Quick answer
A property-secured business loan uses residential or commercial property as security for business funding. Because the property carries much of the risk, these loans can be larger, from $20k to $5m, and less dependent on credit history or financial statements. They can be first mortgages, second mortgages or caveat loans, need no valuation, and interest can be paid up front or capitalised into the balance.
Key points
- $20k to $5m against residential or commercial property
- First mortgage, second mortgage or caveat
- No valuation needed
- Interest can be paid up front or capitalised, terms are flexible
- Amount
- $20k to $5m
- Security
- Residential or commercial property
- Valuation
- Not needed
- Repayments
- Regular, or none if interest is prepaid or added
For many Australian business owners, the biggest asset they have is property: the family home, an investment unit, the factory the business runs from. A property-secured business loan puts that equity to work for the business, unlocking more money on more flexible terms than an unsecured loan can usually offer.
How does a property-secured business loan work?
The loan is made to the business (or its owners for a business purpose) and secured over property. The security is registered on the title as a mortgage or protected by a caveat. If the loan is repaid as agreed, the security is simply removed at the end. Because the lender can rely on the property, it leans less on years of financial statements or a perfect credit file.
Property-secured business loans run from $20k to $5m, over residential or commercial property, and need no valuation.
Which structure fits?
| Structure | When it fits |
|---|---|
| First mortgage | The property has no existing loan, or you are refinancing the existing one |
| Second mortgage | You want to keep your current home loan and borrow behind it |
| Caveat loan | Speed matters most and the need is short term; it can later convert to a registered second mortgage |
What can the money be used for?
Any genuine business purpose. Common ones include clearing an ATO debt, buying stock or equipment, funding a fit-out, buying a business or a partner’s share, refinancing expensive short-term debt, and covering a gap until a sale or refinance completes.
Numbers in front of you? Put them in the enquiry and we will tell you plainly what looks realistic. Enquiring does not touch your credit file.
Repayments that suit the situation
This is where property-secured loans really differ. Interest can be prepaid for the term or added to the loan balance, so there may be no repayments at all until the loan is cleared. That suits a business recovering from a tough patch, waiting on a large receivable or bridging to a property sale. Regular repayments are also available if you prefer to reduce the balance as you go.
How much equity do you need?
Lenders cap the total of all loans on a property at a percentage of its worth. Your usable equity is the gap between that cap and what is already owed. The property equity calculator gives you a quick estimate using your own figures.
An illustrative example
A Brisbane-based transport company needs $350,000 to clear a tax debt and replace two trucks’ worth of tyres and servicing. Its statements are recovering but not yet strong. The director owns a home worth around $1.2m with $480,000 owed. A second mortgage behind the existing home loan, with interest added to the loan for twelve months, clears the debt without touching weekly cash flow. The exit plan is a refinance once two strong years of financials are lodged.
Things to think through first
- Everyone on the title will need to agree and sign, and some may need independent advice.
- Have a realistic exit: a sale, a refinance, a big receivable or trading cash.
- Understand that the property is at risk if the loan is not repaid.
Our guide to no-valuation property loans covers how the property is assessed.
Key takeaways
- $20k to $5m against residential or commercial property
- First mortgage, second mortgage or caveat
- No valuation needed
- Interest can be paid up front or capitalised, terms are flexible
How the process runs
We keep it simple. Your enquiry goes to one team. That team calls you, confirms the details, asks for bank statements or property details and tells you honestly what looks achievable. If the right answer is a payment plan, a conversation with a supplier or waiting a quarter, we will say so. If funding fits, you get the amount, term, repayments and total cost spelled out before you sign anything. You will always know who is handling your file and how to reach them.
Getting your details together
You do not need a folder of financial statements to start an enquiry. For most unsecured and property-secured funding, these few items cover the essentials:
- Photo ID for each director or owner.
- Access to your business bank account for a secure statement link.
- Your latest BAS, if it is handy.
- Details of existing finance, including any daily or weekly repayments.
- For property-secured funding, the property address and current loan balance.
Getting the enquiry right
The enquiry asks for the amount, the purpose, how long you have traded, your monthly revenue, your credit history, your state and whether you own real estate. Each answer steers your enquiry towards the right option. Accurate answers let the first call move straight to solutions. Rounded-up turnover or a credit history that turns out to be different from the form means starting again, which costs everyone time.
Get a straight answer
To see what is available for your business, complete the 60-second enquiry. It is free, there is no credit check and it goes to one team, not a lead marketplace. Please be precise with the amount, turnover and credit history. Those answers shape everything that follows, and getting them right is the single best way to get a fast, useful answer.
Frequently asked questions
What kinds of property can secure a business loan?
Residential homes, investment properties, units, commercial premises and some industrial and rural property. The property can be owned by the business, its directors or a related entity, as long as everyone on the title agrees.
Why is no valuation needed?
The lender assesses the property from its details and recent sales information rather than ordering a formal valuation report. That removes a step that can otherwise take days and cost money.
Do I have to make monthly repayments?
Not necessarily. Interest can be prepaid for the term or added to the loan, so there may be nothing to pay until the loan is repaid. Regular repayments are also an option.
How long can I keep a property-secured business loan?
There is room in the term if things run late, and the loan can stay in place as long as you need, which helps if a sale or refinance takes longer than expected. Go in with a clear plan for how it will be repaid.
Can I use my home to secure a business loan?
Yes, many owners do. It is a serious decision, because the home is at risk if the loan is not repaid. Make sure the purpose and the exit are solid, and that everyone on the title understands what they are signing.
Ask right here, it takes a minute
The same 60-second enquiry, on this page. No credit check to enquire, and the person who reads it is the person who calls you.