Know the rate, fees and valuation cost before you commit
A $30 million funding line
We have a $30 million funding line specifically set aside as a non-bank facility, so the capital is ready when you need it.
A letter of offer, usually within 24 hours
We review your application and aim to provide a letter of offer within 24 hours of your enquiry, with the rate, fees and valuation cost set out before you commit to anything.
The valuation, quoted first
We quote the valuation cost before it's ordered, and you only proceed if you're happy with the pricing. Every property is valued at fair market value by our panel of professional valuers. Once you accept and the valuation is complete, most loans settle within 48 hours.
You speak directly with the decision maker.
Deal example
Hunters Hill, Sydney, NSW · $680,000 · Equipment purchase for a logistics business
Our client needed 4 prime mover trucks to meet new contract demand. Despite pre-approval elsewhere, traditional finance wouldn't assist due to existing finance commitments. Using equity in his Hunters Hill residential property, we provided a 5-month second mortgage and the trucks went to work.
What is a second mortgage?
A second mortgage is a loan secured against a property that already has a mortgage on it. At Vivian Locke Capital it's registered on the title behind your existing bank loan, which stays exactly as it is. On residential security we lend up to 75% of the property value, less what is owed on the first mortgage; commercial and land are assessed case by case. Loans run from $100,000 to $10,000,000, from 1.75% per month, interest only, for 1 to 24 months, to Pty Ltd companies only. Every property is valued before funds are released.
Release equity for equipment, ATO debt or the next project
Commercial funding for Australian companies, released from the equity in property they already own.
Working capital
Bridge cash flow gaps and keep your business running. The loan is interest only, with no principal repayments during the term.
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ATO and BAS debt
Clear ATO or BAS debt against the equity in your property. Clearing tax debt is one of the most common uses of our funding, and it's assessed with a serviceability letter from your accountant.
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Equipment purchase
Buy vehicles, machinery or equipment your business needs. One deal example funded 4 prime mover trucks for a logistics business.
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Property purchase
Settle a purchase before other finance is ready, secured against residential, commercial or land property you already own.
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Business debt consolidation
Bring several business facilities into one interest-only loan, repaid from your stated exit at the end of the term.
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Equity release
Unlock equity in your property for business purposes. Your first mortgage and its rate stay as they are.
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Development finance
Complete a build or fund the next stage of a project. The property is valued at fair market value before funds are released.
Get your rate
Bridging finance
A short-term bridge between selling one property and buying another, for 1 to 24 months.
Get your rate
Second mortgage rates, terms and LVR
Vivian Locke Capital second mortgages run from $100,000 to $10,000,000, from 1.75% per month, interest only, for 1 to 24 months.
| Loan amount | $100,000 to $10,000,000 |
|---|---|
| Rate | From 1.75% per month |
| Term | 1 to 24 months |
| LVR | Up to 75% of the property value on residential security, less what is owed on the first mortgage. Commercial and land are assessed case by case. |
| Repayments | Interest only, no principal repayments during the term |
| Security | Residential, commercial and land |
| Location | Australia-wide, with no postcode restrictions |
| Borrower | Australian Pty Ltd companies only, with Australian property as security |
| Valuation | On every loan, quoted before it's ordered |
The rate, fees and valuation cost are set out in your letter of offer before you commit to anything.
Can my company apply for a second mortgage?
Yes: Vivian Locke Capital's second mortgages are for Australian Pty Ltd companies with residential, commercial or land property as security, for commercial purposes only. Every loan is written on the same conditions:
- An Australian Pty Ltd company borrows, and a registered director signs as guarantor with ID for AML and KYC checks.
- The security is Australian residential, commercial or land property that already carries a first mortgage, or none.
- The funds have a clear commercial use. We don't offer personal or consumer loans.
- Your accountant or financial planner provides a serviceability letter.
- You state your exit strategy: a refinance, a sale or business cash flow.
- The property is valued before funds are released, and the valuation cost is quoted before it's ordered.
We assess the property value, the current debt against it and your exit strategy, supported by a serviceability letter from your accountant. That letter is the document to have ready before you start.
How much can my company raise?
