest rate.

Typically 2nd mortgage applicants enter these agreements for short term and have a clear plan on repayment so to avoid default issues

Choose from flexible terms

At Lightspeed , we offer a number of convenient options under our second mortgage finance service:

  1. Short-term: typically 3-6 months terms longer terms can apply . The registration of a caveat is required as interim security before the mortgage is registered, which allows for fast and expeditious settlement.
  2. Intermediate:. These loans are typically competitive in terms of rate and LVR%, but the borrower may need more funds for business-related matters. Therefore, a second mortgage loan can provide a more affordable way to access financial assistance rather than refinancing.
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What you can expect from Lightspeed

At Lightspeed , we have built our reputation on transparent, professional financial solutions and general advice , we offer fluid communications and a supportive style for our clients throughout Australia.

We offer a smooth process of application understanding that time is critical with many of our loans. Our team is always available and online to assist with all questions and concerns that may arise.

When you apply with lightspeed for a second mortgage, you can always expect:

A simplified, streamlined process

Instead of relying on banks for support, you can work side-by-side with our helpful team to secure a finance solution that works in your favour.

Fast approval time

While we need to tick boxes, we work as quickly as possible to approve your application. Know where you stand at all times. In most cases a same day letter of offer can apply with a same week settlement *

Intermediate or short-term finance

When you consult with one of our professional financiers you are assured of the best advice available, we pride ourselves in honest and detailed discussions – confidentiality assured.

Know what you can borrow in advance

All our financiers provide solid advice that ensures you know how much you are borrowing and to comfort you on a solution of finance that suits your situation.

Find out more with Lightspeed – contact us now on 1300 133 406.

Whether you are a small business owner, a developer or running a public company, our short-term loan providers have a solution to suit. We have the experience and expertise required to help businesses of all sizes. Our application and approval process are quick, and we aim to disburse the funds at the earliest, so our clients never have to spend time following up.