Private & short-term · caveat loans
Fast funding when a registered mortgage isn't possible.
A short-term loan secured by a caveat over property rather than a registered second mortgage. Faster to settle (days, not weeks) and more flexible than mainstream lending. Significantly more expensive; only sensible for genuinely time-critical situations.
What it is, when it fits
Plain English, with the trade-offs.
A caveat loan is a short-term loan secured by a caveat lodged over property rather than a registered mortgage. The caveat warns prospective dealings that the lender has an interest, but it doesn't carry the legal force of a registered mortgage. That sounds like a downside, and structurally it is, but it dramatically simplifies and accelerates settlement: caveat loans can settle in 2 to 7 days where a registered second mortgage typically takes 4 to 8 weeks. The trade-off is cost. Caveat lenders charge 12% to 25% p.a. plus establishment fees, and almost always require a clear exit strategy: a refinance, a property sale, an incoming settlement, an asset disposal. Without a credible exit, the caveat loan becomes a recurring problem rather than a bridge. We use caveat lending sparingly: when the time saving genuinely outweighs the rate premium, when the exit is documented and reliable, and when the property security comfortably covers the loan plus interest accrual across the term. We tell clients no when none of that is true.
Pen on a settlement document, two people deciding together.
Typical scenarios
Bridging a property settlement running short
Why: Buyer's finance delayed; vendor settlement deadline 5 days away; deposit forfeit risk.
Outcome: $400K caveat loan, 7-day settlement, 3-month term, exited on the rescheduled buyer settlement.
Urgent business cash injection where time matters more than rate
Why: Time-critical contract opportunity, mainstream finance 4 weeks out.
Outcome: $250K caveat loan, 4-day settlement, 6-month term, refinanced into mainstream working capital once ABN and trading data caught up.
Refinancing a maturing private loan
Why: Existing private lender exiting, new mainstream lender approved but settlement gap.
Outcome: $1.2M caveat bridge, 14-day settlement, 4-month term, exited cleanly once mainstream loan settled.
Pre-sale equity release
Why: Property listed for sale, sale process 6 to 9 months, pre-sale equity needed.
Outcome: $600K caveat loan, 9-month term, exited on settlement of the property sale.
Lenders for this product
Who we work with.
- Assetline Capital
- Stamford Capital
- Fortis Capital
Lender accreditation varies; not every lender is available for every deal. We pick from the panel based on your specific situation.
How it works
From brief to settlement.
- 01
Situation and exit assessment
Before anything goes to a lender, we test the exit. A caveat loan without a credible exit is the wrong product. If we can't see one, we say so.
- 02
Lender selection
Three lenders cover most caveat scenarios. We match the deal to the lender's appetite (loan size, security type, location) and brief them on the exit.
- 03
Term sheet and due diligence
Indicative terms within 24 hours. Lender DD on the property, the exit, and your financial position runs in parallel; typical 3 to 5 working days.
- 04
Settlement
Caveat lodged, funds released, total cost confirmed in writing. Most facilities run 1 to 12 months; we coordinate the exit on agreed timing.
Indicative pricing & terms
Ranges, not promises.
Rate range
12 to 25% p.a. plus establishment fees
Loan size
$50K to $10M
Term
1 to 12 months typical
Security
Caveat over property; sometimes a registered mortgage co-lodged
Indicative only; specific pricing depends on lender, security, and your business profile.
Frequently asked
Honest answers, plain English.
Caveat vs second mortgage, what's the difference?
A caveat is a notice on the title; a second mortgage is a registered legal interest. Second mortgages take precedence in any disposition; caveats are more easily defeated but much faster to lodge and remove. From a borrower's perspective the immediate practical difference is settlement speed: caveats settle in days, registered seconds in weeks.
How fast can a caveat loan actually settle?
Genuinely 2 to 7 days from agreed term sheet, sometimes faster on smaller loans where the property is well documented. The slowest part is usually the caveat lender's due diligence on title and your stated exit. Don't expect same-day settlement; do expect a working week.
How is total cost actually calculated?
Most caveat loans charge a monthly rate (1% to 2% per month is normal) plus establishment fees (1% to 3% of the loan), often with a minimum interest period regardless of how fast you exit. We model the all-in cost including establishment, ongoing, and discharge fees before signing.
When is a caveat loan genuinely wrong?
When the exit is a hope rather than a plan, when the property security barely covers the principal (no buffer for interest accrual), when the underlying problem is structural rather than timing, when a registered second mortgage at half the rate would still settle in time. We say no in all four scenarios.
Property type restrictions?
Most caveat lenders prefer residential or commercial property in major metropolitan markets. Rural, specialised commercial, or properties with title complications are harder and often more expensive. We screen the property type before applying.
What happens if I can't exit on time?
Most caveat loans allow extension on payment of an extension fee, often at higher interest. Repeated extensions usually signal the deal isn't working; the lender will eventually move to enforcement. Plan the exit before the loan, not during it.
Related products
If this isn't quite the fit.
Next step
Twenty minutes, no obligation.
Tell us the shape of the deal and the timing. We'll send a lender shortlist for caveat loans or, if it isn't the right fit, an honest signal of what is.