Loan Type: Second Mortgage Loan
Loan Amount: $800,000
Location: Pyrmont, NSW
Purpose: Urgent tax debt settlement to prevent refinance collapse
Solution: Fast-settled second mortgage across multiple properties
When the ATO is pressing and a refinance is hanging in the balance, there’s no time to wait for banks. That’s the exact situation one of our clients in Pyrmont faced. They had a strong property portfolio and a refinancing deal ready to go. But an $800,000 tax debt threatened to derail everything.
It wasn’t about financial strength; they had the equity and the business case. The issue was timing. Unless the tax debt was cleared quickly, the refinance would collapse. That meant higher costs, lost opportunities, and even the risk of selling assets under pressure.
At Bridging Loans, we stepped in with speed and certainty. We provided an $800,000 second mortgage loan, secured against multiple Pyrmont commercial properties. The loan was structured and settled fast, giving the client immediate funds to clear their ATO debt.
This cleared the way for their refinance to proceed smoothly, securing better long-term terms and protecting their portfolio strategy.
A second mortgage is a loan secured against property that already has an existing mortgage. It sits behind the first mortgage, which means it carries more risk for the lender and usually comes with higher rates. But for business owners with strong equity and urgent funding needs, it can be one of the fastest ways to raise capital.
Second mortgages are particularly valuable when banks won’t move quickly or decline finance due to tax arrears, complex income, or non-standard paperwork.
In this case, the first mortgage remained untouched. Our second mortgage gave the client the capital they needed, right when it mattered most.
ATO tax debts can escalate fast. Once flagged, the ATO can:
• Issue garnishee notices on income
• Register caveats on properties
• Freeze business bank accounts
• Block refinance approvals
Many business owners only realise the impact of tax arrears when a refinance is suddenly rejected. For this client, an $800k tax debt almost derailed their refinancing strategy. By settling it with a second mortgage, they avoided steep penalties, delays, and the risk of default.
Within a week, the debt was cleared, and the refinance went ahead as planned.
Second mortgage loans aren’t always the right fit, but they can be a smart solution in situations such as:
• Urgent ATO tax debt settlements
• Bridging finance between property transactions
• Short-term cash flow for expansion or restructuring
• Paying creditors to avoid liquidation
• Meeting settlement deadlines on urgent deals
The key advantage is speed. Because these loans are asset-backed, they can often be settled within days, a vital difference when time is critical.
This wasn’t just a loan. It was the turning point for a broader financial strategy. The client’s refinance would streamline their portfolio and reduce costs significantly, but it couldn’t happen until the tax debt was gone. Our second mortgage acted as the bridge to get them there.
At Bridging Loans, we specialise in short-term funding solutions designed to move quickly when the banks won’t.
If you’re facing tax arrears, a stalled refinance, or a funding deadline the banks won’t support, our team is ready to help.