Belinda White
2 years ago on Google
Sumit is an outstanding mortgage broker. He patiently worked through our application and got us an awesome result when many other brokers wouldn't assist as we are small business owners. Thank you!
Private lending broker, Sydney
Second Mortgages and Private Lending, With a Clear Way Out
Short-term private and second mortgage finance for business owners and investors who need to move faster than a bank. We explain the costs and test your exit plan before you sign anything.
- Mainstream lenders checked first
- Every cost set out in writing before you commit
- Based in Norwest, Sydney, with Sumit on your file
- 5.0 from 360+ Google reviews
- 2,500+ clients helped
- Credit Rep 446824
Updated November 2026
5.0From 360+ Google reviews Read them- Clients helped
- 2,500+
- Broker fees on home loans
- $0
- Loan review, no credit check
- Free
Some of the banks and lenders we compare for you
Second mortgages explained, updated November 2026
What is a second mortgage?
Quick answer
Second mortgage, in one paragraph
A second mortgage is a loan secured against a property that already has a first mortgage. The first lender keeps first claim on the property and the second lender sits behind it. Because the second lender carries more risk, a second mortgage usually costs more than a standard loan, runs for a short term and needs a clear plan to repay it.
Second mortgages are one kind of private lending. Others include short-term first mortgages from private lenders and caveat loans. All of them are tools for a specific job, such as funds for a business before a sale settles, not a replacement for a refinance with a mainstream lender.
How a second mortgage works
Your first loan stays in place
You keep your current home loan, its rate and its repayments. Nothing about it changes.The second lender lends against your equity
It values the property, works out the equity left after your first loan and lends against part of it.Your first lender may need to consent
Many first mortgages need the first lender to agree before a second mortgage is registered. Some first lenders say no, so we check early.It is repaid from your exit
Most second mortgages are repaid in one amount at the end of a short term, from a sale, a refinance or a business event.
Every situation is different.
Talk to a broker about yoursSumit · 0:52
Who it is for
Who private lending and second mortgages are for
Most private loans we arrange are for business or investment purposes. They work best when time is short and the way to repay is clear.
Business owners who need funds fast
Working capital, stock or an opportunity that will not wait for a bank to finish its assessment.
How we handle it
A private lender can secure a business-purpose loan against property and make the decision in-house. It suits a short gap with a known end, such as a contract payment or a sale. For longer needs, see business loans from mainstream lenders.
A property purchase with a short window
A short settlement, an auction or a deal where the bank timeline does not fit the contract.
How we handle it
A private loan can cover the purchase while a standard loan is arranged, so long as the refinance to a mainstream lender is realistic. We check that before anything is signed.
Bridging a gap between buying and selling
You have bought before your current property sells and need funds in the meantime.
How we handle it
Many mainstream lenders offer bridging loans, which usually cost less than private finance. We look at those first. See bridging loans.
Investment and business purposes
Settling an investment property, funding a development stage or buying business premises.
How we handle it
Short-term private finance can carry a project to the point where a commercial lender or bank will take it on. The exit is agreed up front.
Every situation is different.
Talk to a broker about yoursHonest advice
When a private loan is not the right answer
- Paying bills, rent or groceriesDay-to-day costs need a budget plan or hardship help, not a short-term loan.
- Catching up on other debtsAsk your lenders about hardship arrangements first. A financial counsellor can help.
- No date or event to repay itWithout a sale, refinance or business event in sight, costs can build fast.
- A bank could do it in timeIf a mainstream lender can settle when you need, that is usually cheaper.
Costs
What private and second mortgage loans cost
Private and second mortgage loans cost more than a bank loan. How much depends on the lender, the property, the purpose and the term.
We do not quote rates or fees on this page because they change from deal to deal. What we do is set out every cost in writing, including any fee of ours, before you commit. These are the items to ask about:
- Interest rateHigher than a standard home loan. Some loans capitalise interest or ask for it up front.
- Establishment feeCharged by the lender when the loan is set up.
- Valuation and legal costsOften both the lender's legal costs and your own.
- Early or late repayment termsSome loans charge a fee if you repay early, and default costs if you repay late.
Every situation is different.
Get the full cost for your deal
Exit strategy
Your exit strategy comes first
A private loan is only as good as the plan to repay it. Before we approach any lender, we test your exit with you: is it realistic, what is the timing and what happens if it runs late?
