Secured lending calculators
Second mortgage headroom calculator
Keep your first mortgage exactly where it is. See how much room is left behind it for a short-term business loan.
Room behind your bank
Estimated second mortgage headroom
$0
- Lendable value at the combined cap$0
- First mortgage counted$0
- Combined LVR with your request0%
- Your request fits?n/a
Numbers look workable? Get them checked by a specialist
A calculator gives you a starting point. A 60-second enquiry gets a real person to test it against the property, the purpose and the exit. No credit check when you first enquire.
Why borrow behind the bank instead of refinancing
Many business owners have a home or investment loan they are happy with: good pricing, a long term and a lender they know. Refinancing that loan to release equity for a short-term business need can mean break costs, new paperwork for the whole debt and a slower process. A second mortgage leaves the first loan untouched and registers a new, smaller loan behind it. When the business need is over, the second mortgage is repaid and discharged, and the first mortgage carries on as before.
How headroom is worked out
- Apply a combined cap to the property value. This is the most both loans together can reach.
- Subtract the first mortgage. Use the limit rather than the balance where the loan can be redrawn, because that money could be drawn ahead of the second lender.
- Subtract any interest and fees that will be added to the second loan.
What is left is the headroom: the most a second mortgage could reasonably be. If your request fits comfortably, the next questions are the purpose and the exit. If it does not, a caveat structure, an extra property or prepaying interest instead of capitalising it may close the gap. The LVR calculator lets you add a second property.
Consent, caveats and conversion
Some first mortgage contracts need the bank's consent before a second mortgage can be registered. Where that would slow a time-critical deal, a caveat loan can protect the lender's interest quickly, and a caveat can later be converted to a registered second mortgage. Your specialist will work out which route fits.
Check your real headroom
No valuation is needed before approval, so you can find out quickly where you stand. Start a 60-second enquiry with the property value, your current mortgage balance and the exit you have in mind. There is no credit check when you first enquire, your enquiry is not passed around, and accurate figures make the first conversation count.
Questions about this tool
What is second mortgage headroom?
It is the maximum a second mortgage could be once the first mortgage and any capitalised costs are taken off the property's lendable value. It answers the question: how much can I borrow without touching my existing bank loan?
Should I use the first mortgage balance or limit?
Use the limit if the loan has a redraw or line-of-credit feature, because the first mortgagee could lend up to that limit ahead of the second mortgage. Otherwise use the current balance.
Does my bank have to agree to a second mortgage?
Some first mortgage contracts require the bank's consent before another mortgage is registered; others only require notice. A caveat loan can sometimes be used where consent is slow. A specialist will check your situation.
Why do capitalised costs reduce headroom?
Interest and fees added to the loan increase the amount secured on the title. They have to fit under the same cap as the advance, so they are taken off the headroom.
Is a second mortgage cheaper than refinancing the first?
Often it is the simpler option for a short-term need, because your existing loan, its pricing and its term stay untouched. Refinancing makes more sense when you need a larger amount for longer.
Our promises
No credit check to enquire
Find out where you stand before anything touches your credit file. A check only happens once you choose to proceed.
Not shopped around
Your enquiry is not sprayed across a list of lenders. It stays with one team that works the deal properly.
A real person on your file
A secured lending specialist reads your details and calls you. Accurate answers on the form mean the right structure first time.
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Open the calculator →Settlement Checklist
Tick off the documents and steps that get a secured loan from approval to funds.
Open the calculator →Done the sums? Let's test them against a real deal.
One short enquiry. No credit check when you first enquire, a specialist reading it, and your details kept with one team rather than shopped around.
No credit check to enquire
Not shopped around
A real person on your file