What is a caveat loan?
A caveat loan is a short-term, business-purpose loan secured by a caveat lodged over Australian real estate. Unlike a first or second mortgage, a caveat is not a registered mortgage — it is a statutory notice that prevents the property from being sold or refinanced without the caveator's consent. This makes caveat loans dramatically faster to document and settle.
Caveat loans are used where speed matters more than price. Typical settlement is 48 to 72 hours from indicative terms — often faster than any other secured lending product in Australia.
When is a caveat loan the right tool?
- ATO debt — settle an urgent tax bill and preserve credit reputation.
- Deposit rescue — save a settlement where finance has been delayed.
- Stock or business acquisition — take advantage of a time-limited opportunity.
- Bridging — cover a short gap while a longer-term facility is finalised.
- Working capital — resolve a short-term cash flow squeeze.
Indicative loan parameters
| Loan size | $50,000 – $5,000,000+ |
| LVR | Up to 75% combined (real estate) |
| Term | 1 – 12 months |
| Settlement | 48–72 hours typical |
| Security | Registered caveat + supporting docs |
| Purpose | Business / investment only (non-NCCP) |
Caveat loan vs second mortgage
A caveat loan settles in days; a second mortgage typically takes 1–2 weeks because it requires the first-mortgagee's written consent. Caveat loans are priced higher to reflect the additional legal risk of an unregistered security. Where time allows, a second mortgage is usually the cheaper option — where it doesn't, a caveat gets the deal done.
How the process works
- Submit deal snapshot with property, purpose, and exit.
- Receive indicative terms within hours.
- Formal approval subject to title search and quick valuation.
- Documents signed, caveat lodged, funds released.