Short answer: The caveat loan process has five stages: assessment of ownership and equity, a written offer, signing, settlement on the title, and release of funds. It can run inside 24 hours. In Victoria settlement is a lodged caveat; in every other state the loan settles directly as a registered second mortgage.
Stage one — assessment
Everything starts with two questions: who owns the property, and how much room is there behind the existing debt.
Ownership is confirmed from the title itself, which is why the name on your rates notice needs to match the name on the title exactly. If the property is in a company or trust, we need to see the structure early rather than on signing day.
Value is formed either from a desktop or automated valuation, or from a full inspection where the property is unusual, rural or high value. The desktop route is what makes 24-hour funding possible; a physical inspection adds days no matter how urgent the file is.
Stage two — the offer
You get the amount, the term, every cost and every condition in writing before anything is signed. Nothing appears later.
This is the stage to ask questions, and the specific ones worth asking are set out on our caveat loan costs page. If any lender will not put all of it on one page, that is the moment to walk.
Stage three — signing
Documents are signed electronically. The practical requirements are simple and they are where most delays happen.
Every person on the title signs. Every director signs for a company. Every trustee signs for a trust. If one of them is on a plane, the file stops. Photo ID has to be current — an expired licence will hold up an otherwise perfect application.
Stage four — settling on the title
This is the one stage that works differently depending on where your property is, and it is worth understanding because it affects what you pay.
In Victoria, a caveat is lodged with Land Use Victoria. Lodgement is electronic and takes minutes. Once it is on the title the loan can fund, and the second mortgage is registered behind it afterwards.
Everywhere else in Australia, we settle the loan directly as a registered second mortgage. There is no separate caveat step, which means one piece of work instead of two and less legal cost for you, at the same 24-hour speed.
Either way, your existing mortgage stays exactly where it is, first in line, on the same terms. Nothing about your home loan changes.
Stage five — funding, and then discharge
Instant Business Finance has run this process since 2012, across more than $500 million of funding, which is why the timeline below is measured in hours rather than estimated in weeks.
Funds are released to your nominated account. For a file that started early in the business day with documents ready, this happens within 24 hours of the first enquiry.
At the end of the term the loan is repaid from your exit, and the caveat is withdrawn from the title. The withdrawal cost should have been disclosed in the original offer, not raised at payout.
What actually causes delays?
| Cause | How often | How to avoid it |
|---|---|---|
| A director or trustee unavailable to sign | Most common | Confirm everyone’s availability before you start |
| Expired photo ID | Common | Check every owner’s licence date now |
| Title held in a different entity than expected | Common | Pull a title search or check your rates notice |
| Property needs a full valuation | Occasional | Unavoidable for unusual, rural or high-value property |
| Existing mortgage statement unavailable | Occasional | Download it from internet banking before you apply |
| Exit plan unclear | Occasional | Be specific: what repays this, and on what date |
What will you need, document by document?
Every one of these can be gathered before you make the first call. Doing so is the single biggest thing you control in how fast this moves.
| Document | Why it is needed | Where to get it |
|---|---|---|
| Rates or council notice | Confirms the property and the owner name as it appears on title | Council, or your records — the most recent one |
| Current mortgage statement | Establishes the equity position immediately | Internet banking, most recent statement |
| Photo ID for every owner | Identity verification for each person on the title | Current driver licence or passport — check the expiry |
| Company or trust documents | Confirms who can sign where the title is not in personal names | Your accountant, or ASIC for company extracts |
| A written exit | What repays the loan and on what date | A contract, a letter of offer, an invoice, a refinance approval |
What the lodged caveat means in practice
Once the caveat is on the title, three things are true, and it is worth being clear about all of them.
Your existing mortgage is unaffected. It stays exactly where it is, first in line, with the same terms. Nothing about your home loan changes.
The property cannot be sold, transferred or refinanced without the caveat being dealt with first. That is the entire point of it. If you are planning to sell or refinance during the loan term, say so at the start so the exit is structured around it.
It is a public record. A caveat appears on a title search, so anyone who looks — including your existing lender or a future one — can see it. That is normal for this type of lending and is not something to be anxious about, but it is better known now than discovered later.
Frequently asked questions
How long does each stage take?
Assessment and offer usually run within the same business morning. Signing depends entirely on how quickly signatories are available. Lodgement takes minutes. Funding follows lodgement, giving a total of as little as 24 hours.
Does my existing lender get told?
Whatever is registered on the title is on a public register, so your lender can see it if they look. Your existing loan is unaffected and its terms do not change.
What happens to the security when I repay?
In Victoria the caveat is withdrawn and the second mortgage discharged; elsewhere the second mortgage is discharged. The cost of doing so should be disclosed in your original offer, not raised at payout.
Can the process happen entirely online?
Yes. Assessment, signing and lodgement are all electronic. The only thing that slows it down is people being unavailable.
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.
