04 Sep 2022

Warehouse & Wholesale Funding – Junior Note Holder

Low Doc Loan Borrowing Limits

Junior notes are loans stationed at a lower importance than most other debts and tend to be riskier to lenders than senior notes. Junior notes are considered subordinated debt and must be immediately repaid following the senior notes. Junior notes are issued for longer periods than senior debt is, and after five years, the option to repay junior note investors becomes available.

Junior bonds are considered subordinated bonds and are not backed by collateral or any additional security. Mortgage House lending specialists can help to point you in the right direction when it comes to junior and senior bonds. 

Senior notes are stationed at a higher importance and are considered more secure than junior notes are. Senior notes can take up to ten years to mature and are considered unsecured debt that is not backed by collateral. Senior debt is the entirety of a company’s debt with priority debt and will generally refer to a secured debt type that is backed by collateral, and is often confused with senior notes. 

Keep in mind that junior notes are subordinate to senior notes and are also regarded as riskier than senior notes. Contact Mortgage House today to speak to a lending specialist about business and commercial loans, and learn more about warehouse and wholesale funding for businesses. 

You can access our free Best Rate Mortgage Calculator resource for assistance with specialized financial and mortgage planning.


In conclusion, junior notes are held at a lower priority than senior notes, considered to be more of a risk, issued for longer periods than senior notes, and are not backed by collateral or additional security.

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