First mortgage business loans: the biggest amounts, still moving quickly

When the amount is large — a few hundred thousand, a million, more — a first mortgage is usually where the conversation goes. Being first in line on the title gives a lender the most comfort, which is what allows bigger amounts and longer terms. It also involves a little more work than a second mortgage or caveat, so knowing where the time goes is the key to keeping it fast.

What makes a mortgage “first”?

Mortgages over a property rank in order. The first mortgagee gets paid first from any sale; a second mortgagee gets what’s left after that. A first mortgage business loan means the new lender takes that top spot.

There are two common ways to get there:

• Unencumbered property — the property has no loan on it, so the new lender simply registers a first mortgage.
• Refinance — the new lender pays out your existing lender and takes over first position, usually lending extra on top for the business.

How much can a first mortgage business loan provide?

Property-secured business loans range from $20,000 to $5,000,000. The amount for your deal depends on:

Factor	Why it matters
Property value	Sets the ceiling, via the lender’s maximum LVR
Existing debt	Must be repaid from the new loan if refinancing
Property type	Houses, units, commercial and rural are treated differently
Location	Metro and major regional centres are easier to lend on
Exit or serviceability	How the loan will be repaid or carried

Try the property equity estimator to see how much usable equity you might have at different LVR settings.

How fast can a first mortgage fund?

Up to $5m is possible within 24–48 hours on a clean deal. “Clean” means:

1. A straightforward title — the borrower or guarantor is the registered owner, with no unusual caveats or encumbrances.
2. A quick valuation — many deals can rely on a desktop or short-form valuation; larger or unusual properties may need a full one.
3. A prompt payout figure — if refinancing, your current lender needs to issue it.
4. Documents ready — ID, a rates notice, the latest loan statement and business details.

Settlement is usually done electronically. ARNECC coordinates the national approach to regulating electronic conveyancing between the states and territories, and settling electronically rather than through a paper exchange is part of why a property loan can complete quickly once everything’s signed.

If the property’s ready to go, you can begin your application and have the details on hand for the call.

First mortgage or second mortgage — which is faster?

Often the second. A second mortgage leaves your existing home loan untouched, so there’s no payout figure to wait for. But it has limits:

	First mortgage	Second mortgage
Amount	Larger	Usually smaller
Term	Longer	Usually shorter
Existing loan	Refinanced or none	Stays in place
Main delay	Valuation, payout figure	Existing lender’s consent (sometimes)
Cost	Generally lower	Generally higher

An illustrative example: a Melbourne family-run printing business needs $900,000 to buy a competitor’s equipment and client list. The owners have a commercial factory worth about $2.4m with $600,000 owing to the bank. A first mortgage that refinances the bank debt and releases the extra $900,000 gives them one loan and a lower cost than layering a second mortgage. Because the bank needs a few days to issue a payout, settlement is planned for day three rather than day one.

Bank or private lender?

Banks can offer longer terms and lower pricing, but their timelines are measured in weeks and their policies are rigid around credit history and documents. Private lenders focus on the property and the exit, can decide in hours and settle in days, and charge more for that speed and flexibility. Many businesses use a private first mortgage to move fast, then refinance to a bank once the urgency has passed.

What documents does a first mortgage need?

• ID for every borrower and guarantor.
• Council rates notice for the property.
• Latest statement for any existing loan on the property.
• Business details: ABN, ACN if a company, and what the funds are for.
• Depending on the deal, bank statements, a BAS or financials, and evidence of the exit.

Our documents checklist goes into each one.

How long can a first mortgage business loan run?

Terms vary widely depending on the lender and purpose. Bank business loans secured by a first mortgage can run for many years; private and non-bank first mortgages are often shorter — commonly from several months to a few years — because they’re priced for speed and flexibility.

A common pattern for businesses that need to move quickly:

1. Use a faster first mortgage from a private or non-bank lender to meet the deadline — a settlement, a tax debt, an acquisition.
2. Get the business bank-ready in the months that follow: lodge returns, tidy the accounts, let a year of strong trading show in the statements.
3. Refinance to a longer, lower-cost loan once the bank’s criteria are met.

This approach costs more for the first period, but it means the business doesn’t miss the opportunity while waiting for a bank. The key is to plan step three from the start, so the faster loan doesn’t run past its term while you’re still getting ready.

Talk to a real person about your property

If you have property and need a larger amount, a first mortgage may be your best combination of size and speed. There’s no credit check to ask, your details stay with one team, and a specialist calls you to talk through the property and the plan. Please give the property value and loan balances as accurately as you can — it’s what lets us price and time the deal properly. Start your application.