Selling a property
The sale proceeds repay the loan. We check the likely price, the selling costs and the timing. Estimate them with the property selling costs calculator.Refinancing to a mainstream lender
Once the deal settles or your situation changes, a standard lender takes over the debt. We check you are likely to qualify before you rely on it.A business event
A contract payment, a business sale or another settlement repays the loan. We look at how certain it is and when it lands.
Every situation is different.
Test your exit plan with a brokerSumit · 1:14
Compare your options
Second mortgage vs refinance vs equity release
If you own property, there is usually more than one way to raise funds. A second mortgage is rarely the cheapest, so we compare it with the others first.
| What changes | Second mortgage | Refinance | Equity release |
|---|---|---|---|
| Your current loan | Stays in place | Replaced by a new loan | Topped up or split |
| Typical cost | Highest | Usually lowest | Usually low |
| Typical term | Short | Long | Long |
| Speed | Often quicker | Bank timeline | Bank timeline |
| Needs first lender | Often its consent | No | Yes, it lends |
General comparison only. Each lender sets its own policy, pricing and timing.
Every situation is different.
Compare your options with a brokerSumit · 1:18
Free private lending review
Tell us the deal and the deadline
What the funds are for, the property, your current loan and how you plan to repay. We will tell you whether a bank, a non-bank or a private lender fits, and what each would cost.
- 5.0 from 360+ Google reviews
- 2,500+ clients helped
- Credit Rep 446824
Business and investment purposes
Private loans for business owners and investors
This is where most of our private lending sits. A business-purpose loan secured against property is assessed on the security, the purpose and the exit, so the questions a lender asks differ from a home loan.
For business-purpose loans, past credit issues are not always the deciding factor with some private lenders. They still matter, no lender approves every deal, and we tell you honestly where you stand before anything is lodged.
Working capital and stock
Short-term funds for a business while a contract, sale or bank facility comes through.
Business premises
Settle on premises quickly, then move to a commercial property loan once the bank is ready.
Investment settlements
Cover a short settlement on an investment purchase, with a refinance planned from day one.
Tax and supplier deadlines
A known bill with a known repayment source, where a short loan costs less than the delay.
Longer-term needs belong with mainstream lenders. See business loans, commercial property loans and commercial lending.
Personal and commercial loans, on Google
Info Nue Design Homes
a year ago on Google
Our experience with Sumit and his team was wonderful. They guided us from start to finish in a professional and unbiased manner. They are a team of highly qualified well experienced professionals who can be relied upon for your personal and commercial loan needs. We strongly recommend them for your financial requirements and wish them all the very best.
Every situation is different.
Talk to a broker about yoursHow it works
How we compare second mortgage lenders
Second mortgage lenders and private lenders each have their own rules on property types, how much of your equity they lend against, terms and fees. As your private lending broker, we do the comparing.
Step 1
Tell us the purpose and the deadline
A free call about what the funds are for, the property, your current loan and your timeline. Nothing is lodged anywhere.
Step 2
We check mainstream options first
We look across 50+ lenders for a bank or non-bank loan that can do the job in time, because that is usually cheaper.
Step 3
We test your exit
Sale, refinance or business event: we check it is realistic and what happens if it runs late.
Step 4
We compare private and second mortgage lenders
Rate, fees, term, early and late repayment terms and whether your first lender must consent.
Step 5
Every cost in writing
You see the full cost before you commit, and get independent legal advice on the loan documents.
Step 6
Settlement and the way out
Kathryn tracks the paperwork to settlement. We stay with you to the exit, including the refinance if that is the plan.
Every situation is different.
Talk to a broker about yoursStart with a free call
Contact our Norwest officeFree, no obligation.
Sumit · 0:54
Google reviews
What our clients say
Rated 5.0 out of 5 from 360+ Google reviews. Business owners and clients with complex files and tight timelines, quoted word for word. Read all 360+ Google reviews.
5.0
From 360+ Google reviews
Sumit · 2:59
Raj Parasher
3 years ago on Google
We had a wonderful experience with Ryro Loan Centre, Sumit is very professional, knowledgable and resourceful. The whole process was very smooth, we highly recommend using Sumit for your home or business loan requirements. All the best!
Cherrie Sandford
5 years ago on Google
Sumit is extremely professional, supportive and respectful in his business dealings. He went to great lengths to get several simultananeous home loans for me that were extremely complex in nature. He always returned my calls and emails in an efficient timely manner even though contacting me and my husband who works regionally was so difficult. As a woman doing business, he treated me so kindly and I never felt I asked him a silly question, though I'm sure I did. I always felt he would never ever let me down. I HIGHLY recommend Ry Ro loan centre and I would never do business elsewhere now that I've experienced his business services.
