Mr's quick answer
In both countries, property-secured business loans from $20,000 to $5,000,000 can use residential or commercial property as security through a first mortgage, a second mortgage or caveat-style security. The main differences are administrative: Australia's land titles are run by each state and territory, while New Zealand has one national system run by LINZ. Lenders on each side generally want security located in their own country.
Key points
- Same toolkit in both countries: first mortgages, second mortgages and caveat-style security.
- Australia: land registration is state and territory based; New Zealand: one national register under LINZ.
- A caveat is a notice on the title claiming an interest, which stops dealings going through quietly.
- Property-secured options run from $20,000 to $5,000,000, residential or commercial.
- Security is usually taken in the country where the lender operates, so the property's location shapes where you apply.
- Amounts
- $20,000 to $5,000,000
- Security types
- First mortgage, second mortgage, caveat
- AU land registry
- Each state and territory
- NZ land registry
- LINZ (national)
Property is the great equaliser in business lending. A strong property position can open doors that a young business, a lumpy income or a past credit stumble might otherwise close. The good news for trans-Tasman owners is that the tools work the same way in both countries. The differences are in who keeps the records and which side of the water the property sits on.
How does property security compare across the Tasman?
| Australia | New Zealand | |
|---|---|---|
| Title system | Torrens title, run by each state and territory | Torrens-style title under the Land Transfer Act 2017, run nationally by LINZ |
| First mortgage | Yes | Yes |
| Second mortgage | Yes, ranking behind the first lender | Yes, ranking behind the first lender |
| Caveats | Lodged with the state or territory land registry | Lodged with LINZ |
| Transfer duty when buying | Charged by states and territories | No stamp duty since 1999 |
| Property-secured business loan range | Between $20,000 and $5,000,000 | Between $20,000 and $5,000,000 |
What are the three ways to use property as security?
1. A first mortgage. The lender holds the first-ranking registered mortgage on the property. If the property is already mortgage-free, or you’re refinancing the existing home loan as part of the deal, this is the cleanest arrangement and usually allows the largest loan against the equity.
2. A second mortgage. Your home loan stays exactly where it is and a business lender registers a mortgage that ranks second. It’s popular with owners who have built up equity and would rather leave a good home loan alone. The second lender looks hard at how much equity sits behind the first mortgage.
3. Caveat-style security. A caveat is a notice on the title. In New Zealand, LINZ explains that a caveat against dealings, lodged under the Land Transfer Act 2017, records someone’s claim to an interest in the land. Victoria’s land registry describes something similar: a person with a legal interest in the property can lodge one, and it flags that interest on the title. Practically, the property can’t quietly be sold or borrowed against again without the caveat holder hearing about it, and it’s often used for shorter-term business funding where speed and simplicity matter.
Who keeps the title records?
This is the biggest administrative difference.
- Australia has eight separate land registries, one for each state and territory. A Sydney property is dealt with under New South Wales arrangements, a Perth property under Western Australian ones, and so on. The principles are shared, but forms, fees and timing vary.
- New Zealand has one national register run by Land Information New Zealand (LINZ). An Auckland title and an Invercargill title sit in the same system.
For a business owner this mostly shows up as paperwork and timing that your lender and their lawyers handle. It does mean a lender needs to be set up to work with the registry where your property sits.
Got equity in property and a business that needs funding? Property-secured options, between $20,000 and $5,000,000, are considered case by case on each side. Choose the country your property is in and start your enquiry.
Can property in one country secure a business in the other?
This is the trans-Tasman question Mr gets most often, and the honest answer is: start where the property is.
Lenders generally take security in the country they operate in, because that’s where they can register their interest and, if things go wrong, enforce it. A New Zealand home is registered with LINZ under New Zealand law; an Australian lender would usually need to deal with that system, and most prefer not to. So:
- Own property in New Zealand, business trading in Australia? Start the conversation on the New Zealand side and explain the business.
- Own property in Australia, business trading in New Zealand? Start on the Australian side.
- Property and business in the same country? Simple: start there.
Our where should a trans-Tasman business apply page walks through more combinations.
What will a lender check on the property?
On both sides, expect questions about:
- Value. Usually an independent valuation, and sometimes an automated estimate for smaller amounts.
- What’s already owed. Existing mortgages, caveats and any other interests on the title.
- Ownership. Whose name is on the title? A family trust, a company, a spouse or a co-owner all change who has to sign.
- Property type and location. A suburban house, a rural block and a city office each sell differently, and lenders price in how easily they could be sold.
- Exit plan. The repayment route: trading income, from refinancing or from selling something.
The single-country sites go deeper: the Australian site explains second mortgages for business and the New Zealand site explains what a lender checks on your property.
Illustrative example
Illustrative only. A builder lives in Tauranga and owns a rental in Brisbane. His company trades in New Zealand and needs funds for materials on a large job. Because the rental is in Queensland, he’s asked to start the property-secured conversation on the Australian side, explaining that the borrowing entity and its work are in New Zealand. If that combination doesn’t suit, he still has the option of an unsecured cash-flow facility in New Zealand, usually somewhere between $5,000 and $500,000, sized on his company’s turnover and bank statements.
Ready to put your property to work?
Property is often the difference between “not yet” and “let’s do it”, on either side of the Tasman. When you’re ready to use yours, Mr’s people make the first step low-stakes: enquiring doesn’t involve a credit check, your details aren’t hawked around the lending market, and someone who knows local property security reads it. Be precise about where the property is, whose name is on the title and what’s owed, and the answer will fit. Choose the country your property is in.
Frequently asked questions
Can I use my house in New Zealand to secure a loan for my Australian business?
It's worth asking, but expect the question to be handled on the New Zealand side. Lenders generally take security in the country they operate in, because that's where they can register their interest and enforce it. Start your enquiry in the country where the property is, and explain where the business trades.
What's the difference between a second mortgage and a caveat?
A second mortgage is a registered mortgage that ranks behind the first lender, usually with the first lender's knowledge. A caveat is a notice lodged on the title claiming an interest in the land, which warns others and stops dealings being registered without the caveator being alerted. Caveat-style security is often used for shorter-term business funding.
Does New Zealand have stamp duty on property?
No. New Zealand abolished stamp duty on property transfers in 1999, while Australian states and territories still charge transfer duty when property changes hands. That matters if you're buying property, not when you're using property you already own as security.
Can commercial property be used as security as well as a home?
Yes, in both countries. Residential and commercial property can both support a business loan. Lenders look at the property type, location, value, existing mortgages and how easily it could be sold, and that shapes how much they'll lend against it.
Will the lender need a valuation?
Usually. A lender wants an independent view of what the property is worth today and what's already owed against it. The difference is your usable equity, and that drives how much a property-secured loan can be.