Second mortgage borrowing capacity
How much second mortgage capacity sits inside a target combined-LVR cap, given property value and existing first mortgage balance. Educational only.
How private credit sizes a second mortgage
The combined position is what matters. Lender adds the existing first balance and the proposed second, divides by the property value, and tests it against the policy cap for the security type. Standard prime residential maxes out at 80% combined; apartments and commercial sit lower. Above-envelope files go to committee with structuring.
Why borrowers use a second instead of refinancing
Two patterns. The existing first carries terms worth keeping, a fixed rate locked below variable, an offset facility with a material balance, a long-dated commercial facility on terms the borrower would not get today. Or full refinance would fail current bank serviceability rules even though the equity position is strong. Both point to a second mortgage behind the first. Detail on second mortgage loans.