Short answer: A caveat loan is a short-term business loan secured by lodging a caveat, a legal notice of interest, on the title of property you own. Because a caveat can be lodged in hours and doesn't need your existing lender's consent, caveat loans can be funded in as little as 24 hours, often without financials.
How a caveat loan works
When you take a caveat loan, you agree to let the lender lodge a caveat on your property's title. The caveat warns anyone searching the title that the lender has an interest, so the property can't be sold or refinanced without dealing with the lender first.
Unlike a registered mortgage, a caveat doesn't usually need your first lender's consent, which is what makes it fast.
When a caveat loan makes sense
- You need funds within days, not weeks
- You have equity in property but no time (or no current financials) for a bank
- You have a clear exit: a sale, refinance, payout or incoming payment
- You want to leave your existing home loan untouched
How fast can a caveat loan settle?
With us, caveat loans can be funded in as little as 24 hours. The steps are an eligibility check (60 seconds), confirming ownership and equity (often a desktop valuation), a written offer, electronic signing, lodging the caveat and funding.
What does a caveat loan cost?
Caveat loans are short-term private finance, so they're priced above bank loans. Costs usually include interest (often charged monthly or capitalised), an establishment fee and legal or registration costs. Every cost is set out in your offer before you sign.
Caveat loan vs second mortgage
Both sit behind your existing loan. A caveat is quicker to put in place. A second mortgage is a registered security that can suit larger amounts and longer terms. Read the full comparison.