A Vivian Locke Capital second mortgage reaches up to 75% of the property value on residential security, less what is owed on the first mortgage. Loans start at $100,000 and run to $10,000,000, and commercial and land security are assessed case by case.
| Residential property value | 75% of the value | Owed on the first mortgage | Indicative maximum second mortgage |
|---|---|---|---|
| $1,000,000 | $750,000 | $400,000 | $350,000 |
| $2,000,000 | $1,500,000 | $1,100,000 | $400,000 |
| $4,000,000 | $3,000,000 | $1,500,000 | $1,500,000 |
| $900,000 | $675,000 | $600,000 | $75,000, below the $100,000 minimum |
Illustrative arithmetic only, not deal examples. Every loan is valued at fair market value before an offer is final, and the rate, fees and valuation cost are set out in your letter of offer. Your first mortgage and its rate are untouched. We sit behind it.
Caveat loan or second mortgage: which fits your deal?
Vivian Locke Capital offers both: a caveat loan lodges a caveat on the title, while a second mortgage is registered behind your bank loan. Both start from 1.75% per month, interest only, and both are valued before funds are released.
| Caveat loan | Second mortgage | First mortgage | |
|---|---|---|---|
| How it's secured | A caveat lodged on the title of a property you own, recording our interest in it | A mortgage registered on the title behind your existing bank loan | A first-ranking mortgage registered on the title |
| Your existing loan | Stays as it is; the caveat sits behind it | Stays as it is; the second mortgage sits behind it | The property carries no other mortgage, or the existing loan is repaid at settlement |
| The step that releases funds | Once you accept and the valuation is complete, a caveat is lodged over the property and the funds are released | Once you accept and the valuation is complete, the second mortgage is registered behind your existing loan and the funds are released | Once you accept and the valuation is complete, the mortgage is registered on the title and the funds are released |
| Rate | From 1.75% per month, interest only | From 1.75% per month, interest only | From 8.65% p.a., interest only |
| Term | 1 to 24 months | 1 to 24 months | 1 to 24 months |
| Use it when | You want short-term funding secured by a caveat, with nothing registered or refinanced | You want the equity in a property that already has a mortgage, with your bank loan left as it is | The property carries no existing mortgage, or you're refinancing the existing loan |
Compare caveat loans in full, or see first mortgages. All three sit under our commercial property loans.
How it works
A letter of offer, which we aim to provide within 24 hours of your enquiry, then the valuation, then the funds.
1
Tell us what you need
Complete our short questionnaire with your loan amount, the property and its current mortgage, and how the funds will be used. It takes 2 minutes.
2
Get your letter of offer
We review your application and aim to provide a letter of offer within 24 hours of your enquiry, with the rate, fees and valuation cost set out before you commit.
3
Valuation, registration, funds
We quote the valuation cost before it's ordered. Once you accept and the valuation is complete, the second mortgage is registered behind your existing loan and the funds are released; most loans settle within 48 hours of acceptance, once the valuation is complete.
The loan documents go to your lawyer before settlement, so have their details ready when you accept.
What we need from you
To provide a letter of offer, we require the following information.
Loan details
1
Clear commercial use of the funds with the amount required
2
The term required (1 to 24 months) and your exit strategy after our term expires
3
Details of the borrowing Pty Ltd company with its ABN and the nature of the business
Security details
4
The full address of the proposed security and details of the security type (house, land, commercial premises, etc.)
5
Your estimated value of the proposed security and the current debt level on the property
6
Details of the guarantor(s) and their ID to comply with AML and KYC requirements
What a second mortgage costs, and how the valuation is quoted
A Vivian Locke Capital second mortgage costs from 1.75% per month, interest only, with the rate, fees and valuation cost set out in your letter of offer before you commit.
Every loan is secured against a valuation of your property, carried out at fair market value by our panel of professional valuers. There is no loan without one. We quote the valuation cost before it's ordered, and you proceed only if you're happy with the pricing.
The valuation feeds the assessment: the property value, the current debt against it and your exit strategy, supported by a serviceability letter from your accountant.
What happens if your exit moves?
If your exit moves, the property stays the security: a Vivian Locke Capital second mortgage remains on the title until it's repaid, on the terms in your loan documents, so read them with your lawyer before you sign.
Your exit strategy is how the loan is repaid at the end of its term, and it's assessed before any offer is made. There are 3 exits:
- A refinance, for example with a bank
- The sale of a property
- Business cash flow
The loan is secured against your property, so the property value, the debt against it and your exit are weighed together, supported by a serviceability letter from your accountant. If your exit timing changes during the term, tell us as early as you can.
A second mortgage isn't for personal or household spending: every loan is commercial in nature, to a Pty Ltd company.
