Quick answer
A caveat loan is a short-term business loan secured by lodging a caveat on the title of a property you own, often behind an existing mortgage. Because it needs no valuation and the security is quick to put in place, approval within the hour is common and funds within 24 hours is possible. Loans run from $20k to $5m.
Key points
- $20k to $5m against residential or commercial property
- No valuation needed, which removes a major delay
- Interest can be prepaid or added, so no repayments during the term
- A caveat can later be converted to a registered second mortgage
When a business needs a larger sum quickly and the owner has equity in property, a caveat loan is often the fastest lane available. It does not replace your existing mortgage, it does not wait on a valuation, and the security can be put in place far faster than a full mortgage registration. That combination is why caveat loans are the go-to for deadlines measured in hours.
How a caveat loan works
You own a property, either personally or through a company or trust, with equity in it. The lender advances the loan and lodges a caveat on the title. The caveat signals the lender’s interest and prevents the property from being sold or refinanced without the lender being dealt with first. When the loan is repaid, the caveat is withdrawn.
Loans range from $20k to $5m, against residential or commercial property. Because a caveat loan usually sits behind the existing home loan or commercial mortgage, the amount depends on the equity left once that first mortgage is accounted for. The equity release calculator gives a rough idea using your own estimate of the property’s worth.
Why it can be so fast
- No valuation needed. In traditional property lending, waiting for a valuer is often the longest step. Our caveat loans skip it.
- Lighter paperwork. The property carries much of the weight, so you are not asked for years of financial statements.
- Quick security. Lodging a caveat is simpler than preparing and registering a full mortgage.
- Electronic signing. Loan documents are signed online by every owner and guarantor.
Put together, approval within the hour is common and funds within 24 hours is possible once every owner has signed.
Want to know where you stand today? See if you qualify, with no credit check to enquire.
No repayments during the term, if you prefer
Interest on a caveat loan can be prepaid or added to the loan. That means nothing comes out of your account each month, which is exactly what most businesses in a crunch need. The full balance is repaid at the end, from the sale of an asset, a refinance, a large receivable or the business’s own cash flow. Terms are flexible and you can keep the loan as long as you need it, but go in with a clear exit plan.
Caveat or second mortgage?
| Caveat loan | Registered second mortgage | |
|---|---|---|
| Speed to set up | Fastest | Fast, slightly more paperwork |
| Typical term | Shorter, flexible | Can suit longer periods |
| Security | Caveat on title | Registered mortgage on title |
| Can convert? | Can be converted to a registered second mortgage later | Already registered |
Many owners start with a caveat for speed and convert to a second mortgage if they decide to keep the funding longer.
Common uses
Caveat loans are used to pay an ATO debt before enforcement action, settle a property purchase when other finance is late, fund a deposit at auction, pay out an expensive lender, buy stock at a discount, or cover a large one-off bill while waiting for a sale to settle. The common thread is a large amount, a short timeframe and a clear way to repay.
What lenders will ask for
Gather these now, ideally into one folder on your phone:
- Property address and a recent council rates notice
- Names of every registered owner, since all of them must sign
- Details and current balance of any existing mortgage
- Photo ID for owners and guarantors
- A short description of the purpose and the exit plan
Common delays and how to avoid them
If funding is slower than expected, it is usually because of:
- A co-owner who is overseas or reluctant to sign
- Title held in a trust whose deed cannot be found
- An existing mortgage that prohibits further charges and needs a conversation with that lender
- No clear way to repay at the end of the term
One request before you enquire
The enquiry form asks for the amount, purpose, time trading, monthly revenue, credit history, state and whether you own property. Each answer points your enquiry towards the right lane. When the answers are accurate, the first call can go straight to approval. When they are rounded up, guessed or left vague, the assessor has to unpick them, and that is where hours turn into days. If you are unsure of a figure, give your best honest estimate and say so.
The short version
- $20k to $5m against residential or commercial property
- No valuation needed, which removes a major delay
- Interest can be prepaid or added, so no repayments during the term
- A caveat can later be converted to a registered second mortgage
What happens after you enquire
We have built the process around deadlines because that is when most owners come to us. The enquiry asks only what matters, a person rather than a queue reviews it, and the evidence is gathered in one go. Property-secured loans are assessed without a valuation. Interest on those loans can even be prepaid or added, so there may be nothing to repay during the term. Put together, approval within the hour is common and funds can arrive in as little as 24 hours.
Let’s get it moving
The quickest way to find out is to ask. It is a 60-second form with no credit check attached, your details stay with us, and someone real gets back to you. Please take care with the amount, revenue and property questions, because accurate answers are what make fast funding possible. Check your options.
Frequently asked questions
What is a caveat on a property?
A caveat is a notice lodged on the property title that tells anyone dealing with the property that another party claims an interest in it. In a caveat loan, that interest supports the loan.
Can I get a caveat loan if I already have a mortgage?
Usually, yes. Caveat loans commonly sit behind an existing first mortgage. The available amount depends on the equity remaining after that mortgage.
Do I have to make repayments on a caveat loan?
Not necessarily. Interest can be prepaid or added to the loan, so there may be no repayments during the term. The full amount is repaid at the end, usually from a sale, refinance or business cash flow.
How long can I keep a caveat loan?
Terms are flexible. You can keep the loan as long as you need it, which helps if a sale or refinance takes longer than planned. A caveat can also be converted to a registered second mortgage.
Start the clock right here
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