When you need funding urgently, caveat loans offer the fastest path to capital in Australia. Here's everything you need to know about securing a caveat loan within 24 hours.
What is a Caveat Loan?
A caveat loan is a short-term loan secured by placing a caveat (legal notice) on a property you own. This gives the lender security interest without requiring a formal mortgage registration, which dramatically speeds up the approval and funding process.
Why Caveat Loans Are So Fast
Traditional mortgages can take weeks due to:
- Extensive credit checks
- Income verification
- Formal mortgage registration (2-3 weeks alone)
- Multiple valuation requirements
Caveat loans bypass most of this by:
- Focusing on property equity, not credit score
- Minimal documentation requirements
- No formal mortgage registration delay
- Quick property valuation (often desktop or drive-by)
In most cases, you can be approved within hours and funded the same or next business day.
Who Uses Caveat Loans?
Common scenarios include:
- Business owners: Urgent cash flow needs, equipment purchases, or opportunity investments
- Property investors: Auction deposits, settlement shortfalls, or quick renovations
- Developers: Time-sensitive land purchases or holding costs
- Individuals: Emergency expenses, debt consolidation, or urgent legal matters
Requirements for 24-Hour Approval
To qualify for fast approval, you'll need:
- Unencumbered Property Equity: Available equity in property you own (typically need 50-65% LVR)
- Clear Title: Property must have clear or minimal encumbrances
- Valid ID: Driver's license or passport
- Property Evidence: Recent rates notice or title deed
- Clear Purpose: Legitimate use of funds
- Exit Strategy: How you'll repay (sale, refinance, income, etc.)
The 24-Hour Process
Hour 1-2: Application
- Submit online or call lender
- Provide basic details and property information
- Initial assessment of equity position
Hour 3-6: Valuation
- Lender arranges quick property valuation
- Often desktop or drive-by for speed
- Confirms available equity
Hour 6-12: Approval
- Loan terms offered
- Agreement prepared and sent
- You review and sign documents
Hour 12-24: Settlement
- Caveat lodged on property title
- Funds transferred to your account
- Loan active, interest begins
Costs to Expect
Caveat loans are more expensive than traditional loans due to speed and convenience:
Interest Rates: 2-4% per month (24-48% per annum) Example: $100,000 loan at 2.5% monthly = $2,500 per month interest-only
Fees:
- Application fee: $500-$1,500
- Valuation: $200-$800
- Legal/caveat lodgement: $500-$1,000
- Monthly service fee: $0-$200
Total cost for 3-month $100,000 loan:
- Interest: $7,500
- Fees: ~$2,500
- Total: ~$10,000 (10% of loan amount)
While expensive, the speed can save deals or prevent much larger losses.
Maximum Loan Amounts
Typical caveat loan ranges:
- Minimum: $50,000
- Maximum: $5 million+
- Sweet spot: $100,000-$500,000
LVR (Loan to Value Ratio):
- First mortgage: Up to 65% of property value
- Second mortgage: Up to 80% combined LVR
Red Flags to Avoid
Not all caveat lenders are equal. Avoid:
- Lenders requiring upfront fees before approval
- Unclear fee structures
- No proper loan agreement
- Pushy sales tactics
- Rates above 5% per month (very high even for caveat loans)
Real Example: Business Owner Success Story
Sarah, Sydney cafe owner, needed $80,000 urgently when her supplier offered a 48-hour-only discount on equipment worth $120,000 - a $40,000 saving.
- Monday 9am: Applied with property equity of $300,000
- Monday 2pm: Approved for $80,000 at 2.8% monthly
- Tuesday 10am: Funds in account, purchased equipment
Total cost over 6 months: $13,440 interest + $2,000 fees = $15,440 Savings from equipment discount: $40,000 Net benefit: $24,560
When NOT to Use Caveat Loans
Avoid caveat loans if:
- You have time to get traditional finance (cheaper)
- You can't afford the interest costs
- You don't have a clear exit strategy
- The deal isn't genuinely urgent or valuable
- You're using it to delay inevitable financial problems
Exit Strategies That Work
Lenders want to see realistic repayment plans:
Option 1: Property Sale "I'm selling investment property, settlement in 90 days"
Option 2: Refinance "Need 6 months to improve credit, then refinance to bank"
Option 3: Business Income "Contract payments due in 60 days will clear loan"
Option 4: Another Property Sale "Primary residence selling, using caveat loan on investment property to bridge gap"
How to Apply Through Introducr
- Visit our Quick Connect page
- Select "Caveat Loan" as loan type
- Indicate "Urgent (within 1 week)" timeline
- Provide property and loan details
- We'll match you with lenders who can deliver 24-hour approvals
Most borrowers receive lender responses within 2-4 hours of submission.
FAQs
Can I get a caveat loan with bad credit? Yes. Caveat lenders focus primarily on property equity, not credit score. However, very poor credit or bankruptcy may still require explanation.
Do I need to own the property outright? No. You can have an existing mortgage, as long as there's sufficient equity available. Lenders typically require 35-50% available equity on top of existing debt.
How do I repay a caveat loan? Most are interest-only with principal due at term end (typically 3-12 months). You can often repay early without penalty.
What if I can't repay on time? Many lenders will extend for additional interest and fees, but this should be negotiated before the due date. Failure to repay can result in property enforcement.
Next Steps
If you need urgent funding and have property equity:
- Calculate your equity: Property value minus existing loans
- Determine amount needed: Be specific
- Have your exit strategy ready: How will you repay?
- Connect with caveat lenders now: Get responses within hours
Time is money in urgent situations. The faster you move, the more options you'll have.
Ready to explore caveat loan options? Get started now or view our caveat loans guide.