How a Second Mortgage equity release can help you
Leverage equity for a deposit on your next deal
Ideal for investors seeking to fund the deposit on their next rental property, or for traders looking to access cash deposits for their next trade.
BRRR: Buy, Renovate, Refinance
Purchased a property below value and need cash to renovate? Use your new purchase or an existing property to finance renovations, then refinance back to the bank.
Need cash to renovate and sell?
If your bank won't increase your mortgage for renovations, keep your current low rate mortgage with them and Flexy can give you the cash you need.
Fund GST shortfalls on contemporaneous sales
Are you trading property contemporaneously? Use untapped equity in your existing property to finance any GST shortfall when selling zero rated.
Unlock equity in an existing property to purchase or renovate
Finbase
$560K
70%
First mortgage
Equity
$140K
17.5%
Your equity
Flexy
$100K
12.5%
Second mortgage
Purchase price
$800,000
Purchase price
$800,000
Finbase
$560K
70%
Flexy
$100K
12.5%
Cash
$140K
17.5%
First mortgage
Second mortgage
Your cash
Example:
Use up to 80% LVR in an existing property
You own an $800,000 rental property. Below is a loan structure using the Flexy Equity Release Facility and keeping the first mortgage lender. Flexy advanced $100,000 ( 12.5% of the property value) which can be used as cash towards another purchase, or to renovate property.
01
Get started
Send your property address and all current first mortgage debt amounts.
02
Quick response
Flexy will review, and if approved, respond swiftly with a Loan Offer.
We aim to approve loans on the same day.
03
Funds advanced
If purchasing another property, Flexy provides funds to your solicitor for a deposit top-up, or directly to your bank account for renovations.
03
Refinance or sell to pay
Complete your renovation and refinance, or sell the property.
Use the proceeds to repay the Flexy loan, completing the process seamlessly.
How Flexy works
Eligibility criteria
If you are GST registered for your purchase, please use the GST Facility here.
Have questions or want to get started?
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Funds must be borrowed for investment-related purposes only.
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Borrowers can not be a GST registered entity.
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Security over the project, or suitable property required.
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Borrowers must demonstrate an acceptable exit strategy to repay the loan.
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Borrowers must not have any overdue IRD accounts.
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The borrower must ensure the refinance or resale cover the Flexy loan repayment on the due date.
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Full terms and conditions are provided with the loan offer.
Eligibility criteria
If you are GST registered for your purchase, please use the GST Facility here.
-
Funds must be borrowed for investment-related purposes only.
-
Borrowers can not be a GST registered entity.
-
Security over the project, or suitable property required.
-
Borrowers must demonstrate an acceptable exit strategy to repay the loan.
-
Borrowers must not have any overdue IRD accounts.
-
The borrower must ensure the refinance or resale cover the Flexy loan repayment on the due date.
-
Full terms and conditions are provided with the loan offer.
There is an establishment fee, legal costs for security registration and AML which are all capitalised into the loan, including the first month’s interest payment. Full costs will be provided on application.
The interest rate depends on your individual circumstances. The property location, LVR, and other risk factors will determine the rate. As Flexy is a second ranking lender, our rates are higher than first mortgage interest rates.
Most loans are 3-6 months. The minimum loan term is one month.
Flexy considers individual circumstances and may work with borrowers to renew the loan.
Security is in the form of a mortgage, no greater than second ranking.
The Equity Release Facility is for residential property only.
We need the sale and purchase agreement if using a new purchase, or an address of your existing property. We’ll also need to know how you plan to use the funds.