What is a Second Mortgage? A second mortgage speaks for itself really; as the name suggests, it’s a loan secured against real estate property that already has one mortgage attached to it. Therefore by receiving a second mortgage you will still have your original mortgage lender on the title of your real estate property, and the lender of your second mortgage will be added alongside. Second mortgages are called a subordinate because, if the loan was to go into default, the first mortgage gets paid back before the second mortgage. Therefore, a lender of a second mortgage has a higher risk and this can result in a second mortgage having a higher interest rate than a first mortgage. When is a second mortgage a good option? A second mortgage is a type of loan that is suitable when you need money in a hurry, or when you have insufficient cash flow to cover your current financial requirements. A second mortgage allows you to access the equity you have in your home. By using your home equity to secure your second mortgage, means that the loan amount you need can be approved and paid into your account in as little as 48 hours. A caveat loan is similar to second mortgage, and bridging finance is another popular alternative to obtain short term finance fast. The application and approval process is simple, painless and fast. Second mortgages start from as little as $5,000 and can stretch to $500,000. However the total amount you can borrow as a second mortgage is determined by three key factors:
NSW Mortgage Corp’s mortgage specialists can evaluate this with a quick phone call and can provide approval over the phone. How to Apply for a Second Mortgage Applying for a second mortgage is easy and we’ll handle the paperwork for you. To get the ball rolling, simply fill in the enquiry form on the right and we’ll contact you with the details.