Business loans secured against your home
A home can secure a business loan whether it is owned outright or mortgaged. HomeSec lends to 80% of a residential property's value less what is already owing, from $20,000 to $5,000,000, behind your existing lender and without refinancing it. Everyone on the title must sign, and the purpose must be for the business.
See if you qualify in sixty seconds. No credit check to apply, no financials, no payments for the first six months. That's the HomeSec Advantage.
See if you qualifyThree things worth knowing before the loan itself
Borrowing against the family home is the most consequential financial decision most business owners make, and it is usually discussed as though the only question is how much. There are three questions that matter more, and they should be answered before anyone talks about an amount.
Is it consumer credit, and does that protect me?
HomeSec provides credit wholly and exclusively for business and investment purposes. Credit provided for those purposes is not regulated under the National Consumer Credit Protection Act 2009 (the NCCP Act), and the protections available to consumer borrowers do not apply.
That is worth reading twice. A loan for a business purpose is not regulated consumer credit even when the security is your home, so the protections that apply to a regulated home loan — responsible lending obligations and the consumer hardship provisions — do not apply here. What decides it is the purpose of the money, not the property behind it. Any lender who tells you otherwise about a business loan is either confused or hoping you are.
Who has to sign, and what are they signing?
Everyone on the title, without exception. If the home is in joint names with a spouse or partner who has nothing to do with the business, they sign as a mortgagor and put their share of the house behind your company's debt. They should understand exactly that before they do it, and we would encourage independent legal advice — not as a formality, but because it is the single most common thing people later say they wish they had understood.
What actually happens if it goes wrong?
The security can be enforced and the property can be sold to repay the debt. There is no version of secured lending where that is not true, and a lender who is vague about it is doing you no favours. What can be managed is the probability: lending against a documented exit rather than an intention, keeping the loan open-term so that a delay cannot by itself cause a default, and declining files where the business is losing money on every job rather than running short between two good ones. We decline those, and we would rather say so in the first ten minutes than take a commitment fee.
How much you can borrow
Take the property's value, multiply by 80% for residential security or 70% for commercial, and subtract what is already owing on it. What is left is roughly what is available, between $20,000 and $5,000,000. Several properties can be added together, and the borrower does not have to be the owner — companies, trusts and sole traders — including start-ups, with everyone on title signing. Up to 80% on residential and 70% on commercial. Lower on large acreage, and LVRs may reduce on properties worth less than $800,000.
Your mortgage is not touched
We do not refinance your home loan. We take a second mortgage behind your existing lender, or a caveat where the timing will not allow their consent. Your facility continues on the same rate and the same term, no break costs arise, and your bank does not reassess a loan that may have been written in a very different rate environment.
A person decides every loan. Every application is read by a Lending Manager and every credit decision is signed off by a person. We do not use artificial intelligence to assess, approve, decline or price a loan.
The alternative worth considering first
If you own an investment property as well as your home, use the investment property. It is assessed on exactly the same basis — to 80% of value — and it keeps the house the family lives in out of the transaction entirely. Where the equity in the investment property is enough on its own, there is no reason to offer the home, and we will structure it that way if you tell us it exists.
From the call to the money
Tell us the deal
Amount, purpose, timing, the property and how the loan gets repaid. A Lending Manager gives you an indicative answer on that call — usually in minutes.
Minutes
Conditional approval
Photo ID, a rates notice and your most recent mortgage statement. That is the whole list, and it takes about fifteen minutes.
About 15 minutes
Funds released
As little as 24 hours from a clean, complete scenario. Paid where you tell us — to your account, or straight to the ATO.
As little as 24 hours
What it costs
Priced per file, on the property, the position, the amount and the exit. No rate is published, because a rate with "from" in front of it is the best file's number. How it is priced, and every fee that exists.
Questions we get on the phone
Can I use my house as security for a business loan?
Do I have to refinance my home loan?
Is a loan secured by my home regulated consumer credit?
Does my spouse or partner have to sign?
What happens to my home if the business cannot repay?
Can I still sell or refinance my home while the loan is in place?
How much can I borrow against my home?
Do you need my payslips, tax returns or financials?
Will my bank find out, and will they mind?
Can I use an investment property instead?
Tell us the property, what is owing on it, who is on the title and what the money is for. You will have an indicative figure and a straight answer on the call. 1300 93 83 87, Mon–Fri, 8:30am – 5:30pm Melbourne time.
See if you qualify in sixty seconds
Three short questions, no credit check to apply and no financial statements. A Lending Manager reads it and calls you back with a real answer — not a call centre, not an algorithm.
That's the HomeSec Advantage.
Reviewed by Jason Brockmuller, Joint Chief Executive