Loans we've settled, from $125K to $882K
Each card is a settled deal as Vivian Locke Capital tells it: the place, the amount, what the funds were for and what happened next.
Deal example
Toorak, Melbourne, VIC
$320,000 for ATO debt removal and working capital
Our client needed to remove ATO debt, purchase stock and fund working capital while restructuring his wholesale furniture business. Being in debt to the ATO precluded him from major banks. Using a lowly leveraged investment property as collateral, we provided a second mortgage. The business is now trading strongly.
Deal example
Nashua, NSW
$882,000 second mortgage for a business
Our client, a Northern Rivers finance professional and real estate agent, needed a second mortgage for his business. We provided it against his rural luxury investment property with an accountant's letter and confirmation of income.
Deal example
Nashua, NSW
$500,000 for a film production project
Our client operates a film production company and urgently needed $500,000 for an upcoming project. He had large equity in a Byron Bay Shire home in Nashua and contacted us. We released funds within a week of the valuation.
Deal example
Bondi Beach, Sydney
$200,000 for renovation and stock for a fashion retail store
Our client required $200,000 for the renovation and stock of their fashion retail store in Bondi. We secured the funds as a second mortgage against their commercial asset at 65% LVR.
Deal example
Flinders View, QLD
$125,000 in working capital for a carpentry business
Our client required $125,000 for his carpentry business, for urgent working capital to cover expenses, invoices and subcontractors for upcoming projects. We released these funds as a quick second mortgage against his property.
Who you're dealing with
Vivian Locke Capital provides caveat loans, second mortgages and first mortgages to Pty Ltd companies with residential, commercial or land security, from $100,000 to $10,000,000.
Vivian Locke Capital loans are made through our lending entity, Vivian Locke & Partners Pty Ltd, ABN 89 639 401 648. We have a $30 million funding line set aside as a non-bank facility. Every loan is commercial in nature, made to an Australian Pty Ltd company, secured against Australian property and valued before funds are released. We don't offer personal or consumer loans. You speak directly with the decision maker.
Questions directors ask
Can my company get a second mortgage if the bank has said no?
A bank's no doesn't decide it: Vivian Locke Capital assesses a second mortgage on the property value, the current debt against it and your exit strategy. That assessment is supported by a serviceability letter from your accountant, and every property is valued before funds are released, so the offer still depends on the valuation and the documents listed above. In one deal example in Hunters Hill, Sydney, NSW, traditional finance wouldn't assist due to existing finance commitments, and a 5-month second mortgage against a residential property funded the trucks.
How do I check who I'm dealing with before I sign?
Start with the entity: Vivian Locke Capital loans are made through our lending entity, Vivian Locke & Partners Pty Ltd, ABN 89 639 401 648, which you can look up on the Australian Business Register. Then read the letter of offer, which sets out the rate, fees and valuation cost before you commit to anything. The loan documents go to your lawyer before settlement.
How is a second mortgage different from waiting for the bank?
A Vivian Locke Capital second mortgage runs on a stated timeline: a letter of offer, which we aim to provide within 24 hours of your enquiry, then settlement once you accept and the valuation is complete. Most loans settle within 48 hours of acceptance, once the valuation is complete. Your bank loan stays in place throughout, and because the term runs from 1 to 24 months, your exit can be a refinance with a bank later.
How much equity do I need for a second mortgage?
Enough that 75% of the residential property's value, less what is owed on the first mortgage, comes to at least $100,000, which is the smallest loan Vivian Locke Capital writes. The table above shows the arithmetic. Commercial and land security are assessed case by case, and every property is valued at fair market value before an offer is final.
Can a second mortgage be used for personal purposes?
No. Vivian Locke Capital's second mortgages are commercial loans to Australian Pty Ltd companies, and we don't offer personal or consumer loans. A registered director signs as guarantor with ID for AML and KYC checks.
Get your letter of offer
Tell us the amount, the property and what the funds are for. It takes 2 minutes, and we aim to have your letter of offer to you within 24 hours of your enquiry.
Important Information
- Please note that we do not offer personal or consumer loans. Loans are commercial only in nature.
- Please be advised that you must provide a suitable serviceability letter from your accountant or financial planner, and clearly state your exit strategy for the loan.
- Please ensure you provide all forms of ID to comply with AML and KYC requirements and be a registered director of an Australian company.
- Vivian Locke & Partners Pty Ltd, trading as Vivian Locke Capital, ABN 89 639 401 648.