Last updated: 12 August 2025

By Michael Pajar, Director & Business Finance Broker, Casey Asset Finance

When cashflow pressure hits—ATO chasing, supplier deadlines, a settlement date looming—it’s tempting to grab the fastest funding you can. Quick caveat loans can move fast because they’re secured against property, but they’re also unforgiving if the exit runs late. This guide gives you the clear steps, documents, timelines and costs—and, crucially, the risks and safer alternatives—so you can act quickly without risking your home.

What is a caveat loan?

A caveat loan is short-term business finance secured by lodging a caveat on your property’s title. A caveat blocks new dealings (like further mortgages or a sale) until the loan is repaid and the caveat is withdrawn. It’s a fast way to leverage equity, but remember: a caveat isn’t a transfer of title; enforcement requires legal steps. Use this tool when speed matters and your exit is crystal-clear.

How “quick” is quick?

With documents ready and a clean title, settlement is typically 24–72 hours, subject to lender capacity, legal checks and any required consents.

Timeline at a glance:

Enquiry → Title search/desktop valuation → Conditional offer → Docs & legal → Settlement

What speeds it up

Clear equity (comfortable LVR, max ~75%)
Simple ownership (single entity, current ASIC details)
Proof of exit (sale contract/refinance pre-approval/incoming payment)
Up-to-date ATO and rates info

What slows it down

First-mortgagee consent/priority issues
Complex titles (trusts, multiple properties)
Missing documents / unclear exit
Significant ATO arrears without a plan

Eligibility snapshot

Equity/LVR: Lenders price to risk. Higher equity generally = faster, cheaper.
Property: Residential and commercial usually acceptable; some rural accepted.
Entity: Company/Trust with active ABN. Director guarantees common.
Credit history: Bad credit can be considered—security and exit matter more than score.
Exit strategy: Non-negotiable. Examples: imminent sale settlement, refinance approval in progress, insured progress claim, confirmed debtor payment.

Documents that make it fast

Have these ready to compress timelines:

Director ID + driver’s licence
Title reference / rates notice + latest mortgage statement(s)
ASIC current company extract
3–6 months business bank statements (sometimes)
ATO portal summary (if relevant)
Proof of exit: signed sale contract, refinance pre-approval, verified incoming payment
Accountant letter if requested

Have these ready = fastest path.

Costs & traps

Typical cost components

Interest (short-term pricing)
Establishment / legal / settlement fees
Valuation (often desktop for speed)
Caveat lodgement + removal costs
Default interest if timelines slip

Worked example (illustrative only)

Borrow $150,000 for 60 days
Quoted interest ~ 2.5% per month → approx $7,500 over 2 months
Establishment/legal/settlement → say $3,200
Caveat lodge/remove + searches → $600
Your broker’s referral fee typically 2-4% of the loan amount - let’s say $4,500 (3%)
Total cost ≈ $15,800 over 60 days (if repaid on time)
If exit slips by 30 days and default rate triggers, cost can jump materially—sometimes double the extra month.

Costs vary by lender, equity, title complexity and urgency. The fastest headline isn’t always the cheapest or safest overall.

If you want to see if you have other options to avoid risking your principle place of residence or investment property. Text “caveat loan” to 0450 622 115.

Risk Box

Rollover risk: Short terms punish delays; one missed milestone can add thousands.
Equity erosion: Fees + default interest compound quickly.
Priority & consent: Your first mortgagee can block dealings; caveats can be challenged.
Legal costs: Escalate rapidly if you breach.
Exit dependency: If your exit fails, the lender still expects repayment.

Ask yourself now: If your exit falls over, what’s your Plan B to save your property?

Caveat vs second mortgage vs bridging vs unsecured

When a caveat can fit

Clear equity + documented near-term exit
Time-sensitive trigger (settlement, ATO pressure, supplier deadline)
You accept short-term cost for speed

When a second mortgage / bridging is safer

You need longer runway to exit
Lower default margins and clearer consumer protections on some structures (speak to your legal professional)
You prefer more time to refinance or sell

When an unsecured business facility is wiser

You want to keep the home off the line
You can service repayments from cashflow
Yes, rate may be higher, but risk is capped and speed can still be fast

Disclaimer: Always make sure to speak to a legal specialist so you are aware of all the potential risks.

