Need $5M+ fast but stuck with bank’s red tape?
Second mortgage loans from Formation Finance are designed to unlock the value of your property to fund business growth, development projects, or strategic investments—while keeping your existing first mortgage.
Designed for property developers, professional investors, and business owners, our second mortgage solutions offer fast access to capital with flexible terms and lending structures.
A second mortgage loan is secured against the equity in your property and ranks behind your first mortgage. It allows you to raise capital while maintaining your existing loan structure—ideal for bridging finance, working capital, or equity release for business purposes.
Unlike traditional bank loans, our second mortgages are driven by asset value and project merit, not income and expense.
Our second mortgage options fall under our flexible private lenders loans solutions and are ideal for those seeking short-term property loans with speed and adaptability.
✅ Loan Details at a Glance:
Loan Amount: $100k 5M+
Interest Rates: From 15% p.a.
Intrest repayment: interest only, capitalised
LVR: up to 75%*
Term: 3–24 months (short-term agility)
Security: Second mortgage + guarantees
Property Types: Residential, Commercial, Development Sites
*Dependent on the asset location and strength of the applicant
Our clients commonly use second mortgage finance to:
💼 Fund development projects or site acquisitions
🏗️ Bridge short-term liquidity gaps between construction phases or settlements
📈 Inject working capital into growing businesses
💸 Consolidate business debt or refinance private lending
📊 Access capital for investments without refinancing the first mortgage
“Our Sydney client secured a $1.4M second mortgage in 3 days to bid on a development site while finishing current project – new site secured while current project gets sold at a price 20% higher than rushed sale”
Banks drown you in paperwork. We focus on asset value, not credit history.
No income checks – Ideal for trusts/companies with complex cash flow
No credit checks – Past defaults? Irrelevant if your equity stacks up
Funds in 7 days – Direct access to family office lenders cuts delays
Why Get a Second Mortgage Loan Rather Than Refinance:
Keep your existing cheap first mortgage for long term
Only pay higher interest rate on second mortgages’ smaller dollar value
Save on big upfront fees and paperwork from refinance
A second mortgage loan is a secured loan that sits behind your primary mortgage and allows you to access the equity in your property without refinancing. It’s commonly used for business purposes, such as funding property developments, expanding investments, or injecting working capital into a business.
It depends on your situation. Refinancing replaces your existing loan and may offer better rates, but it often involves longer approval times, full credit checks, and income verification. It’s ideal if you’re looking for a long-term loan restructure.
A second mortgage, on the other hand, lets you access equity quickly without disturbing your current mortgage. It’s typically faster, more flexible, and better suited for short-term business, investment, or development funding—especially if you need short-term funding and need it quickly.
Second mortgage loans are ideal for:
Property developers needing short-term capital for acquisitions or construction
Professional investors looking to leverage existing equity
Business owners who require funding without disrupting their first mortgage
If you’re asset-rich but need quick liquidity, a second mortgage could be a strategic option.
Loan amounts typically range from $100,000 to $5 million+, depending on the equity available, the property type, and the loan purpose. In some cases, higher loan amounts can be structured for strong projects or portfolios.
We accept a wide range of security types, including:
Residential (investment or owner-occupied)
Commercial (offices, retail, warehouses)
Industrial
Development sites (with or without DA)
Multiple securities can also be bundled to maximise your borrowing capacity.
We can settle most second mortgage loans within 5–10 business days, and urgent deals can be processed in as little as 48 hours, depending on the complexity and documentation provided.
While requirements vary depending on the deal, we typically require:
Property details & estimated value
First mortgage statement
Corporate borrowing entity (company/trust)
Loan purpose and proposed exit strategy
Yes. Second mortgage loans are commonly used for land banking, bridging between project stages, or even settling purchases prior to construction finance. They provide strategic flexibility for time-sensitive opportunities.
