Tools
Second mortgage calculator
See how a second mortgage sits behind your existing loan: the combined loan-to-value ratio, the equity left, the interest over the term and the cash you would receive after fees.
Estimate only. Not a quote, offer or advice.
Enter the property value, first mortgage balance, second loan amount, rate and term.
Assumptions
- Interest is simple interest paid monthly on the second mortgage only.
- The value you enter is used as-is; the lender relies on its own valuation.
- Privet does not supply rates or fees: use the figures in an offer you have received.
How this is calculated
- Combined LVR = (first mortgage balance + second mortgage) ÷ property value × 100.
- Interest = loan × annual rate × months ÷ 12.
- Cash received = loan − fees.
What this means
This is a starting estimate from the figures you entered. A lender will run its own assessment, with its own rates, fees and buffers, so the real numbers can differ. Use it to test scenarios and to know which questions to ask.
Next steps
Ready to test your scenario with a lender?
- Free, and no credit check to enquire
- One short form, shared only with your consent
- Private and non-bank providers review your scenario
Free. No obligation. Not an application for credit.
Worked example
A property worth $1,000,000 with a $500,000 first mortgage, and a $200,000 second mortgage at 12% a year for 12 months with a 2% fee.
- Combined LVR: ($500,000 + $200,000) ÷ $1,000,000 = 70%.
- Equity left: $1,000,000 − $700,000 = $300,000.
- Interest: $200,000 × 12% = $24,000. Fee: $4,000. Cash received: $196,000.
Combined LVR of 70%, $300,000 equity left and $196,000 in hand after fees.
Figures are illustrative inputs, not Privet rates or offers.
Take your scenario to a lender →Frequently asked questions
Why does combined LVR matter?
A second lender ranks behind the first, so it looks at total debt against value. A higher combined LVR means less buffer if the property sells for less than expected.
Does the first lender need to agree?
Often yes. Many first mortgages require consent before another mortgage is registered, so check your existing loan terms.
Is this result financial advice?
No. The calculator only applies arithmetic to the figures you enter. It does not know your circumstances, so check results with a licensed adviser, lawyer or accountant before you sign anything.
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