With Mango Credit and Mango Mortgages, Short-Term Funding Has Never Been Easier
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With funding solutions that are customized to your unique needs and priorities, you can tackle your financial goals head-on. We offer bridging loans for personal use and business short-term loans for investment or commercial purposes. Reach out today, and we’ll find a solution that fits your needs perfectly.
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Short-Term Loans Explained: The Different Options
If you’re curious about how these loans actually work, continue reading.
The first thing you need to know about financing solutions offered by Mango Credit and Mango Mortgages is the fact that they’re secured by a caveat. This is another word for an unregistered second mortgage that is “added” to your existing bank mortgage.
Here’s a quick rundown of the different types of loans we offer:
Caveat loans
Also known as “equitable mortgages” or “unregistered second mortgages,” caveat loans offer you quick, reliable funding as long as you can secure the loan with existing property. Unlike other types of loans, you don’t need consent from your bank to lodge a caveat loan behind an existing mortgage. Most people get caveat loans in order to do things like pay for renovations or accumulate capital for their business. Caveat loans may also be a viable solution for those who don’t have great credit history.
Key Takeaways:
- Caveat loans allow you to take advantage of investment opportunities that are time sensitive. Funding occurs within just a few days.
- The caveat is released as soon as you refinance, pay back the loan, or sell your property
- Investors get caveat loans because of opportunity cost (the loss of losing an investment vs. the cost of the loan itself).
Second mortgages
When you get a second mortgage, you’re using the equity in your real estate as security for a second loan. After you get a second mortgage, you’ll have two separate loans that are attached to your property. Mango Credit and Mango Mortgages provide second mortgages for Australians who wish to quickly get a short-term business loan or a personal bridging loan. Unlike a caveat loan, you must get consent from your bank before being approved for a second mortgage. This means that these loans may take slightly longer to secure.
Key Takeaways:
- Second mortgages are generally cheaper than caveat loans
- These loans also offer higher LVR (loan to value ratio) compared to a caveat loan
- While second mortgages aren’t as fast as caveat loans, they still allow for the quick release of funds – either for your business or for personal expenses
- Second mortgages allow you to seize on investment opportunities that may not be around for long
- Again, opportunity cost is important when considering a second mortgage. How much could you lose if you let this investment opportunity slip away?
First mortgages
A first mortgage is the first loan you would obtain in order to purchase real estate. If you sell your property without fully paying off your mortgage, your first priority is to settle the amount before moving on (as well as paying land tax and other exemptions). Mango Mortgages and Mango Credit offer first registered mortgages to Australians. This may be an especially strong option if you can’t obtain a loan from a “traditional” lender, such as a bank.
Key Takeaways:
- First mortgages are cheaper than both caveat loans and second mortgages
- First mortgages are generally faster to obtain compared to a second mortgage
- A first mortgage offers excellent LVRs (better than both caveats and second mortgages)
- Mango Mortgages allows you to buy a residential or commercial property even if you don’t qualify for a loan with other traditional lenders
- Take out a mortgage on a property you already own, and you can use that cash for personal or business expenses
Home equity loans
“Home equity loan” is a broad term that can refer to a number of financial products that require a homeowner to use their residence as security. Usually, the homeowner puts down their principal place of residence as security when applying for a loan. If you use another type of real estate for security (such as a summer cottage), the loan is referred to simply as an “Equity Loan.”
- Home equity loans allow you receive cash quickly for a range of expenses
- These expenses might include renovations, investments, business capital, and so on
- You can also use these funds to get out of debt quickly, which can be very useful if you find yourself in a bind.
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