Short answer: Caveat loan pricing in Australia is set case by case, driven mainly by the equity behind the existing mortgage, the term, the strength of the exit and the property type. Instant Business Finance does not publish a headline rate, because a rate quoted without those facts is not a real number.
Why don’t we publish a rate card?
Almost every lender that advertises a caveat loan rate advertises the lowest one it has ever written. It reads as ‘from’ a number that almost nobody actually gets, on terms almost nobody actually qualifies for.
We will not do that, for a simple reason: it sets up a conversation that ends in disappointment. A client rings expecting the advertised number, and either the file does not support it or the structure is different, and now a good outcome feels like a bad one. That is a bad experience for the client and an unpleasant job for the person on the phone.
Most business owners have worked this out. A headline rate on a specialist lending page is treated as marketing, not information, and rightly so.
So here is the honest version. Every caveat loan is priced on the individual circumstances of that file, and those circumstances vary enormously. Our rates are built to be the sharpest we can write for your situation — and you will have the actual number, in writing, before you commit to anything.
What actually moves the price on your file
Four things do most of the work. If you want to know roughly where you will land before you pick up the phone, these are what to look at.
- Equity position. The room between what is owed on the property and what it is worth. This is the single biggest factor. More room means less risk and a sharper rate.
- Term and exit strength. A loan repaid from a contracted settlement eight weeks out prices very differently from one with a vague exit twelve months away.
- Property type and location. A house in a capital city is straightforward. Specialised commercial, rural or remote security takes more work and carries more risk.
- How clean the file is. Clear title, available signatories, documents ready. This genuinely affects pricing, not just speed.
The costs to ask about — from us or anyone else
Whoever you borrow from, these line items should all appear in writing, on one page, before you sign. This list is worth keeping if you are comparing offers.
| Cost | What it covers | What to check |
|---|---|---|
| Interest | The cost of the money, usually quoted monthly on short-term facilities | Whether it is charged on the full facility or only what you draw |
| Establishment fee | Setting up the loan and lodging the caveat | Flat fee or percentage, and whether it is capitalised into the loan |
| Legal and title costs | Document preparation and the titles office lodgement fee | Whether the lender’s legal costs are capped |
| Valuation | Desktop, automated or full inspection | Desktop is faster and cheaper where the property allows it |
| Discharge or withdrawal | Removing the caveat once you repay | That it is disclosed now, not raised at payout |
| Default interest | The rate that applies if you run past the term | The rate itself, and exactly what counts as a default |
| Extension terms | What happens if your exit slips | Whether an extension is available and what it costs |
How do you compare two caveat offers properly?
Comparing monthly rates alone will mislead you. The number that matters is the total cost of the facility over the time you actually need it, including every fee on both sides, plus what happens if your exit slips by a month.
Take both offers, work out the total dollars from drawdown to discharge, and compare those two figures. A lower monthly rate with a higher establishment fee and an uncapped legal bill is frequently the more expensive loan.
Then ask each lender what happens if the exit is late. That answer separates lenders more than any rate does.
The comparison that actually matters
Instant Business Finance has priced more than $500 million of short-term secured lending since 2012, so we have a reasonable idea of what a file is worth before we look at it. We still will not quote it before we do.
Short-term secured money costs more than a bank term loan. It is priced for speed, a short term and a second position behind your existing mortgage.
Judging it against a bank rate you cannot access in the timeframe is not a real comparison. The real one is against the cost of the thing not being solved: the contract lost, the settlement that collapses, the garnishee, the discount you have to give because you could not pay on time.
Sometimes that maths is obvious. Sometimes a caveat loan is the wrong answer and something slower and cheaper is right. We will say so.
Frequently asked questions
What is the interest rate on a caveat loan in Australia?
There is no single rate. Caveat loans are priced per file, driven mainly by the equity behind the existing mortgage, the term, the strength of the exit and the property type. Any lender quoting a headline rate before seeing those things is quoting a marketing number, not your number.
Why won't you publish your rates?
Because a rate published without your circumstances is not accurate for you, and 'from' rates are almost never what anyone gets. We would rather give you the real number, in writing, once we know your situation.
When will I know what it costs?
In the written offer, before you sign anything, with every cost itemised. There is no cost to get to that point and no obligation to proceed.
Are caveat loans expensive?
They cost more than a bank loan, because they are fast, short and sit behind an existing mortgage. Whether that is expensive depends entirely on what the alternative costs you.
Does it cost anything to apply?
No. There's no cost to apply or check your eligibility. All costs are set out in writing in your loan offer before you sign anything.
Will checking my eligibility affect my credit score?
No. Our 60-second eligibility check doesn't make a credit enquiry. A credit check is only done later, with your consent, if you decide to proceed.
