Equity release business loans
An equity release business loan draws on the equity in property you already own, for a business purpose, without refinancing your existing mortgage. HomeSec lends from $20,000 to $5,000,000 to 80% of a residential property's value or 70% of a commercial one, with no financials, no valuation and settlement in as little as 24 hours.
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 qualifyEquity that is doing nothing is still costing something
Most business owners in Australia hold their wealth in property and run their business on whatever cash the business itself produces. That works until the business needs more capital than a month's trading throws off — for a discount worth taking, a contract worth winning, or a site that has come up once. At that point there is often several hundred thousand dollars of equity sitting in a property, unavailable, while the business turns down the opportunity or pays a great deal more for unsecured money.
Releasing equity is simply making that asset usable. It is the cheapest form of business capital available to most owners, because it is secured — an unsecured cashflow loan costs a multiple of a property-secured one, and takes daily or weekly repayments on top.
How much you can release
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.
| Property | Value | Owing | Ceiling | Available |
|---|---|---|---|---|
| Home, owned outright | $1,100,000 | — | 80% — $880,000 | $880,000 |
| Home with a bank loan staying in place | $900,000 | $400,000 | 80% — $720,000 | $320,000 |
| Investment unit | $620,000 | $310,000 | 80% — $496,000 | $186,000 |
| Home and investment unit together | $1,520,000 | $710,000 | 80% — $1,216,000 | $506,000 |
| Commercial premises | $1,400,000 | $500,000 | 70% — $980,000 | $480,000 |
Indicative only. Value is our own assessment of the security, not a formal valuation.
Your existing mortgage stays exactly where it is
This is the part most people expect to be the hard part, and it is not. We do not refinance your home loan. We take a second mortgage behind your existing lender, or a caveat where the settlement date will not allow time for their consent, and your current facility continues untouched — same rate, same term, same lender, no break costs and no reassessment of a loan you may well not be able to get again on the same terms today.
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.
What business owners release equity for
- Buying stock, plant or equipment. Cash buys better than finance does. A discount for paying outright, or an asset an equipment financier will not touch because of its age, is frequently worth more than the cost of the money.
- Taking an opportunity with a deadline. A site, a competitor's business, a clearance line, a lease that has come up. The chance is short-dated and a bank's process is not.
- Funding growth before it pays for itself. A second location, a new crew, a major account. Growth consumes cash months before it produces any, and that gap is not a sign of weakness.
- Replacing expensive short-term debt. A daily-debit cashflow loan, a card balance, or a facility with a fixed end date replaced with an open term and no payments for six months.
- Putting capital into a second property. Releasing equity from one property to fund a deposit or a purchase for the business.
- Paying out a partner or a family member. A buyout with a date on it, funded from equity rather than from a sale.
What it cannot be used for
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.
The money has to be for the business or for a commercial investment. Releasing equity to renovate the kitchen, pay school fees, buy a car for the family or fund a holiday is consumer credit, and we do not write it — not as a matter of appetite but because it is a different kind of lending with a different licence behind it. If part of what you are funding is personal, say so on the first call and we will tell you immediately whether the file works.
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
What is an equity release business loan?
How much equity can I release?
Do I have to refinance my existing home loan?
Is this the same as a bank's cash-out or equity loan?
Can I release equity from an investment property?
Can I use my home if it is my only property?
Is there a reason not to do this?
What does it cost to hold?
How long can the loan run?
How fast is it?
Tell us the property, what is owing on it and what the money is for, and you will have an indicative figure 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