Private lending › Caveat loans
Caveat loans
in Australia.
The fastest funding structure available against property. A caveat is lodged over the title instead of registering a mortgage, which removes days from the settlement process.
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Same day, in writing. No credit check to enquire.
The basics
What is a caveat loan?
A caveat loan is a short-term loan where the lender protects its position by lodging a caveat on the property's title rather than registering a mortgage. The caveat is a formal notice that the lender has an interest in the property, and it prevents any dealing with the title until the loan is dealt with.
The reason this matters is speed. Registering a mortgage is a slower process involving the incumbent lender's consent, formal documentation and land registry steps. A caveat can be lodged quickly, which is why a caveat loan can settle in days rather than weeks.
The trade-off is that a caveat is a weaker security position than a registered mortgage. It puts the world on notice but does not give the lender the same enforcement rights. Lenders price for that difference, and terms are generally shorter.
Mechanics
How a caveat loan works
- Equity is assessedThe lender looks at the property value against existing registered debt. What is left is the room a caveat loan can work inside.
- Terms are issuedSame day where we have the security details and a clear exit. Caveat lending moves faster than anything else we place.
- The caveat is lodgedYour solicitor and the lender's prepare and lodge the caveat over the title with the relevant land registry.
- Funds are releasedAs fast as 2 business days from signed terms, which is the whole point of the structure.
Typical structure
The trade-off is that a caveat is a weaker security position than a registered mortgage. It puts the world on notice but does not give the lender the same enforcement rights. Lenders price for that difference, and terms are generally shorter.
When it fits
Why a caveat rather than a mortgage
The deadline is measured in days
Settlement shortfalls, auction obligations, a creditor deadline. If a registered mortgage cannot be done in time, a caveat often can.
The first mortgagee will not consent
A second mortgage needs the existing lender's consent. Where that is refused or simply too slow, a caveat is the practical alternative.
The term is genuinely short
Caveat loans suit weeks-to-months, not years. If the need is longer, a registered second mortgage is usually cheaper.
The exit is already contracted
A settlement, a sale, a refinance with terms already issued. Caveat lenders want to see the repayment event, not a plan to find one.
The honest trade-off
Caveat loans are the most expensive structure we place, because the lender accepts a weaker security position and a compressed timeframe. If your deadline allows for a registered second mortgage, take it. We will tell you when that is the case rather than placing the dearer product.
Terms
Caveat loan parameters
Priced against available equity, the property type and how firm the exit is. Speed is the product, and the pricing reflects the position the lender accepts to deliver it.
| Rates | From 7.99% p.a. |
|---|---|
| Establishment fee | From 0.75% |
| Term | 1 – 12 months typically |
| Loan size | From $200,000 |
| Settlement | As fast as 2 business days |
| Locations | All of Australia |
| Indicative terms | Same day |
FAQ
Frequently asked questions
What is a caveat loan?
A caveat loan is a short-term loan secured by lodging a caveat over a property's title rather than registering a mortgage. The caveat notifies the world that the lender holds an interest in the property and prevents dealings with the title until the loan is resolved. It is used when speed matters more than anything else.
Are caveat loans legal in Australia?
Yes. Lodging a caveat to protect a genuine lending interest is a recognised process under each state and territory's land title legislation. A caveat lodged without a legitimate interest can be removed and may expose the lodging party to costs, which is why the loan documentation matters.
What is a caveat on a loan?
It is the security mechanism. Rather than registering a mortgage on the title, the lender lodges a caveat recording its interest. The practical effect is that the property cannot be sold, refinanced or further encumbered without dealing with the caveat holder first.
How fast can a caveat loan settle?
As fast as 2 business days from signed terms. The speed comes from skipping mortgage registration and, in most cases, the incumbent lender's consent.
How much do caveat loans cost?
More than a registered first or second mortgage, because the lender takes a weaker security position over a shorter timeframe. Rates across our panel start from 7.99% p.a. Judge it on the total dollar cost over the actual term, which is often only weeks.
Do I need my existing lender's permission?
Generally no, which is a large part of why caveat loans are faster than second mortgages. Your existing mortgage documents may still contain obligations regarding further encumbrances, so it is worth reading them.
Can I get a caveat loan with bad credit?
Usually yes. Caveat lending is assessed on the equity in the property and the credibility of the exit rather than credit history. Defaults and tax debt affect pricing and maximum lending rather than eligibility.
Enquire
If the deadline is days, start here.
Tell us the security and the deadline. Indicative terms the same day, settlement from 2 business days.
Prefer to talk it through? Call 0478 715 429.