Second Mortgage Alexandra Hills QLD: $125,000 Commercial Loan

In short: Innovate Funding settled a $125,000 second mortgage behind a major bank first mortgage on an Alexandra Hills, Queensland residence in six business days. The 12-month interest-only facility funded a commercial cashflow gap for an established Redland City small business and was refinanced into the borrower's bank facility once the seasonal trading dip passed.

Deal snapshot

Location	Alexandra Hills, QLD (postcode 4161, Redland City)
Loan amount	$125,000
Loan type	Second mortgage (private lending)
Security	Owner-occupied residential property
Combined LVR	Approximately 68%
Term	12 months, interest only
Settlement timeline	6 business days from enquiry
Exit strategy	Refinance to bank business facility post-trading recovery
Purpose	Working capital and supplier payment

The borrower: an established Redland City small business

Alexandra Hills sits in Redland City, on the bayside fringe of metropolitan Brisbane between Capalaba and Cleveland. Postcode 4161 is characterised by family residential streets, a stable owner-occupier profile, and a strong base of small and medium businesses serving the Redland Bay catchment. It is the kind of suburb where the property market is steady rather than dramatic, and where most small business owners hold significant equity in their homes.

Our borrower had operated an established trade-services business in the Redland City area for over 12 years, employing five staff and turning over approximately $2.4 million annually. The business was profitable, the borrower's home in Alexandra Hills had been owned for over a decade, and the existing bank first mortgage was small relative to the property's current market value.

The pressure point was a classic small-business problem: a major commercial customer had unilaterally extended its payment terms from 30 days to 60 days, and a key trade supplier was unwilling to extend credit terms to bridge the gap. The business needed approximately $125,000 in cleared funds within ten days to keep deliveries flowing.

Why the bank could not move in time

The borrower's bank was sympathetic but slow. A top-up to the existing first mortgage required full re-application, a new property valuation, and updated business financials reflecting the most recent quarter. The bank's quoted timeline was four to six weeks - workable for many things, but not for a supplier whose patience was already tested.

A second mortgage sat behind the existing first mortgage without disturbing it, preserving the bank's position and the borrower's competitive home loan rate. Innovate Funding could assess the security and exit independently, and the existing bank simply needed to sign a deed of priority capping the second mortgage at the agreed amount.

How Innovate Funding structured the Alexandra Hills facility

Indicative terms

• Loan amount: $125,000

• Loan type: registered second mortgage

• Security: Alexandra Hills owner-occupied residential property

• Combined LVR: approximately 68%

• Term: 12 months, interest only, with flexibility to repay early without penalty

• Use of funds: payment of trade supplier ($95,000), working capital reserve, and Innovate Funding's establishment costs

• Exit: top-up of the bank first mortgage at month nine, once the customer's extended payment terms had been absorbed and reflected in BAS cycles

Process and timeline

Indicative terms were issued the same day as the broker submission. The borrower had a recent rates notice and a clean ID pack ready, the first mortgage bank responded to the priority deed request within 48 hours, and a short-form valuation came back inside 72 hours. Settlement was booked on day six - a particularly fast turnaround driven primarily by the bank's prompt response on the priority deed.

Trade supplier payment was made the day after settlement, and the supplier confirmed account reactivation and resumed deliveries the following business day.

Outcome: trading restored, exit achieved early

Within two months, the business had absorbed the customer's extended payment terms by tightening its own collections cycle on its smaller accounts. By month six, two clean BAS cycles reflected the new working rhythm, and at month nine the borrower's broker successfully arranged a top-up to the bank first mortgage that paid out the Innovate Funding second mortgage in full.

The borrower exited the facility three months early, with the bank consolidation pricing meaningfully below the second mortgage rate. The combined cost of the facility - including establishment costs and interest for nine months - was less than the gross margin lost on the deliveries that the supplier was about to suspend.

Why Alexandra Hills and the Redland City suit private second mortgage lending

Bayside Brisbane suburbs like Alexandra Hills, Capalaba, Birkdale and Cleveland present a particularly favourable security profile: owner-occupied residential property, long average ownership tenures, and a stable buyer pool. Sales activity is healthy without being volatile, and recovery, if ever required, is well supported. The Redland City local government area is administered by Redland City Council, and suburb-level data is published by Domain and realestate.com.au. Census-level demographic information is maintained by the Australian Bureau of Statistics.

When a small-ticket second mortgage is the right answer

Second mortgages of $100,000 to $250,000 are one of the most common use cases in Australian private lending and tend to suit:

• Established small businesses with a temporary cashflow gap rather than a structural problem

• Owners with significant residual equity in an owner-occupied home

• Existing bank first mortgages that are well-priced and worth preserving

• Time-bound need: supplier payment, ATO clearance, contract delivery, BAS settlement

• Clear exit within 6-12 months: bank top-up, refinance, asset sale or contract receivable

Innovate Funding's business loan solutions include second mortgage facilities from $50,000 up to several million, structured to match the underlying commercial need rather than forcing borrowers into a one-size-fits-all product.

FAQs - Alexandra Hills and Redland City second mortgages

How fast can a second mortgage settle in Alexandra Hills?

Five to ten business days is typical, with the existing first mortgagee's response time on the deed of priority being the most common limiting factor. The Alexandra Hills case study above settled in six business days, helped by an unusually quick response from the bank.

Will my bank find out about the second mortgage?

Yes - the bank holding the first mortgage must be notified and must execute a deed of priority before the second mortgage can be registered. Most major banks will allow a second mortgage behind their facility subject to that priority cap.

What loan amounts can be funded as a second mortgage in QLD?

Innovate Funding considers second mortgage facilities from approximately $50,000 to several million dollars in Queensland, with the ceiling determined principally by combined LVR, security location and exit strategy.

Are second mortgage interest payments tax deductible for a small business?

Where loan funds are used wholly for commercial or business purposes, interest is generally deductible to the borrowing entity. Always obtain advice from a registered tax agent on your specific circumstances.

What happens if my business cannot exit at month 12?

Innovate Funding will consider an extension on commercial terms where the underlying exit remains sound. Extensions are most commonly granted where the original exit pathway is delayed by external factors rather than fundamentally compromised.

Talk to a private lending specialist

If you operate a small or medium business in Alexandra Hills, Redland City or anywhere in South East Queensland and need a second mortgage that can settle in days, contact the Innovate Funding team for a confidential discussion. We assess deals on the merits of the security and the exit strategy, not just servicing calculators.

Learn more about our private lending solutions or browse other case studies on the Innovate Funding blog.

Disclaimer: This case study is published for general information only. Loan terms, interest rates and outcomes vary and depend on the specifics of each transaction. Innovate Funding (Australian Credit Licence applicable to consumer credit; commercial transactions are unregulated) lends to commercial and investment borrowers across Australia. Always obtain independent legal and financial advice before entering a loan.