Fast first mortgage business loans

A first mortgage business loan uses property as the main security, with the lender’s mortgage ranking ahead of anyone else’s on the title. Because that’s the strongest position a lender can have, first mortgages support the largest amounts and often the most flexible terms. And with a clean title and a quick valuation, they can also be among the fastest.

Owners use them when there’s significant equity in a property that’s either unencumbered or carries a loan they’re happy to refinance: a paid-off home, a commercial building, a warehouse or a block of land with a clear path to value.

How a first mortgage business loan works

1. You tell us the amount, the purpose, the deadline and the property.
2. The lender orders a valuation and title search.
3. If there’s an existing loan, a payout figure is requested from that lender.
4. Loan documents are issued and signed by every owner and director.
5. At settlement, any existing loan is paid out, the new mortgage is registered and the balance goes to you or straight to the purpose.

The steps don’t change between a $50,000 loan and a $5,000,000 one. What changes is how many properties, people and documents are involved.

First mortgage, second mortgage or caveat?

	First mortgage	Second mortgage	Caveat loan
Position	First on title	Behind an existing mortgage	Caveat lodged on title
Existing loan	Repaid	Stays in place	Stays in place
Typical amount	Up to $5m	Smaller, limited by remaining equity	Usually smaller, short-term
Speed	Up to $5m possible within 24–48 hours	$20k to $250k possible same day (property-secured)	Often the fastest
Suits	Largest amounts, longer terms	Keeping a good existing loan	Urgent, short needs with a firm exit

If your current home loan has a good rate and you don’t want to disturb it, a second mortgage is usually the better fit. If the need is very short and urgent, look at caveat loans.

Short-term private or longer-term?

Short-term private first mortgages usually run from a few months up to a year or two. They’re assessed mainly on the property and the exit, so they suit businesses whose books are behind, owners with past credit issues, or needs where speed matters most. Interest is often prepaid or capitalised, so the business isn’t stretched by monthly repayments during the term.

Longer-term first mortgages look more like a traditional commercial loan, with regular repayments over many years. They need a fuller look at the business’s income but cost less over time. Many owners start with a short-term loan to meet a deadline, then refinance to a longer-term loan once things settle.

What lenders need

• Property address, type, estimated value and current loan balance.
• Names of all owners on the title, and their identification.
• Recent business bank statements.
• The purpose, with quotes, contracts or statements.
• For short-term loans, a clear exit: refinance, sale or a specific payment.

An illustrative example

A Hobart joinery business owns its workshop outright. A large commercial fit-out contract needs new CNC equipment and three months of wages before the first progress payment. The owners need $650,000 within the week. A short-term first mortgage over the workshop is arranged with interest capitalised, so there are no repayments while the contract ramps up. The exit is a refinance to a longer-term commercial loan once the contract income shows in the books, and the lender agrees the timetable at the start.

What to watch for

• Total cost in dollars, including valuation, legal, establishment and discharge fees.
• How interest is charged, whether monthly, prepaid or capitalised, and what happens if you repay early.
• Default terms, including any higher default rate and what triggers it.
• The exit date, and what happens if the refinance or sale takes longer.

Small business contracts are covered by unfair contract term protections, but it’s still worth having your solicitor read the documents before you sign.

Speeding up the payout figure

If your property already has a loan, ask your current lender for a payout figure on the day you enquire. It’s often the slowest step, and requesting it early can save several days.

Need a first mortgage business loan fast?

Tell us the amount, the deadline and the property. There’s no credit check to make an enquiry, we don’t hand your details to a pile of lenders, and a real person reads it and calls you to set the steps in motion the same day.

Please be accurate on the form about the property, any existing loan and your exit plan, because those three things decide how fast it can settle. Start your enquiry.