Second mortgage
Second mortgage for an ATO debt, behind a fixed first
$650k, 78% combined LVR · Melbourne, VIC
Hypothetical example for explanation only. This is not a completed Archer Wealth transaction, a credit approval or a promise of an outcome.
The situation
Self-employed borrower with strong equity in a Toorak family home, an existing first mortgage fixed at a rate well below current variable, and a six-figure ATO debt the bank would not refinance into a top-up. Full refinance would have meant losing the fixed first.
Structure
- Registered second mortgage behind the existing first
- First-mortgage-holder consent as part of the standard process
- Combined LVR of 78%
- ATO debt to be cleared at settlement; remainder for short-dated working capital
What a lender would look at
A lender would look at whether the exit is documented and whether the security supports the position. Settlement timing depends on the application, valuation, due diligence, funding availability and completion of documentation. Tell us about any contractual deadline when you submit your enquiry.
Key risks
Finance is subject to assessment and approval. Interest, fees and other costs apply. Failure to meet your obligations may result in enforcement against the security and action against any guarantor.
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