Quick answer
To raise business funds against property you can top up your existing loan with your current lender, refinance the whole loan to a new lender for a larger amount, or add a separate second mortgage or caveat loan behind the existing loan. Top-ups are simple if your lender agrees; refinances suit poor existing terms; a separate loan suits speed or keeping a good home loan untouched.
Key points
- Top-up: increase the existing loan with your current lender
- Refinance: replace the existing loan with a larger new one
- Separate second mortgage or caveat: leave the first loan alone
- Speed, cost and existing loan terms decide which fits
- Top-up
- Existing lender, increased loan
- Refinance
- New lender, larger first mortgage
- Second mortgage or caveat
- Separate loan behind the first
- Valuation
- Not needed for loans we arrange
If you own property with equity in it, there are three main ways to turn that equity into funds for the business. Each has different costs, timelines and effects on the loan you already have.
The three options
- Top-up: ask your existing lender to increase your current loan.
- Refinance: move the whole loan to a new lender and borrow more as part of the new loan.
- Separate loan behind the first: leave the existing loan as it is and add a second mortgage or caveat loan for the business amount.
Side by side
| Top-up | Refinance | Second mortgage or caveat | |
|---|---|---|---|
| Existing loan | Increased | Paid out and replaced | Untouched |
| Speed | Depends on your lender | Usually slowest | Usually quickest |
| Paperwork | Existing lender’s process | Full new application, discharge | Focused on the property and purpose |
| Business-purpose rules | Can be strict | Depends on new lender | Built for business purposes |
| Valuation | Often required by banks | Often required by banks | Not needed for loans we arrange |
Not sure this fits your business? That is exactly what the quick enquiry is for. One team reads it, no credit check runs, and nothing is sold on.
When a top-up fits
Your current lender is happy to lend for a business purpose, the amount is modest and you are not in a hurry. It keeps everything in one loan, which is tidy.
When a refinance fits
Your existing loan has poor terms, you want to consolidate several debts, or the amount needed is large enough that a single first mortgage makes sense. A first mortgage business loan can pay out the old loan and release the extra funds in one step.
When a separate loan fits
Your home loan has terms you want to keep, the business needs the funds quickly, or your bank is not keen on business-purpose lending. A second mortgage or caveat loan, from $20k to $5m with no valuation, adds the funding behind your existing loan. Interest can be paid up front or capitalised, so there may be no repayments during the term.
Doing both, in sequence
A common path is to use a caveat loan or second mortgage to solve the immediate need, then refinance everything into one longer-term loan once the business has stabilised or its financials are lodged. The property equity calculator helps you see how much room there is to work with.
Quick recap
- Top-up: increase the existing loan with your current lender
- Refinance: replace the existing loan with a larger new one
- Separate second mortgage or caveat: leave the first loan alone
- Speed, cost and existing loan terms decide which fits
How we work through it with you
One enquiry, one team, one clear answer. That is the whole approach. We read what you send, call you, ask for the documents that matter and lay out the options in plain English with the total cost attached. Your details are not shopped around, and your credit file is only checked if you choose to accept an offer. If the answer is no, you will hear it quickly and with a reason, so you can plan your next move.
Before you send the enquiry
A little preparation makes the first conversation far more useful, and it means the person who calls you can talk about options rather than chasing basic details:
- Your ABN and the legal name of the business.
- Online banking access, so recent statements can be shared through a secure read-only link.
- A rough figure for monthly turnover and the amount you need.
- A list of current loans and repayments, including any ATO payment plan.
- If property is involved, the address and roughly what is owed on it.
About the questions we ask
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.
Let’s see what fits
When you are ready, tell us what you need. Enquiring costs nothing and there is no credit check; a check only happens if you choose to go ahead with an offer. A real person reads every enquiry and calls you back, and we never auction your details to other lenders. One favour: fill in the form carefully. Honest figures for turnover, time trading and credit history let us match you properly the first time.
Frequently asked questions
Will my bank top up my home loan for a business purpose?
Some will, but many banks have stricter rules for business-purpose top-ups and may want business financials. It is worth asking, but be prepared for it to take time.
Is refinancing expensive?
It can involve discharge fees on the old loan, new establishment fees and legal costs. It makes most sense when the existing loan's terms are poor or the new loan clearly improves things.
Why use a second mortgage instead?
If your existing home loan has good terms, a separate second mortgage or caveat loan can raise business funds quickly without disturbing it.
Which is fastest?
A caveat loan is usually the fastest, followed by a second mortgage. Refinances are typically the slowest because the old loan must be discharged.
Can I refinance the second mortgage later?
Yes. Many owners use a second mortgage or caveat to move quickly, then refinance everything into one loan later.
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.