If your exit slips (Plan B/C)

Week 2–3 early warning: push for contract milestones, valuation updates, refinance timeframes.
Broker actions: line up back-up refinance, partial payout plan, short extension before default margins trigger; or restructure to a longer-dated facility if serviceability allows.
Your next step: call early. Extensions are cheaper before breach.

The typical caveat loan step-by-step process

Speak to the broker/lender: confirm purpose, timing, exit evidence.
Title search + desktop valuation: check priority/consent blockers. Confirm property value
Receive term sheet (offer) : Outline all the conditions, costs and timing.
Docs + legal pack: Lender coordinates settlement and caveat lodgement.
Pre-book exit: refinance, sell property, or alternative facility to avoid rollovers.

Why use a specialist broker

Security-first: protect your home; then solve the cashflow gap.
Policy fit: access to multiple lenders and niches that speed approvals.
Lower total cost: we typically reduce total cost through fit, packaging and sequencing—not just headline rates.
Realistic timelines: we’ll advise how best to proceed, or if an urgent caveat loan is the only option.

Contrast Close (numbers that matter)

Cost of waiting: Delaying a supplier order by 30 days could cost $35,000 in lost margin this quarter → that’s ~$11,700/month.
Cost of a safer alternative: A 24-month unsecured facility for $120,000 might cost ~$20,000 for the full year with zero property at risk.

State nuances (quick callout)

Terminology and processes around consent and priority can vary between VIC, NSW and QLD. Always confirm:

Does the first mortgagee require consent or notification?
Are there priority issues that could block or delay settlement?
Include one official registry link for your state to keep this section authoritative and concise.

FAQs

How fast can a quick/fast caveat loan settle in Australia?

It can be 48–72 hours, subject to documents, title checks, lender capacity and any required consents. The loan contract stage can take the longest, especially if your legal representative needs to speak to you to discuss your legal obligations.

Do I need first-mortgage consent—and what if they say no?

Some titles require consent or priority acknowledgements. If consent is refused or delayed, settlement may be blocked. We assess this at title-search stage.

To save headaches, check if your lender is open to this type of funding before you pay the standard $500-$1,000 non-refundable commitment fee.

What documents will I need?

This can include (but limited to): ID, title/rates notice, current mortgage statement(s), ASIC extract, 3–6 months bank statements (sometimes), ATO portal (if relevant), detailed proof of exit strategy (property sale contract, refinance pre-approval or verified incoming payment).

Can I get one with bad credit or low/no docs?

Often, yes—security and exit strategy matter most. Expect higher pricing if risk is elevated.

What’s the max LVR?

Almost every lender in this space typically caps at 75% LVR. This includes your existing mortgage (if relevant), plus the new caveat loan funds, plus the caveat loan fees (commitment fee, valuation fee, legal fees, broker referral fee, lender establishment fee, etc). The total LVR usually cannot exceed 75%.

How is a caveat removed after settlement?

Once repaid, the lender instructs removal and the caveat is withdrawn at the titles office.

Caveat loan vs second mortgage/bridging—what’s safer and when?

Please speak with your legal representative for specific tailored advice. They can determine what is safer for you. Unsecured facilities can protect your home. The best option balances speed, cost, and property risk.

My property is in a spouse/other entity’s name—can I still apply?

Typically no, but it depends on beneficial ownership, guarantees and consent. Best to speak with the lender to gauge their appetite.

What happens if my exit falls through at the last minute?

Call immediately. Your broker or the lender may work with you on Plan B/C—partial payouts, refinance alternatives, or negotiated extensions before default margins trigger.

Disclaimer: General information only, not financial or legal advice. Credit must be 100% for business purposes. These loans usually do not have your standard consumer protections. Timeframes and approvals depend on individual circumstances, property title, exit strategy, legal reviewing contracts, and lender policies. Please speak to your legal/tax advice professional before taking on any credit.

Final Words

Caveat loans are a last-mile tool—powerful when your exit is nailed, dangerous when it isn’t. If you’re weighing speed against risking your home, get a second set of eyes. You never know if you have an option that can avoid risking the family home.

Quick Caveat Loans in Australia: What You Must Know Before You Risk Your Property

Table of Contents

What is a caveat loan?