A second mortgage bears more risk for the lender than a first mortgage lender. This is because mortgages are ranked in the order they were issued, and the mortgages that were issued earliest gains precedence over subsequent issued mortgages. This means that in the event of a default by the borrower, the first mortgage owner gets primary rights of the secured property. They are also entitled to be financially renumerated and satisfied before the second mortgage lender. Second mortgages are thus more expensive to offset the high risk.
Eric from Geelong, Melbourne owns an automotive repair company in the outskirts of Melbourne City. Eric saw that a renovation of their existing business property was necessary, and was due for an upgrade which would help improve operations through better access to specialized equipment. Maxiron Capital provided Eric an immediate injection of short-term cash through a 2nd mortgage. Eric was nearing an end of his first mortgage payment, and was eligible for a 2nd mortgage solution.
There are no limits on what you can use your second mortgage loans for. Our second mortgage loans Australia ensures that you as a new business owner established business owner or even a commercial property user achieve your full potential. Below are some of the uses of second mortgage loans:
To apply for a second mortgage loan with us here at Maxiron Capital, it’s easy. We value our customer’s time, and have simplified the application process so that it is both easy and quick to fill out.
Fill out our pre-approval form - it takes only 5 minutes!
Receive an immediate decision - upload a few documents for verification
Receive your funds in as quick as 1 working day
By choosing Maxiron Capital’s second mortgage solution, you will be entitled to receive funding as low as $100,000 and as much as $2,000,000; all in which to suit your business objectives.
At Maxiron Capital, we place upmost pride in ourselves to deliver our customers a fast and seamless process. For a low approval or highly mortgage property, a 2nd mortgage will not be required. For a higher loan amount, should the property contain sufficient equity, a 2nd mortgage will apply.
Refinancing consists of a longer processing time with extensive documents needed to be provided; making approval much stricter. A 2nd mortgage on the other hand is a much better option if fast approval is necessary. It also allows for tax benefit deductions which is not permitted with refinancing home loan option.
An owned property under the name of the business or business owner, can be used to secure multiple mortgages. However, each mortgage is ranked, at the time they were mortgaged. The mortgage that is the highest ranked (1st mortgage) has the most priority, and in the event of a default on the behalf of the borrower, they become the primary owners of the secured property. Until they have been satisfied, do subsequent mortgage lenders of the next rank (2nd mortgage) become attended.
Taking a second mortgage means that you are applying for another loan with the same property as security. It allows you to borrow significant amount as it is secured by your home. However, a second mortgage is ranked behind your first mortgage as it ranked in the order they were issued. In this case, if your property is sold and your first mortgage will be repaid before your second mortgage.