Second Mortgage Loans
A second mortgage loan is a great way to tap into your property equity for additional funds. In Australia, second mortgage loans are becoming more popular as more people discover how flexible and easy they are.
There are more than 600 non-bank lenders and financiers in Australia that offer a variety of services. The main challenge for this sector is fraud, including loan application fraud, identity fraud, and welfare fraud.
We at Maxiron Capital can help you with that. Our team of professionals have been in the business for decades so you can entrust us with your hard-earned assets. No more worrying about getting scammed!
Our team of experts will guide you through the process with ease. We offer second mortgage loans that are fast, smooth, and tailored to your financial needs.
Maxiron Capital: Who We Are
Maxiron Capital has been an Australian commercial lender since 2002. We provide flexible and low-rate lending solutions. As a subsidiary of the Maxiron Group, we have helped many clients get funding when the banks say no.
We specialise in alternative funding options, including second mortgage loans which are designed for property developers, business owners, and investors.
We also provide solutions for clients with bad credit. What sets us apart is fast funding, no income proof required, and personal service. At Maxiron Capital we understand financial complexity and we are here to provide solutions that work.
What Is a Second Mortgage Loan?
A second mortgage loan is a loan that is secured against a property that already has a primary mortgage. This financial solution allows property owners to tap into the equity in their property without refinancing the existing mortgage.
In Australia the lien position is important. The first mortgage lender has the first lien, and the second mortgage lender has the second lien. If the property goes into foreclosure the first mortgage is paid out first, then the second.
Before applying for a second mortgage, you need to calculate your home equity and the value of your property. Second mortgages are usually short-term loans running from 1 month to 1 year but with Maxiron Capital, we can stretch this up to 2 years.
Uses of a Second Mortgage Loan
Second mortgage loans are flexible and can be used for many purposes.
Property Development and Renovations
Homeowners looking to improve their property can use a second mortgage to fund big renovations or development projects. Maxiron Capital offers custom loans with flexible repayment options and fast funding so you can improve your property’s value quickly.
Business Growth
For business owners, business loans can provide the funds to grow their business or purchase new equipment. Second mortgages offer quick access to additional funds by using a home or real estate asset as collateral.
We specialise in flexible loans for business owners. You can get second mortgage offers in as fast as 3 business hours without the long approval process of traditional bank loans.
Debt Consolidation
A second mortgage can also be used to consolidate high-interest debts into one easy payment. Maxiron Capital’s second mortgage loans reduce your monthly payments and improve your cash flow. This makes finance management easy.
Investment in Property or Other Ventures
Investors can tap into their property’s equity with a second mortgage to fund the purchase of an investment property or other investment opportunities. Maxiron Capital offers competitive rates so you can act fast on opportunities.
Bridging the Gap
If you have a short-term financial gap, a second mortgage can be a temporary solution until more permanent funding is put in place. You can expect a fast turnaround and minimal paperwork with us.
Which Mortgage Is Right for You?
Choosing between a first, second or third mortgage depends on your financial situation, goals and the amount of equity in your property. A first mortgage is usually best for purchasing property, long term and lower interest rates.
A second mortgage is for those who need to access the equity in their property without refinancing their first mortgage. It’s a flexible and often cheaper way to fund renovations, business growth or other big expenses.
A third mortgage should only be considered if you have used up the equity in your first and second mortgage and need funds for short-term financial needs.
With higher interest rates and shorter terms, a third mortgage is for borrowers who are confident that they can pay the loan back quickly.
Comparing 1st, 2nd and 3rd Mortgage Loans
Interest Rates
One of the biggest differences between 1st, 2nd, and 3rd mortgages is the interest rate.
1st mortgages have the lowest interest rates because they are the most secure for the lender. The 1st mortgage lender has the first charge on the property so the risk of loss is minimal.
2nd mortgages have higher interest rates than 1st mortgages. This is because the 2nd mortgage lender only gets paid after the 1st mortgage lender in the event of a foreclosure. The increased risk for the lender means a higher interest rate for the borrower.
3rd mortgages have the highest interest rates of the three. As the 3rd lien holder, they are at the greatest risk. They are last in line to be paid in a foreclosure situation. The higher interest rates reflect the extra risk.
Loan Terms
1st mortgages have longer terms, often 15 to 30 years. The monthly payments are spread over a longer period as well. The long-term nature of 1st mortgages makes them perfect for purchasing homes or commercial properties, as they offer stability and predictability.
2nd mortgages have shorter terms, often 1 to 15 years. These loans are meant to be short-term solutions, so borrowers can access the equity in their property without refinancing their 1st mortgage. The shorter terms mean the monthly payments are higher than a 1st mortgage but the loan is paid back quicker.
3rd mortgages being high risk often have the shortest terms, usually 1 to 5 years. These loans are meant to be quick short-term solutions. They are often paid back quickly through refinancing, property sale or other financial arrangements.
You’d be surprised to know, however, that Maxiron Capital can extend all of these loans to a 24-month payment schedule, subject to approval. Let’s discuss Maxiron Capital’s Flexi Second Mortgage Loan in detail in the next section.
Maxiron Capital’s Flexi Second Mortgage Loan
Maxiron Capital’s Flexi Second Mortgage Loan is designed to cater to a wide set of needs. It falls under our Flexi Funding Solution options.
Here are more details about it:
Loan Size | LVR | Term | Benefits |
$250,000 to $3,000,000 | Up to 80% | 1 to 24 months |
|
Repayments can be monthly, lump sum, or a combination of your choice. Maxiron Capital also has funding solutions for unique situations. These include:
- Flexi Non-PR
- Hybrid Building Loan
- Flexi Residual Stock
- No Doc Commercial Property Loan
The Loan Application Process at Maxiron Capital
Applying for a loan with Maxiron Capital is an easy 3-step process:
- Get A Quote – Contact our lending team to discuss your financial requirements, get a quote, and submit your application for assessment.
- Get Approved – Once assessed, you’ll receive a letter of approval. Review and sign it according to the terms and conditions.
- Deal Settled – Once signed, we’ll start the settlement process and the funds will be disbursed.
Our process is designed to get you the funds you need as quickly as possible with minimal fuss.
Why Choose Maxiron Capital for Your Second Mortgage Loan?
Maxiron Capital is the lender of choice for business owners, property developers and investors looking for fast, flexible and customised funding. With over 20 years of experience, we understand second mortgages and are committed to great service and competitive rates.
Custom Financing
Our loans are designed for our clients who can’t get funding through regular channels. For property development, business cash flow, debt consolidation and more.
Direct and Quick Funding
Maxiron Capital is the lender – not a broker or referrer. That means our approval and settlement process is fast and direct so you get the funds when you need it.
Flexible Terms
We have competitive rates and flexible terms that can be adjusted to your situation so you can manage your repayments more easily.
Unparalleled Experience and Knowledge
Since 2002, Maxiron Capital has been a well-known name in the Australian lending market. We are acknowledged for our industry knowledge and customer service.
FAQs
Yes, if you have equity in your property, you can get a second mortgage. Your borrowing power and how much you can access will depend on the current value of your property minus any outstanding mortgage balances. It is important to compare quotes from different mortgage lenders to understand the repayment terms and interest rates available to you.
Second mortgages have higher interest rates than first mortgages because they are riskier for lenders. This means higher monthly payments so you need to weigh the pros and cons before you proceed.
Maxiron Capital offers second mortgages from $250,000 to $3,000,000.
Once settled, the interest rate is fixed so you have certainty and stability in your repayments.
Yes, borrowing through a Self-Managed Super Fund (SMSF) is regulated differently and these cases are less common.
