Who it may help
Possible fit
- Owners with equity in a home, rental or commercial property
- Businesses with short or uneven trading history
- Borrowers who need more than an unsecured lender will offer
Secured business loans NZ
Secured business loans in New Zealand, direct from the lender
A secured business loan is backed by a registered mortgage over property, so the lender can look at the property and your plan to repay, not only your trading history. HomeSec is a direct, privately funded lender of secured business loans from $20,000 to $1,000,000 against suitable residential or commercial property almost anywhere in New Zealand. Our loans are open term, funding may be possible in as little as 24 hours, and approved facilities may offer up to six months with no scheduled payments, subject to assessment.
Appropriate uses
Business needs
- IRD and GST obligations
- Stock, suppliers and creditor payments
- Buying a business or premises
- Equipment, renovations and fit-outs
Consider carefully
Important factors
- The property is at risk if the loan is not repaid
- Title checks, legal work and any bank consent take time
- Get independent legal advice before you sign
What makes a business loan secured
A loan is secured when the lender holds a security interest it can enforce if the loan is not repaid. For land and buildings, that is a mortgage registered on the property's record of title. For vehicles, equipment and other business assets, lenders register their interest on the Personal Property Securities Register (PPSR), and some take a general security over everything the business owns.
HomeSec lends against real estate. Each loan is secured by a registered first or second mortgage over suitable residential or commercial property in New Zealand, owned by the business or by its owners. If your bank already holds the first mortgage, it can stay in place and we take a second mortgage behind it, usually with your bank's consent. We do not offer equipment-only finance or unsecured loans.
Secured or unsecured: what changes
Unsecured business lenders lean on trading history, turnover and credit. They can be quick for smaller amounts, but the amount is usually tied to turnover, repayments usually start straight away on a fixed term, and personal guarantees are common. A secured lender looks first at the property, the purpose and how the loan will be repaid, so a larger amount can be possible for a business with short or uneven trading history.
The trade-off is the property. If a secured loan is not repaid, the lender can enforce its mortgage, which can end in the property being sold. Before that, the lender must give a formal default notice under the Property Law Act 2007 and allow time to fix the default. Compare the total cost in dollars, the fees, the repayment pattern and what happens if you repay early, not only a headline rate, and take independent legal advice before you sign.
Secured business loans across New Zealand
HomeSec is based at 152 Fanshawe Street, Auckland, and lends against suitable property almost anywhere in New Zealand, from Auckland and Tauranga to Wellington and Christchurch. Applications are handled by phone and online, so you do not need a lender nearby.
We lend only for genuine business or commercial purposes. We do not offer secured personal loans, home loans or loans to buy or renovate your own home. For those, a bank or a mortgage adviser is the right place to start.
How the assessment works
Purpose, property and repayment path.
A useful scenario is not only a requested amount. It connects the business need to suitable security and a realistic way for the facility to be repaid or refinanced.
- 1. Explain the opportunity.
Provide the amount, intended use and timing. - 2. Outline the property.
Share ownership, location, estimated value and current lending. - 3. Show the exit.
Describe how and when repayment or refinance is expected. - 4. Review terms and risks.
Understand the documents, total cost, obligations and alternatives before proceeding.
Top tips for a faster, smoother assessment.
The right level of documentation depends on the proposed structure and what the team needs to verify.
Identity, property ownership, existing lending, the source and use of funds, and the proposed exit may all need evidence. Legal work can also apply.
Raise difficult details early. Tax obligations, arrears, a recent credit event or an urgent deadline can be assessed more effectively when they are explained upfront.
Common questions
What business owners usually ask next.
What is a secured business loan?
It is a business loan backed by security the lender can enforce if the loan is not repaid. HomeSec's secured business loans are backed by a registered first or second mortgage over suitable New Zealand property and are used for genuine business purposes, from $20,000 to $1,000,000.
What property can I use as security?
Suitable residential or commercial property in New Zealand, owned by the business or by its owners. That can include your home, a rental property or business premises. The property's value, location, condition, ownership and any existing lending are all assessed.
Can I get a secured loan if my bank already has a mortgage?
Often, yes. Your bank keeps its first mortgage and HomeSec takes a second mortgage behind it. Many first mortgages require the bank's consent before another mortgage is registered, so we check this early.
How much can I borrow?
HomeSec lends $20,000 to $1,000,000 for a business purpose. The amount for your scenario depends on the property's value, what is already owed on it, the business purpose and how the loan will be repaid. No valuations or cashflow records are needed to start an enquiry.
Is a secured loan cheaper than an unsecured loan?
For a larger amount it often is, because the lender's risk is lower, but not always. Compare the total cost in dollars, every fee, the repayment pattern and the cost of repaying early. HomeSec does not publish a standard rate; the interest, fees and conditions that apply to you are set out in writing before you proceed.
How quickly can a secured business loan be arranged?
Funding may be possible in as little as 24 hours, subject to approval, documents, security, legal work and settlement requirements. A first lender's consent or a complex title can add time, so it helps to raise them early.
Do I have to make repayments straight away?
Not always. HomeSec loans are open term, and an approved facility may offer up to six months with no scheduled payments. Interest and other costs still accrue during that time, and the exact payment settings are set out in your loan contract.
What happens if I cannot repay a secured loan?
Talk to the lender as early as possible, because there are often options such as more time or a refinance. If a default is not fixed, the lender can enforce its mortgage, which can end in the property being sold. Before that, it must give a formal notice under the Property Law Act 2007 and allow time to fix the default.
Do you offer secured personal loans?
No. HomeSec lends only for genuine business or commercial purposes, so we do not offer secured personal loans, car loans or home loans. If your purpose is personal, a bank, credit union or mortgage adviser is the right place to start.
Related pathways
Compare the nearby options.
Information is general only and is not an offer or approval of finance. Lending is subject to assessment, acceptable property security, documentation, legal requirements and final approval. Independent legal, financial and tax advice may be appropriate for your circumstances.
Next step
Check a secured business loan scenario
A short scenario conversation can help establish whether property-secured business finance may fit.