Compare private lenders for a second mortgage

What a second mortgage lender looks at

A second mortgage is a loan behind a senior lender on the same property. Three figures describe it: the new loan, what the property is worth and what the senior lender is owed. The quote asks for all three, and shows the combined position, what the senior lender is owed plus the new loan, against the value as you type.

On Panel compares private and non-bank lenders for business-purpose loans secured by Australian property. That is the scope of every comparison on this page.

Each lender on the panel has its own policy, so the same second mortgage fits some lenders and sits outside others. That is the reason to compare across the panel instead of asking one lender at a time.

What you enter in the quote

Paste a few lines of the scenario, or a client’s email, into the first box and the quote reads what it can from it. Check each figure, change what is wrong and carry on. You can compare the lenders on the panel without signing in.

• The property. Start with an address, or choose No address yet and enter the details yourself.
• The loan you are placing.
• What the property is worth.
• What the senior lender is owed, in a box of its own.
• The term, and how the loan gets repaid: a sale, a refinance to a bank, the sale of another asset, a completion and sale, or your own words.

Who the senior lender is

When the quote asks what kind of loan this is, choose the card that reads Top-up behind an existing senior lender. It is the second mortgage card.

The amount owing to the senior lender goes in once. The lenders on the panel are then compared on the position behind it, on the same scenario and in the same result.

Brokers placing a top-up for a client with a senior lender already in place enter the figures once. Change one and the result moves with it, so a different loan amount or property value is a quick check rather than a new submission.

How the lenders are compared

The result shortlists up to three lenders, fits first, with rate, amount, term and cost side by side. A lender that needs more detail before it can answer is marked as such.

Every rate carries its policy condition and the policy version it came from. Cost is worked out from the policy rate, interest only, at the term you selected, and the result says so.

The condition beside a rate names the location, and the loan-to-value limit where the lender’s policy states one. Read the condition before the number, because a rate quoted without it says little about your scenario.

What it costs a broker

Brokers pay $0 in On Panel fees. You keep 100% of your brokerage and your client relationship. The lender pays On Panel on settlement.

The cost in the result is interest over the term plus the lender’s establishment and line fees. Valuation, legal and other third-party costs sit outside it and still apply to your client.

The comparison depends on the scenario you enter, and you can enter a different one as often as you like.

From comparison to settlement

If a lender on the panel fits, the work does not stop at the comparison. On Panel’s credit and sales support runs through settlement: structuring the loan, packaging the file, submitting it and following up with the lender.

The lender sets the terms and makes the credit decision. Results are indicative until it has done so.

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