Karanpreet Singh
3 years ago on Google
It was such a great experience while working with Sumit. When I contacted Sumit I was very short on time as few other brokers had wasted my time but Sumit assured me that he will get me the approval and he did get me one within the time frame. He is very straight forward and had all the answers for my question whenever I needed. I will definitely work with Sumit in future and will highly recommend Sumit. Thank you Sumit and Team.
Taina Gouvea
7 months ago on Google
Highly recommend Sumit and Dean from RYRO Loan Centre! We had a major issue with our chosen bank, and they went above and beyond to secure a new approval just in time. They are true professionals who genuinely care about their clients, always keeping us updated and responding quickly to all messages. They raced against the clock and made it happen. We couldn't be happier with their service!
Kesan Ramamoorthy
4 years ago on Google
Simply Awesome! RyRo made my home loan refinance look very easy but I know having a complex loan structure, it's a very difficult job to do. So thank you Sumit for all your help and constant updates throughout the loan process.
Miki Echavez
5 years ago on Google
Sumit Joshi handled my home loan application with professionalism and care. Even on very short notice, he was able to secure a better deal for me compared to the other loans I was offered at the time. He responds to my enquiries promptly and is always at the ready to address my concerns. I highly recommend his service!
From the blog
Guides before you borrow short term
The cheaper alternatives to a private loan, explained: bridging between two homes, using your equity and what refinancing really costs.
FROM THE RYRO BLOG
Bridging Loans Sydney 2026: How Hills District Upgraders Can Buy Before They Sell
Home Loans · 23 min read
A bridging loan lets you buy your next home before your current one sells. For Hills District upgraders trading up to Kellyville, Bella Vista or Cherrybrook, it can be the difference between landing the right home or losing it. Here is exactly how bridging finance works in 2026.
Read the guide
FROM THE RYRO BLOG
How Equity Works When Buying Your Next Home (2026 Sydney Upsizer's Guide)
Home Loans · 13 min read
When you buy a second home with equity, the lender is not giving you the value of your house. It is lending against 80 percent of it, minus what you still owe. This guide shows the usable equity calculation step by step, what the next purchase actually costs at 2026/27 NSW duty rates, and whether you are better off keeping the first home or selling it.
Read the guide
FROM THE RYRO BLOG
What It Really Costs to Refinance a Home Loan in Australia (2026 Breakdown)
Refinancing · 11 min read
Refinancing in Australia usually costs $500 to $2,000 in switching fees, and most of that is government charges plus a discharge fee. Here is every line item for 2026, with the break-even maths worked through on a $750,000 Sydney loan.
Read the guideBuying before you sell? Start with the bridging loans guide for Sydney upgraders. Weighing a refinance? Read the cost of refinancing in 2026.
Free tools
Calculators to check your numbers and your exit
Run these before you commit to any short-term loan. None asks for your details to show a result.
- Loan repayment calculatorSee the repayment on a loan amount, rate and term, and how a higher rate changes it.
- Property selling costs calculatorIf a sale is your exit, estimate what you keep after agent fees and other costs.
- Borrowing power calculatorIf a refinance is your exit, get an indicative figure for what a standard lender may lend.
FAQs
Second mortgage and private lending FAQs
Have a question not covered here? View all FAQs or ask Sumit directly.
The basics
What is a second mortgage?
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A second mortgage is a loan secured against a property that already has a first mortgage on it. The first lender keeps first claim on the property. The second lender sits behind it, so if the property is sold, the first loan is repaid before the second. Because the second lender carries more risk, second mortgages usually cost more than a standard home loan and run for a shorter term.
How does a second mortgage work in Australia?
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The second lender values the property, works out the equity left after your first loan and lends against part of that equity. You then have two loans and two sets of repayments or interest. Most second mortgages are short term and are repaid in one amount from a sale, a refinance or a business event. Before any lender says yes, it will want to see how you plan to repay it.
Do I need my first lender's permission for a second mortgage?
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Often, yes. Many first mortgages need the first lender's consent before another lender can register a second mortgage, and some first lenders will not give it. The second lender may also ask for a deed that sets out the order of repayment. We check your current loan terms early, because a refused consent can change the whole plan.
What is private lending?
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Private lending is finance from a lender outside the banks, usually a private credit fund or a group of investors that lends against property. Private lenders make decisions in-house and assess the security and the exit closely. That can suit a short, time-critical deal that a bank cannot fit. Costs are higher and terms are shorter, so private loans are a tool for a specific job, not a long-term home loan.
