Caveat loans, funded in 24 hours

At a glance

How caveat loans work

A caveat is a notice on the land title recording that a lender has an interest in the property. In Victoria we lodge one so the loan can fund the same day, then register the second mortgage behind it. In every other state the loan settles directly as a registered second mortgage.

That makes caveat loans the go-to for time-critical needs: an ATO garnishee, a settlement shortfall, a supplier who wants payment today or a purchase opportunity that won't wait.

Who it suits

• Urgent needs where a mortgage would take too long
• Owners with an existing home loan who don't want to refinance it
• Short-term needs with a clear exit, such as a sale, refinance or payout
• Borrowers with bad credit or ATO debt

How it works

1. Check eligibility60 seconds online, with no credit score impact.
2. Talk to a specialistWe confirm the amount, property and exit plan the same day.
3. Get a written offerEvery cost set out clearly, often with just a desktop valuation.
4. Sign and settleE-sign, we lodge the security, and funds land in as little as 24 hours.

What you'll need

• Photo ID for each borrower and guarantor
• Property address and who owns it
• What's owing on the property (if anything)
• The loan purpose and your exit plan

What a caveat actually is

A caveat is a formal notice lodged with the land titles office in your state. It records that someone other than the registered owner has an interest in the property. While it sits on the title, the property cannot be sold, transferred or refinanced without the caveat being dealt with first.

That is the whole mechanism. The lender is putting the world on notice that it has a claim, and that claim has to be dealt with before the property moves. It is a fast first step, not a different kind of loan — the loan itself is a second mortgage loan, and the mortgage is registered behind the caveat.

The practical consequence is speed. Registering a second mortgage takes longer than lodging a caveat, so in Victoria the caveat is what gets the money moving on the day, while the registered mortgage follows in the background. In every other state and territory the second mortgage can be registered directly without holding settlement up, so there is no separate caveat stage to pay for or wait on.

A caveat sits behind whatever is already registered on the title. If you have a home loan with a bank, that bank stays first in line. The caveat lender is taking the risk of being behind them, which is why equity matters so much and why caveat loans are priced for short terms rather than years.

The caveat loan process, hour by hour

Caveat loans move faster than any other property-secured lending in Australia, but only when the paperwork is ready. Here is what actually happens between your first enquiry and money in the account.

1. Eligibility check — 60 secondsYou tell us the amount, the property and roughly what equity sits behind the existing mortgage. No credit enquiry, no cost, no obligation.
2. Assessment — same morningWe confirm ownership from the title, form a view on value, and look at your exit plan. This is where a desktop valuation saves days over a physical inspection.
3. Offer — within hoursYou get the amount, the term, every cost and the conditions in writing. Nothing is buried and nothing appears later.
4. Signing — the same dayDocuments are signed electronically. If the property is in a company or trust name, the right signatories have to be available, which is the single most common cause of delay.
5. Settlement on the title — same dayIn Victoria we lodge a caveat with Land Use Victoria so the loan can fund, and register the second mortgage behind it. Everywhere else the loan settles directly as a registered second mortgage. Either way lodgement is electronic and takes minutes.
6. Funds released — as little as 24 hours from enquiryMoney goes to your nominated account. For straightforward deals lodged early in the day, same-day funding is achievable.

What a caveat loan costs

Caveat loans are priced per file, not from a rate card. Four things do most of the work: the equity behind your existing mortgage, the term and how strong the exit is, the property type and location, and how clean the file is.

We do not publish a headline rate, because a ‘from’ rate quoted before anyone has seen your situation is a marketing number rather than your number. You get the real figure, with every cost itemised, in writing, before you commit to anything.

Caveat loan costs explained → covers what drives the price on your file, the full list of costs to demand in writing from any lender, and how to compare two offers properly.

A caveat loan is a second mortgage loan

This is the part almost every website gets wrong, including ours until now. A caveat loan is not an alternative to a second mortgage. Under the loan contracts it is a second mortgage loan. The caveat is simply how the loan settles quickly.

The distinction that actually matters is how your state handles settlement, and it changes both the speed and what you pay in legal costs.

So if you are outside Victoria and searching for a caveat loan, the good news is that you will usually get the same speed on a simpler and cheaper structure. If you are in Victoria, the caveat is what gets the money to you inside a day.

Who caveat loans suit — and who they don’t

A caveat loan is a precise tool. Used for the right job it is the fastest funding available against property in Australia. Used for the wrong one it is expensive.

It suits you when there is real equity in a property you own, a genuine deadline, and a clear way out — a settlement, a refinance, a contracted payment, a sale. The exit is the part that matters most, and it is the first thing any experienced lender will ask about.

It does not suit you if you are looking for working capital over two or three years, if there is little equity behind the existing mortgage, or if the exit is a hope rather than a plan. In those situations a cash-flow loan against your bank statements, or a longer-term facility, will cost you far less. If that is your situation we will say so.

Caveat loans in detail

Everything below is a full page on one part of caveat lending, written for people who want the detail before they pick up the phone.

Frequently asked questions