Second mortgage
A second mortgage is registered security that ranks behind an existing first mortgage on the same property, giving the second lender recourse to the equity above the first lender's debt.
Second mortgage, explained.
The first mortgagee usually has to consent, and its debt is repaid first from any sale. Second mortgage lenders assess the combined borrowing against the property and set their lending terms accordingly.
Second mortgages are used to release equity without disturbing a favourable first loan, to fund a business or a development stage, or to bridge to a refinance. They are commonly provided by private lenders.
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The Learn section is general information about lending in Australia. It does not take account of your objectives, financial situation or needs, is not credit assistance, and is not tax, legal or financial advice. Lender policies, government schedules and regulations change; check the current position with the relevant body or with us before relying on it.
