HomeSec for brokers: what we can do for your clients

• $20k to $5MFirst and second mortgage business loans
• 24 hoursFunds in your account in as little as 24 hours, from a clean, complete scenario
• 6 monthsUp to 6 months with no repayments
• No valuerNo valuation before approval
• 1st & 2ndFirst and second mortgages, caveats where they fit

The HomeSec difference, in five questions

The guide puts five questions to us and to most other private lenders. They are the questions your client will ask you, so here are the answers in full.

Why brokers use a HomeSec business loan

A client does not come to you for a business loan when things are calm. They come when a crisis has landed on them, or an opportunity has turned up that is too good to miss, and either way they need the money before a bank can finish reading the file. That is the deal we are built for. You keep the client, the client gets the funds in their account, and you are the broker who found the answer.

Your brokerage is paid the same day the loan settles, with no invoice to send and no clawback if the client repays early. It is added to the loan, so the client still receives the amount they asked for.

How a deal moves, from lodgement to settlement

1. Lodge your application

   In the partner portal at app.homesec.com.au, as a full application or a scenario. You are here.

2. We assess it and issue a conditional approval

   A Lending Manager reviews the file and your client receives a conditional approval with every detail and cost set out.

3. Your client signs it digitally

   Once it is signed, with photo ID, a rates notice and the latest mortgage statement, the file moves to due diligence.

4. A handful of conditions are met

   Title, identity, the existing lender's position and the exit are confirmed. Due diligence runs alongside, not after.

5. Loan contracts are issued

   The client signs in the presence of their lawyer and the signed contracts come back by email.

6. Settled, and your fee paid

   Funds in your client's account and your brokerage paid the same day. As little as 24 hours from a clean, complete scenario.

Funding times are from a clean, complete scenario. All loans are subject to assessment and approval.

Which clients it suits

A HomeSec loan is secured by property and decided on two things: the equity, and how the loan will be repaid. That opens it to clients a bank or a cash flow lender cannot help.

Security: first mortgages, second mortgages and caveats

Most HomeSec loans sit behind an existing bank loan as a second mortgage, which is what makes them fast: the bank's loan stays exactly where it is. Where there is no existing debt, or the client wants to clear it, we lend as first mortgagee.

Caveats

In every state except New South Wales and Queensland, a smaller or shorter loan can be secured by a caveat over the property. It is quick to lodge and leaves the existing loan untouched. In New South Wales and Queensland we use a registered second mortgage instead. A caveat can later be converted to a registered second mortgage if the loan runs longer than planned or the client tops up.

The client's home

The director's own home is accepted as security, and several properties can be offered together to reach the amount. The borrower is the business, and the purpose must be a business purpose.

A real Lending Manager, and an answer the same day

Send the Simple Seven and a real Lending Manager calls you back with an indicative answer, usually within 30 minutes in business hours. Not a portal message and not a scorecard: a person who has read the deal, who can tell you what it needs and who works for the lender funding it. If the answer is yes, lodge it in the portal with photo ID, a rates notice and the latest mortgage statement, and the conditional approval follows.

Watch the Simple Seven in 42 seconds →

Repayments: up to 6 months with none

This is the line that changes the conversation with a client under pressure. For up to the first six months there are no repayments. The interest for that period can be prepaid out of the loan at settlement, or added to the loan, so nothing comes out of the business while it deals with the reason it needed the money.

After that the client can keep the loan on monthly interest-only payments, reduce it in lump sums whenever cash comes in, or repay it in full. There are no daily or weekly debits.

Repay early, extend, or keep it as long as it is needed

There is no early repayment penalty and no fee to extend. If a refinance takes longer than the bank promised, the client keeps the loan on the same terms and nobody rewrites anything. If the money arrives early, they repay early and stop paying interest. The term fits the business, not the other way round. Unused prepaid interest can be rebated on an early payout, under the loan documents.

When a refinance repays the loan

For many clients the exit is a bank. Our loan pays the tax debt or settles the purchase now; you then refinance the client to a bank or a lower-cost lender once their financials, valuation and credit approval are in order. That is two deals for you, and the client never missed the deadline. Other common exits are the sale of a property or a business, a large receivable being paid, or a contract milestone.

The exit does not have to be today. It has to be real, with a date or a process behind it, and we will ask about it on the first call. Broker A or Broker B shows the pattern in a two-minute role play.

Every figure and condition is subject to assessment and approval and set out in the loan documents. The brokers' lending criteria are on the brokers page, and the client-facing costs on what it costs.

Reviewed by Jason Brockmuller, Joint Chief Executive