Why banks won't fund these deals
Banks rarely offer mezzanine finance because it sits behind their own mortgages. If they're not the first mortgagee, assessment is complex. Mezzanine also has shorter terms (1–3 years) than banks prefer.
How specialist lenders look at this differently
Specialist lenders assess deals using a different framework:
- Second mortgages are faster to arrange. No need to refinance. Settlement in 10–14 days.
- You keep your first mortgage terms intact. If you have a great rate, you don't lose it.
- Mezzanine terms are flexible and short. 1–3 years, matching your deal timeline.
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Tell us about your situation and we'll show you what lenders can offer.
Describe Your SituationWhat a typical deal looks like
Illustrative example — not a real caseA developer owns property worth $3.2M with a $1.8M bank mortgage. They want to buy another site for $1.5M but the bank won't lend more. They have $400K equity in the existing building.
A mezzanine lender approves a $500K loan at 9.5% p.a. for 36 months, registered behind the bank. Settlement in 14 days. The developer now has funds for the new purchase and can refinance both properties once development is complete.
What lenders want to see
For deals like these, lenders focus on:
- First mortgage details — lender, amount, rate, term remaining.
- Property valuation — current market value.
- Your equity position — first mortgage balance vs property value.
- Use of funds — what you'll do with the mezzanine money.
- Exit strategy — how you'll repay (refinance, sale, development completion).
- First lender confirmation — that they approve a second mortgage.
When this might not work
Specialist lending has limits:
- Minimal equity — if equity is less than the mezzanine amount, risk is too high.
- First mortgage close to maturity — lenders want stable mortgages with time remaining.
- Property declining in value — equity position deteriorates if market softens.
- Development plan vague — mezzanine lenders want clear repayment paths.
- First mortgage has restrictive clauses — unusual restrictions may block second mortgages.
Our panel includes specialist lenders who actively fund deals like this.
- $100K–$30M
- From 7% p.a. onwards
- 1–24 months typical
- Second mortgage on real property
- Development top-up, equity gap, portfolio expansion
- 10–14 days
- Yes — mezzanine sits behind it
- Yes — no penalties
Describe your situation and we'll match you with the best options.
Common mezzanine finance situations
Below are the most common situations we see. Click on any one to read the detailed guide:
How to get funding — Step by step
The process is straightforward:
- Step 1: Describe your deal. Tell us the property type, location, value, and what you need the funds for.
- Step 2: Get matched. Our AI matches your situation against specialist lenders on our panel.
- Step 3: Move forward. Contact your matched lenders directly. Settlement can happen within days.