Refinancing

Refinance a business loan, or pay out a private lender

HomeSec refinances business facilities secured by property, from $20,000 to $5,000,000, paying out banks and private lenders directly at settlement. The replacement has an open term with no end date, no repayments for the first six months and no fee to extend, which is usually the reason for moving rather than the rate.

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Most refinances here are about shape, not price

Businesses refinance a home loan to save a quarter of a per cent. Businesses refinance a commercial facility because the facility has stopped fitting the business — and the thing that stops fitting is almost never the interest rate. It is a daily debit that takes money the business has not earned yet. It is a fixed end date that arrives before the project does. It is a lender who will only extend by rewriting the loan and charging for it. It is a covenant that moved for reasons outside your control and a bank that withdrew.

Those are structural problems, and no amount of trading harder fixes them. What fixes them is a facility with a different shape. 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 gets refinanced, and what replaces it

What you have	Why it hurts	What replaces it
A daily or weekly direct debit	Money leaves the account before it can be used, and a quiet week still costs the same as a busy one.	Replaced with interest-only, or interest capitalised for up to six months.
A fixed end date arriving	The facility expires and the lender wants it repaid or rewritten, usually at a worse price and always at their timing.	An open term with no end date, no rollover fee and no rewriting.
A facility that has been called	A bank withdrawing, repricing or demanding repayment because a covenant moved, not because you missed a payment.	Paid out in full, and the relationship ends on your terms.
A minimum interest period	Interest charged for months you did not use, because the facility was written with a floor in it.	No minimum. Repay early and the unused capitalised interest is rebated.
A lender that will not extend without a rewrite	Every extension is a new application, new fees and new legals.	Extend indefinitely, with no fee and no new documents.
Personal guarantees stacked across facilities	Several lenders, each with a guarantee, and no single view of what is owed.	One facility, one security position, one number.

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.

A refinance usually needs the payout figure plus a margin for the costs of settlement, so ask your current lender for a written payout figure early. It is the single number that decides whether the refinance works, and it is the one thing we cannot obtain for you.

Before you move: the arithmetic worth doing

Get the payout figure in writing. Not the balance — the payout. They are different numbers, and the gap is made of early repayment fees, discharge fees, minimum interest periods and prepaid interest that may or may not be refunded.
Convert both options to dollars over the period you will actually hold the money. A lower rate with a minimum interest period can cost more than a higher rate without one. The calculator does this, with whatever numbers either lender has given you.
Count the extension. If there is any chance you will need longer, price the extension as well. No fee to extend is worth more than a small difference in rate on a loan whose end date you cannot be certain of.
Ask what happens if you repay early. Here, unused months of capitalised interest are rebated and there is no penalty. Elsewhere, ask, and get it in writing.

When refinancing is the wrong move

If the business is losing money on every job, refinancing changes who is owed and not whether it can be repaid. A better-shaped facility buys time, and time is only valuable if something is going to change inside it — a contract, a sale, a season, a restructure. Where nothing is going to change, the honest advice is to talk to an accountant or a registered insolvency practitioner rather than to another lender, and we will say so on the first call.

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.

✓Upfront: a small commitment fee, payable only once your loan is conditionally approved

✓Valuation fee: none — we don't use valuers

✓Monthly or line fees: none — no monthly, line or account-keeping fees

✓Fee to extend: none — no rollover fees, legal fees or rewriting the loan to extend

Questions we get on the phone

Can you pay out another private lender?

Yes, and it is a large part of what we do. The payout figure comes from your current lender, we settle directly with them, and the balance of the loan is drawn to you. Where that lender's facility is short-dated or has a fixed end date arriving, this is usually the reason for the call.

Can you refinance a business loan from a bank?

Yes, where there is enough equity in property. If the bank has called or repriced a facility, or a term is expiring and they will not extend, we can pay it out — the important part being that our term is open, so you are not simply buying twelve months before the same problem returns.

I have a cashflow loan taking money daily. Can that be paid out?

Yes, where the equity supports it, and it is the single most valuable version of this file. A daily or weekly debit facility takes money out of the business regardless of what the business earned that day. Replacing it with a property-secured loan that requires no payment for six months hands the cash cycle back.

Is this the same as debt consolidation?

Related, but not the same. Debt consolidation is about several creditors — the ATO, suppliers, cards, a couple of facilities — combined into one. This is about one facility whose shape is wrong. If you have several, the debt consolidation page is the better starting point.

Will refinancing cost me a break fee with my current lender?

That depends on their documents, not ours. Ask them for a payout figure and a discharge statement in writing — it will show any early repayment fee, discharge fee, minimum interest period or unused prepaid interest. Take that figure and compare the total cost of staying against the total cost of moving. We charge no early repayment fee ourselves.

How long does a payout take?

Our part is as little as 24 hours from a clean, complete scenario. The part outside our control is how quickly your existing lender issues a discharge figure and signs the discharge — a day or two for most Australian banks, and variable for a private lender. Request the payout figure on the same day you call us.

Do I need financials to refinance?

No. No financial statements, tax returns or BAS, and no serviceability test. We assess the equity and how the loan is repaid, which is why a business that is mid-recovery can refinance here when it cannot refinance at a bank.

What if my credit file was damaged by the facility I am trying to escape?

Defaults, arrears and judgments are considered and are never disqualifying on their own. A person reads every file and there is no score threshold. A credit file damaged by an expensive facility is a reason to refinance, not a reason to be refused.

Can I consolidate a second and a third loan into one?

Where the equity supports it, yes. We do not lend in third position behind two existing mortgages, but paying both out and taking a single second mortgage is a common structure and usually leaves the borrower in a better position than either.

What happens at the end of the term?

There is no end. The term is open from one month with no maximum, no rollover fee, no legal fee and no rewriting of the loan to extend. That is the whole point of refinancing into it.

Ask for the payout figure today

Whatever you decide, request a written payout and discharge figure from your current lender now — it takes them a day or two and nothing can be settled without it. 1300 93 83 87, Mon–Fri, 8:30am – 5:30pm Melbourne time.

Related situations

Lending against property Small business loans Fast private mortgages Second mortgages First mortgages No doc business loans Commercial loans Fast business loans Start-up business loans Caveat loans Open term, no minimum Equity release Working capital Secured against your home Buying a business

Sixty seconds, no documents

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.

See if you qualify Call 1300 93 83 87Mon–Fri, 8:30am – 5:30pm Melbourne time

Reviewed by Jason Brockmuller, Joint Chief Executive