Business loans secured by property
By Bhavi Chadha · Updated 25 October 2026
Use your home or commercial property as security to borrow more, for longer, at a lower cost than an unsecured loan, from banks, non-banks and private lenders.
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In a nutshell
A business loan secured by property uses your home, an investment property or commercial property as security, usually through a first or second mortgage. Because the lender has property behind the loan, you can usually borrow more, for longer and at a lower cost than with an unsecured loan. Banks and some non-banks offer property-secured business loans over up to 25 to 30 years, while private lenders offer short-term first and second mortgage loans that can settle in days.
At a glance
- Security
- Residential or commercial property
- Mortgage
- First or second
- Bank and non-bank terms
- Up to 25 to 30 years
- Private lender terms
- Usually 3 to 24 months
- Loan amounts
- $30,000 to $10 million+
- Interest rates
- Vary by lender and loan
How property-secured business loans work
When you offer property as security, the lender registers a mortgage over it. If you can't repay, the lender can recover the debt from the property. In return for that security, lenders can usually offer larger amounts, longer terms and a lower cost than an unsecured loan.
The property can be your home, an investment property or a commercial property, owned by you, a director or another guarantor. The loan itself must be for business purposes.
First mortgage or second mortgage?
- First mortgage: the lender is the only or first-ranking lender on the property. This suits property with no loan, or refinancing your existing loan into one larger facility. It allows the largest loans and the lowest cost.
- Second mortgage: the lender ranks behind your existing home loan and lends against the remaining equity. This avoids refinancing your home loan, but it costs more and usually runs for a shorter term. See second mortgage business loans.
- Caveat: a caveat on the title instead of a registered mortgage, for urgent, short loans. See caveat loans.
Bank, non-bank or private lender?
Banks offer the lowest cost and terms of up to 25 to 30 years, but want full financials and take longer. Non-bank lenders such as Liberty and Prospa offer property-secured business loans with more flexible documentation. Private lenders lend mainly against the property and the exit, over short terms, and can settle in days. Most private lenders in Australia require property as security.
When property security makes sense
- You need more than unsecured lenders will offer, often above a few hundred thousand dollars
- You want a longer term and lower repayments
- Credit issues, ATO debt or a short trading history rule out unsecured lenders
- You need funds quickly and can repay from a sale or refinance
Costs and risks
Allow for valuation, legal and establishment costs, and with private lenders, prepaid interest and extension fees. Your property is at risk if you can't repay, so make sure the repayments, or the exit for a short-term loan, are realistic.
Eligibility and documents
What lenders usually look for
- Residential or commercial property owned by you, a director or a guarantor
- Enough equity for the loan, after any existing mortgage
- For banks and longer terms, financials showing the business can service the loan
- For private lenders, a clear exit such as a sale or refinance
Documents you may need
- Identification for each borrower and guarantor
- Rates notice or title details, and statements for any existing mortgage
- Business bank statements
- For banks and larger loans, financial statements, tax returns and BAS
Requirements vary by lender. All lending is subject to each lender's credit criteria and assessment.
What lenders publish about property-secured business loans
Here's a selection of what banks, non-banks and private lenders publish about loans secured by property. It isn't a full list of lenders or a ranking.
- Equity-One lends $50,000 to $10 million on first or second mortgages to commercial borrowers, over 1 month to 3 years with interest-only repayments, and says borrowers can repay early without break costs. Profile →
- Liberty offers secured and low doc business loans of up to $2 million over up to 30 years. Profile →
- Prospa's Business Loan Plus lends $500,000 to $1 million, backed by property security. Profile →
- Bank of Sydney's Residentially Secured Business Loan lends up to 80% LVR against residential property, over up to 30 years. Profile →
- IMB Bank lends $100,000 to $10 million over up to 25 years, secured by residential or commercial property. Profile →
- RELI Capital (formerly Gippsreal) lends $250,000 to $5 million on first mortgages at up to 65% LVR, interest only over 3 to 18 months, and says it can settle in as little as 7 working days. Profile →
- Platinum Mortgage Securities arranges property-secured business loans of $250,000 to $4 million, with larger loans on application, and says it gives decisions in principle within hours. Profile →
- Balmain offers commercial loans of $500,000 to more than $100 million, secured against land, construction, property, equipment and debtors. Profile →
A sample of lenders, as published by each lender, checked 25 October 2026.
Bank, non-bank or private lender?
Loan term
- Bank
- Up to 25 to 30 years
- Non-bank
- Up to 30 years with some lenders
- Private lender
- Usually 3 to 24 months
Speed
- Bank
- Usually weeks
- Non-bank
- Days to weeks
- Private lender
- Often days
Documents
- Bank
- Full financials
- Non-bank
- Full or low doc
- Private lender
- Focused on the property and exit
Cost
- Bank
- Usually lowest
- Non-bank
- Usually higher
- Private lender
- Usually highest
Best for
- Bank
- Strong financials and time
- Non-bank
- Self-employed and low doc borrowers
- Private lender
- Urgent needs or credit issues, with a clear exit
| Bank | Non-bank | Private lender | |
|---|---|---|---|
| Loan term | Up to 25 to 30 years | Up to 30 years with some lenders | Usually 3 to 24 months |
| Speed | Usually weeks | Days to weeks | Often days |
| Documents | Full financials | Full or low doc | Focused on the property and exit |
| Cost | Usually lowest | Usually higher | Usually highest |
| Best for | Strong financials and time | Self-employed and low doc borrowers | Urgent needs or credit issues, with a clear exit |
Related guides
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FAQs
Questions about business loans secured by property
Yes. Many lenders accept residential property, including your home, as security for a business loan, through a first mortgage or a second mortgage behind your home loan. The loan must be for business purposes, and your home is at risk if you can't repay.
With a first mortgage, the lender is the only or first-ranking lender on the property, which allows larger loans at a lower cost. With a second mortgage, the lender ranks behind your existing home loan and lends against the remaining equity, usually for a shorter term and a higher cost.
Lenders usually lend up to a percentage of the property's value, across all loans on it. Banks may go to 80% or more of a residential property's value, while private lenders often cap total lending at about 65% to 80%. Your income and the loan's purpose also matter, especially with banks.
Usually. Property security reduces the lender's risk, so bank and non-bank secured loans generally cost less than unsecured loans. Short-term private loans are the exception: they cost more but are faster and more flexible.
Often. Private lenders focus mainly on the property and the exit, and some non-bank lenders accept past credit issues with property security. Expect a higher cost.
Private lenders can often settle within days. Banks and longer-term non-bank loans usually take one to several weeks, mainly because of valuations and legal work.
No. There's no cost to you for our service. We're paid by the lender when your loan settles, and there's no obligation to proceed.
This page is general information only and isn't credit, tax or financial advice. Lender details are taken from each lender's published information, checked 25 October 2026, and can change. All lending is subject to each lender's credit criteria and assessment.