Property-secured business loan call prep: property details, equity and the questions that follow

Property is still the key that opens most business lending doors. The Reserve Bank’s October 2025 Bulletin found that around half of small business loans are backed by residential property. If you own a home or a commercial building with equity in it, you probably have more options than you think — and more questions to prepare for.

This page covers what the specialist will ask about the property, what to have in front of you, and what to ask back before you put property on the line.

What will the specialist ask about the property?

The questions follow a logic: what’s there, who owns it, what’s already owed, and how the new loan gets repaid.

• Where is it, and what kind of property is it? House, unit, rural block, shop, warehouse, office.
• Who owns it? You personally, you and a partner, a company, or a trust.
• Roughly what’s it worth? A sensible estimate based on recent nearby sales is enough to start.
• What’s owed on it now, and to whom? Each existing loan and lender.
• Are the existing repayments up to date?
• First or second mortgage? Are you refinancing the existing loan, or borrowing behind it?
• What are the funds for? The purpose must be business.
• What’s the way out? Trading income, a sale, a refinance to a bank later, or money due in.

What should I have ready?

Have ready	Why it matters
Property address(es)	Lets the specialist gauge the property type and location
Owner’s full names, or company or trust name	Every owner may need to be part of the loan or give consent
A realistic value estimate	Recent nearby sales are a good guide
Current loan statement(s) for the property	Shows the balance, lender and repayment history
Council rates notice	Confirms ownership details and the property’s address on title
The purpose and amount	Shapes the structure and security needed
Your planned exit	Critical for short-term loans in particular

The call-prep tool builds this list for your amount and state in about a minute.

Why does ownership change the conversation?

Because the lender needs the right people to sign. If the property is in your name and your partner’s, both usually need to be involved. If a company owns it, the directors need to act for the company. If it sits in a family trust, the trustee signs, and the lender will want to see the trust deed. None of this is a barrier — it’s paperwork — but it’s much easier when it’s flagged on the first call.

Tell the specialist early if the property is in someone else’s name, such as a parent or a spouse who isn’t involved in the business. That’s a significant thing to ask of someone, and it’s worth understanding what it means before the conversation goes further.

Ready with the property details? Request your property-secured call-back.

First mortgage, second mortgage or caveat — which fits?

Option	How it works	Often suits
First mortgage	The new loan becomes the main registered loan, often paying out the existing one	Larger amounts, longer terms, refinancing
Second mortgage	The new loan sits behind the existing first mortgage	Using equity without disturbing a good home loan
Caveat loan	A caveat is lodged on the title, typically for a short-term loan	Short deadlines and short terms with a clear exit

The right structure depends on how much you need, how long for, and what’s already on the title. Our caveat loan call prep goes into short-term options in more detail.

How does the lender think about equity?

Broadly: the property’s value minus everything already owed against it, with a buffer. Lenders don’t lend against every dollar of equity, and the buffer varies with the property type, location and loan structure. Commercial and rural properties are usually treated more conservatively than a suburban house.

Rather than chase a percentage online, give the specialist a realistic value and your current balances. They can tell you what’s realistic for your situation, and whether a formal valuation would be needed.

What should I ask before using property as security?

• Is this a first or second mortgage, or a caveat, and why?
• Will there be a valuation? Who arranges it and who pays?
• What does the loan cost in total dollars, including establishment, legal and discharge fees?
• What happens if the exit — a sale or a refinance — takes longer than planned?
• Can I repay early, and are there fees for doing so?
• Is anyone else, such as a co-owner, required to sign or guarantee?

Small business contracts for financial products, including business loans, are covered by unfair contract term protections, which ASIC administers. Reading the terms properly still matters. Our pages on personal guarantees and security and exit and early repayment go further.

What slows property-secured loans down?

Mostly paperwork and people rather than the lender’s decision. The usual suspects are co-owners who aren’t available to sign, trust deeds that can’t be found, existing lenders slow to confirm balances, and valuations on unusual properties. If any of these apply, mention them on the first call so the specialist can plan around them.

Ready to talk about using your property?

Property-secured lending opens up larger amounts and more options, and the first call is about making sure the structure suits you. Asking is free of any credit check, your details don’t get passed along to a string of lenders, and a real specialist reads your situation before calling.

Please complete the request carefully — the property’s location, what’s owed on it, the amount and your state are what we use to match you properly first time. Pick your window and we’ll ring you.