Emergency private mortgage: fast secured funds when a creditor won't wait

An urgent loan chases an opportunity. An emergency loan stops damage. The difference matters, because in an emergency someone else is holding the clock — a tax office, a landlord, a supplier or another lender — and the plan has to work for them as well as for you.

When does a business need an emergency private mortgage?

These are the situations that most often bring owners to the desk with a short fuse:

• An ATO garnishee notice. The ATO can direct banks, trade debtors, merchant card providers and even “solicitors, real estate agents or purchasers involved in the sale of property you own” to pay it instead of you. Cash flow can freeze overnight.
• A director penalty notice. Company directors can become personally liable for unpaid PAYG withholding, GST and super guarantee charge. The notice gives 21 days to act.
• Another lender calling in a facility. A bank reducing an overdraft or a private loan reaching expiry with no refinance in place.
• A supplier or landlord demand. Stock withheld, a lease breach notice, or a creditor threatening legal action.
• A settlement about to fall over. Covered separately on our settlement shortfall page.

In each case a property-secured loan can pay the creditor in full and turn a crisis into a single, scheduled debt with a known end date.

Which structure works in an emergency?

The structure is decided by the property, not by how stressful the week has been.

Situation on title	Structure	Notes
Victorian property, existing bank mortgage	Caveat loan	Often the fastest route where there’s equity behind the first lender
Property in any other state, existing mortgage	Registered second mortgage	The same short-term role as a caveat, usually just as quick
Property owned outright	First mortgage	The simplest security; can also refinance a loan that’s being called in
Several properties, each with modest equity	Loan secured over more than one title	More paperwork, but can unlock enough to clear the debt

Loans range from $20,000 to $5,000,000 for business purposes. On the timing side, a secured amount of $20k to $250k can sometimes land the day you apply, and bigger loans — as high as $5m — can be possible inside 24 to 48 hours. Both depend on a clean title, a quick valuation and every owner being reachable.

Emergencies also tend to come with partial information. That’s fine. The desk can start shaping a structure with an estimated property value and a rough loan balance, then firm up the numbers as the valuation and payout letter arrive. What we can’t work around is a property owner who isn’t aware the loan is happening, so bring any co-owner, trustee or fellow director into the conversation on day one.

What should I do in the first 24 hours?

The owners who come through an emergency in the best shape tend to do the same things early.

1. Read the notice properly. Note the amount, the deadline and who issued it.
2. Call the creditor. business.gov.au recommends explaining your circumstances and asking about hardship provisions or extensions. Saying “finance is being arranged against property” with a timeframe is far stronger than silence.
3. Get your property numbers. An estimated value and the payout figure for any existing loan.
4. Write down the exit. How this loan will be repaid: a sale, a refinance, collections or a contract payment.
5. Make one enquiry, not ten. A pile of applications in a week doesn’t speed anything up and leaves a trail of credit enquiries.

When you’ve got those five things, tell the desk what’s happening and someone will call to map out the fastest workable route.

Can I get one with bad credit or existing arrears?

Usually the answer depends on the property and the exit more than the credit file. Private lenders consider past credit issues and ATO debt case by case. Arrears on an existing mortgage, a default listing or a recent court judgment all need to be disclosed, but none is automatically fatal when there’s solid equity and a believable plan. Our page on bad credit caveat loans goes deeper on how lenders read a damaged file.

What does an emergency mortgage look like in practice?

A made-up scenario using round figures, to show the mechanics.

A Geelong transport company receives an ATO garnishee notice on its business account over a $95,000 debt. Wages are due in four days. The director owns a Geelong home worth around $900k with $420k owing, an LVR of about 47%.

On the first call we confirm the property is in Victoria, so we write a caveat loan of $105,000 to cover the debt and loan costs. The director tells the ATO that funds are coming and asks about varying the notice once the debt is paid. Funds settle within the week and go straight to the ATO. The exit is a refinance of the company’s truck fleet, which a lender has already started assessing, expected in roughly three months.

When is an emergency mortgage the wrong answer?

Honesty matters here. A short-term loan is measured in months, not decades, and it suits a timing problem — money that’s coming but not here yet. It isn’t a fix for a business losing money every month. If you can’t name where the repayment will come from, talk to your accountant or the Small Business Debt Helpline on 1800 413 828 before you borrow. We’d rather you made that call than took a loan you can’t exit.

In a bind right now? Find out if you qualify

We hear from owners in tight corners every week, and the sooner we know, the more options there are. Filling in the short form is roughly a minute’s work, and nothing touches your credit file at that stage — no credit check when you first enquire. We don’t circulate your details to a list of lenders, so you won’t be fielding calls from strangers while you’re trying to fix things. Instead, one experienced person on our desk — you’re dealing with the lender, not a go-between — works through your circumstances and phones you directly.

Please be accurate on the form, particularly the property address and state, the amount owing and the creditor’s deadline. It’s how we get the structure right on the first call.

Get emergency help started →