Second Mortgage Finance
Access equity behind your existing bank mortgage - without refinancing. Vía Private provides second-ranking finance across residential, commercial, industrial, and retail property, for borrowers who have equity trapped behind a first mortgage and need additional capital.
Product Parameters
Loan size (Residential)
$500,000 - $7,500,000
Loan size (Commercial / Industrial / Retail)
$1,000,000 - $7,500,000
Max combined LVR (Metro - Residential)
Up to 75% (1st + 2nd combined, incl. capitalised interest and fees)
Max combined LVR (Metro - Commercial / Industrial / Retail)
Up to 65% (1st + 2nd combined)
Max combined LVR (Regional - Residential)
Up to 65%
Max combined LVR (Regional - Commercial / Industrial / Retail)
Up to 50%
Max combined LVR (Destinational - Residential)
Up to 55%
Minimum term
6 months
Security position
Second registered mortgage, PPSR/GSD, personal guarantee, share security
Senior lender requirement
Must be a bank, ADI, or ADI-like institution (e.g. Pepper, Resimac, Liberty) - not a private lender
Establishment fee
2.10% of loan amount
Rollover fee
0.25% if term is extended
Valuation
As-is basis only
All parameters shown are indicative and based on standard scenarios. We may work outside these parameters depending on the strength of the deal. Contact us to discuss your specific scenario.
How it works
1
Submit the scenario
Provide the security address, current property value, existing senior lender details (lender name, balance, and limit), the loan amount required, and the borrower's exit strategy. We need to understand the combined LVR position before we can give indicative terms.
2
Indicative terms - usually same day
We confirm the combined LVR against our lending criteria and provide indicative terms. Because we're working behind an existing bank facility, we also need to confirm the senior lender is acceptable (bank, ADI, or ADI-like) before proceeding.
3
Formal offer and settlement
We issue a formal Letter of Offer. The borrower instructs their solicitor. We coordinate the inter-lender consent process with the senior lender - typically a Deed of Priority. Settlement usually occurs within 5-10 business days of a complete application.
Is this the right product for your client?
This suits:
- •Equity gap funding for developers: bank construction facility is at 65% of Total Development Cost and the developer is short on equity - Vía Private provides a second mortgage behind the bank
- •Deposit funding: buying at auction with equity in an existing home behind a bank mortgage - the bank won't increase quickly, so Vía Private releases the deposit funds
- •Business working capital: property worth $3m with a $1.2m bank mortgage - needs $400k for business working capital without refinancing the whole facility
- •Tax debt clearance: ATO debt needs to be cleared but the client is locked into a low fixed-rate bank mortgage - Vía Private provides a second mortgage to clear the debt without disturbing the first
- •Divorce / family law settlement: needs to pay out a former partner and the bank cannot increase quickly enough
- •Renovate and refinance: property worth $1.5m with a $600k bank mortgage - renovate to increase value with Vía Private second mortgage, exit via bank refinance at the higher value
- •Inter-generational wealth transfer: parents releasing equity behind their bank mortgage to fund a child's deposit
- •Investment property top-up: investor is at the bank servicing ceiling - Vía Private provides a second mortgage over existing properties to fund a new deposit
- •Off-the-plan valuation shortfall: bank valuation came in below the contract price - Vía Private provides a second mortgage to bridge the gap to settlement
- •GST or CGT payment: large tax liability is due before sale proceeds arrive - Vía Private provides a short-term second mortgage
- •Construction cost overrun: bank will not increase the construction facility - Vía Private provides a second mortgage for the additional costs
- •Business expansion capital: commercial property with a bank first mortgage - business needs capital for expansion, fitout, or equipment
- •Industrial equipment purchase: owner-occupier needs $1-2m for new machinery - Vía Private provides a second mortgage against the industrial property
- •Retail tenant incentive funding: landlord needs capital for fitout contributions to attract or retain a tenant
- •Deposit for new acquisition: using equity in an existing bank-financed commercial asset to fund the deposit on a new purchase
- •Shareholder buyout: co-owners disagree and one needs to buy out the other - Vía Private funds the buyout via a second mortgage
This product is not suitable for:
- •Second mortgage positions behind other private credit funds or non-bank lenders - the senior must be a bank, ADI, or ADI-like (Pepper, Resimac, Liberty)
- •Standalone land or pre-DA property (no construction site without practical completion)
- •Active construction projects where the senior lender is a construction facility - see our Mezzanine product instead
Frequently Asked Questions
What is a second mortgage?
A second mortgage is a loan secured against your property that sits behind your existing (first) mortgage. If the property were sold or the loans enforced, the first mortgage lender gets paid out first, then the second mortgage lender. Because the second mortgage lender takes on more risk, the interest rate is higher than a first mortgage. Your existing bank doesn't need to be paid out or disturbed - the second mortgage simply adds a new loan behind them.
Why does a second mortgage cost more than a first?
Position risk. In the event of a default, the first mortgage lender has first call on the property proceeds. The second mortgage lender only gets paid after the first is satisfied. If property values have fallen, the second lender may recover less than the full debt. That additional risk is priced into the rate.
How is the combined LVR calculated?
Combined LVR is the total of all debt secured against the property divided by the property value. For example: property value $2,000,000 / bank first mortgage $1,000,000 / Vía Private second mortgage $300,000 = combined LVR of 65%. All capitalised interest and fees are included in this calculation.
What lenders qualify as a senior lender?
The senior lender must be a bank, an APRA-regulated ADI (Authorised Deposit-taking Institution), or an ADI-like non-bank lender such as Pepper Money, Resimac, or Liberty Financial. We do not take second mortgage positions behind other private credit funds, non-bank private lenders, or family/related-party arrangements.
Will my client's bank need to consent?
Yes. Taking a second mortgage behind an existing first mortgage requires the first mortgagee's consent. This is formalised via a Deed of Priority (or inter-lender deed). We manage this process - your client's solicitor and our solicitor coordinate the documentation. Most mainstream lenders and ADI-like lenders have standard processes for this.
Got a deal that needs a private lender?
Submit your scenario and we'll come back with an indicative position - loan amount, LVR, term - within 24 business hours. If it doesn't fit, we'll tell you that too.
Submit a Second Mortgage Deal