Instant equity release business loan
Equity release for business purposes means borrowing against the difference between a property's value and what is owed on it, without refinancing the existing loan. HomeSec releases equity to a combined 80% of value on residential security or 70% on commercial, from $20,000 to $5,000,000, generally settling within 24 to 72 hours of approval.
Equity release means borrowing against the gap between what a property is worth and what is owed on it. For a business owner it is usually the largest pool of capital available and the most under-used, because most people assume releasing it means refinancing.
It does not have to.
Two ways to release it
Refinance. Replace the existing loan with a larger one. Every dollar of the original balance is repriced at today’s rate, break costs apply if it was fixed, and there is a full credit assessment wanting financial statements and a clean file. Three to eight weeks.
Second mortgage. Leave the existing loan exactly as it is and register behind it, pricing only the money you actually need. Twenty-four to seventy-two hours.
If your first mortgage was written when money was cheaper, the second route is almost always the better arithmetic. Releasing $300,000 by refinancing a $690,000 loan means repricing $990,000 to get at $300,000.
What is available
Combined lending to 80% of value on residential security, 70% on commercial. Value × ceiling − existing debt.
| Value | Owing | Ceiling | Available |
|---|---|---|---|
| $780,000 | $410,000 | 80% — $624,000 | $214,000 |
| $1,250,000 | $690,000 | 80% — $1,000,000 | $310,000 |
| $2,400,000 | $1,100,000 | 80% — $1,920,000 | $820,000 |
No sworn valuation. We form our own view of the security, which removes a cost and roughly a week from the process.
What “instant” honestly means
Not instant. Our published standard is a conditional answer on the first phone call, a Letter of Offer within two business hours, contracts within four, and cleared funds within 24 hours of signing.
That holds when the security is straightforward, you can sign electronically, and identification is verified the same day. Where the property sits in a company or trust, where a first mortgagee’s consent is needed, or where the title carries an existing caveat or writ, it takes longer — and you will hear that on the first call rather than on the day.
What you can use it for
Any genuine business or investment purpose: clearing an ATO debt, covering a settlement shortfall, buying stock or equipment outright, buying out a partner, funding a claim while it is disputed. Not personal, domestic or household purposes — that is regulated credit and we do not write it.
The part worth thinking about carefully
Equity in a home is the last line of defence for most families. Releasing it for a timing problem with a dated exit is ordinary commercial sense. Releasing it to cover an ongoing trading loss is not, and we decline those files.
Reviewed by Jason Brockmuller, Joint Chief Executive