2nd Mortgage
Put your equity to work.
Turn the equity in your property into funding for your next business move.
Where we can help
What is a Second Mortgage and How Does It Work?
A second mortgage lets you use available residential property equity for a business funding need. Kinox registers a mortgage behind your existing first mortgage, rather than replacing your bank loan.
Your solicitor checks the title, existing loan terms and the priority arrangement. The first lender normally has the earlier claim on sale proceeds; the amount secured ahead of Kinox matters. Consent or a priority agreement may be needed before settlement.
How much could you borrow?
Start with 85% of the property value, then subtract existing secured lending. Include the maximum limit of any revolving credit, even if you have not drawn it all.
| Property value | $900,000 |
|---|---|
| Existing secured lending, including revolving credit limits | $565,000 |
| Maximum combined lending at 85% LVR | $765,000 |
| Available second mortgage before fees and adjustments | $200,000 |
Higher amounts may be considered where equity is sufficient and the first mortgage is with a mainstream bank, subject to assessment.
A bank top-up or a separate lender?
Ask your bank whether an increase to your existing facility fits your needs. Kinox offers a separate, short-term business loan of up to $200,000 for up to 12 months. We review the property, funding purpose, supporting records and planned repayment. Your solicitor can compare the arrangements before you commit.
When a Second Mortgage Can Help
Bring us a specific business need and a realistic way to repay. Common requests include equipment purchases, working capital, investment-property improvements, business tax payments and settlement gaps on property trading projects.
Keeping your bank loan may be useful if you want funding for a short period. Compare the total cost of both loans and allow for delays to a sale or refinance. Kinox does not fund personal or household spending.
Second Mortgage vs Revolving Credit
Revolving credit allows you to borrow, repay and redraw within an agreed limit. It can suit repeated cash-flow needs. A Kinox second mortgage is a term loan with an agreed repayment date.
| Feature | Kinox 2nd Mortgage | Revolving Credit |
|---|---|---|
| Access to funds | Agreed loan advance | Draw and redraw within a limit |
| Term | Up to 12 months | As agreed with your bank |
| Repayments | Monthly interest; principal at the agreed end date | According to the facility terms |
| Interest basis | As set out in your offer | Typically on the drawn balance; fees may apply |
| Assessment and timing | Indicative approval targeted within 24 hours | Bank criteria and processing times apply |
Revolving credit terms vary by bank. For an example of how a New Zealand revolving facility operates, see ANZ Business Flexible Facility.
Second Mortgage Rates & Costs
Ask for a written breakdown of the full borrowing cost over your intended term. A low headline rate can still come with setup, legal or exit charges. Kinox confirms pricing in your individual offer.
- Interest: the rate, calculation method and payment dates.
- Setup: any establishment or brokerage fees.
- Legal work: both solicitors’ costs, title searches and registration.
- Repayment or changes: any discharge, extension, early-repayment or default charges.
Our in-house legal team coordinates with your solicitor to keep the process moving. Kinox does not normally require a formal valuation report; any extra requirement or cost is discussed before proceeding.
This external page compares market mortgage rates. It is not a Kinox rate card or a quote for a second mortgage.
Second Mortgages vs Caveat Loans on Cost
Compare the dollar cost for the amount and number of months you actually need. Kinox’s second mortgage limit is $200,000; its caveat loan limit is $100,000. Both products consider combined LVR up to 85%, so a higher LVR is not an automatic advantage of choosing a second mortgage.
A registered second mortgage may allow a more competitive rate, depending on the proposal. Include the legal and registration costs before deciding: the lowest interest rate does not always produce the lowest total cost for a very short loan.
A caveat protects an underlying interest in the title; it does not itself create a registered mortgage. Ask your solicitor to explain the security documents, priority and repayment obligations for the proposed structure.
Four Steps to Funding
Apply Online
Just enter your basic details, current lending, and your exit strategy.
Fast Review
We check your property title, LVR and exit plan, with a response targeted within 24 hours.
Review Offer
Consider the rate and fees, and discuss the offer with your solicitor.
Sign & Fund
Sign the loan documents. Once conditions are met, we register the second mortgage and release funds.