Who are second mortgage lenders?
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Second mortgage lenders are mostly private lenders, private credit funds and some non-bank lenders. The big banks rarely lend in second position. Each lender has its own rules on the property types it accepts, how much of the equity it will lend against, the loan terms and the fees. As a private lending broker, we compare the options for your deal and explain the trade-offs before you choose.
What is a caveat loan?
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A caveat loan is a short-term private loan where the lender lodges a caveat on the property title instead of registering a mortgage. A caveat warns anyone dealing with the property that the lender has an interest in it. Caveat loans are usually used for business purposes and very short terms. They carry high costs and real risk, so we only consider one when there is a clear, near-term way to repay it.
Costs, risks and when to say no
What does a private loan or second mortgage cost?
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More than a bank loan. Expect a higher interest rate plus fees that can include an establishment fee, valuation, the lender's legal costs and your own, and in some cases a fee if you repay early or late. Every lender prices differently and pricing depends on the deal, so we do not quote figures here. We set out every cost in writing, including any fee of ours, before you commit.
What is an exit strategy and why does it matter?
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An exit strategy is how you will repay the loan when it ends: selling a property, refinancing to a standard lender, or a business event such as a contract payment or a sale settling. Private and second mortgage loans are short term, so the exit matters as much as getting the loan. If the exit falls through, costs can climb quickly. We test your exit with you before we approach any lender.
When is a private loan not a good idea?
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When the money is to cover day-to-day living costs or other debts you are struggling to pay, or when there is no clear way to repay it at the end of the term. In those cases a short, expensive loan can make things worse. Talk to us about other options, and if you are in financial difficulty, the National Debt Helpline (1800 007 007, ndh.org.au) offers free, confidential financial counselling.
Is a second mortgage better than refinancing?
+
Usually not, if refinancing is possible. Refinancing your whole loan with a mainstream lender, or releasing equity with your current lender, is normally cheaper than a second mortgage. A second mortgage tends to make sense when time is short, when your current loan has a fixed rate break cost or other reason not to touch it, or when the purpose does not suit a bank. We compare all three for you.
Working with RyRo
What do you use private lending for at RyRo?
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Most private loans we arrange are for business or investment purposes: a business owner who needs funds before a bank can settle, an investor with a short settlement window, or a buyer bridging the gap between buying and selling. We look at mainstream options first. If a bank or non-bank lender can do the deal in time, that is usually the cheaper answer.
Can I get a private business loan with past credit issues?
+
For business-purpose loans, some private lenders focus on the property security and the exit more than on the credit file, so past credit issues are not always the deciding factor. They still matter, and no lender approves every application. We read your situation honestly first and tell you whether a private loan is sensible, or whether another route would serve you better.
How quickly can a private loan settle?
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Private lenders make decisions in-house, so they can often move faster than a bank. Timing still depends on the valuation, the legal documents, any consent from your first lender and how quickly you can supply information. We never promise a settlement date. We tell you what a realistic timeline looks like once a lender has reviewed the deal.
What happens after I contact you?
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Sumit reads your details and calls you back. He asks what the funds are for, the property and its current loan, your timeline and how you plan to repay. If a private loan is not the right fit, he says so and suggests what is. If it is, we compare suitable lenders, explain every cost in writing and stay with you through to settlement and the exit.
Free private lending review
Need funds before a bank can move? Let's check your options.
Join 2,500+ Australians who've trusted RyRo Loan Centre. We look at mainstream lenders first, then private and second mortgage lenders, and we test your exit before any application.
We generally respond within an hour. Prefer to pick a time? Book your strategy call online or contact us.
Sumit Joshi JP
Principal broker, Credit Rep 446824
- Sumit reads your details and calls you back
- Every cost set out in writing before you commit
- Honest advice, including when a private loan is not the answer
Sumit · 0:49
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- From 360+ Google reviews
- 5.0
- Clients helped
- 2,500+
- Broker fees on home loans
- $0
- Lenders compared before we look at private options
- 50+
“Great service and can make difficult tasks easy. Highly recommended.”
Sumit Joshi JP, Credit Rep 446824. AFG Award Winner 2013 to 2019 and AFG Excellence Awards finalist 2022 to 2026. General information only, not a credit offer. Private and second mortgage loans cost more than standard loans and depend on the lender, the property, the purpose and your exit. Every loan is subject to the lender's assessment.