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Caveat · 1-6 Months · Private Credit

Caveat Loans in
Australia - Settle in Days

Name: Mortgagefy
Address: Sydney, NSW, AU
Telephone: +61432634648
Price range: Free

By the Mortgagefy Team · Credit Rep 532656 of ACL 348324 · Published 2026-10-15 · Last reviewed 2026-10-15

When you need capital fast and don't want to subordinate your existing first mortgage - a caveat lodged over property gives the lender security, you keep your existing loan untouched.

Start Your Free Assessment 0432 634 648

Free Business & Commercial Assessment

Takes under 3 minutes. We'll match you with the right lender for your situation.

Who this is for

Business owners who need $50k-$2m fast against existing property equity, without touching their existing first mortgage.

Need capital in 3-7 days (bank application too slow)
Equity in property but can't or won't refinance the existing loan
Short-term bridge (1-6 months) with a clear exit (sale, refinance, major invoice)
ATO debt to clear before enforcement
Business cash-flow gap on a specific project
Buying property with a short settlement window

The real challenge

A caveat is a notice lodged against property that stops any dealing with the title without the caveat-holder's consent. For a lender, lodging a caveat gives them a priority interest without needing to register a formal second mortgage (which takes longer and often requires the first-mortgage lender's consent).

Caveat loans trade off: faster and simpler than a second mortgage, but typically lower LVR and higher pricing. Best for short-term needs (1-6 months) with a clear repayment event.

How Mortgagefy helps

Private credit specialists who routinely fund caveat loans in 3-7 business days.
No touching the first mortgage. Your existing bank doesn't need to consent (unless their mortgage docs explicitly require it, which is unusual for residential).
Clear exit planning. We frame the exit so the lender approves - sale contract, refinance offer, major invoice settlement.
Honest total cost shown upfront. Caveat loans are expensive. We tell you the dollar cost over the term so you decide with full numbers.

Need to model repayments first? Try our Sydney home-loan calculators for an indicative figure.

How it works

Scoping call

15 min - amount, timing, property details, existing mortgage balance, exit.

Term sheet

24-48 hours - indicative term sheet from 1-2 private credit lenders.

Documentation

Caveat security docs, exit evidence, ID, basic financials.

Settlement 3-7 days

Caveat lodged, funds disbursed.

Get a personalised answer in 2 minutes

Free, no obligation. We'll match you with the right lender for your situation.

Frequently asked questions

What's a caveat?

A legal notice lodged on a property title that stops any dealing with the title without the caveat holder's consent. Gives the lender a priority interest without a formal registered mortgage.

What LVR can I get on a caveat loan?

Typically 60-75% of combined debt (existing mortgage + caveat loan). So on a $1m property with a $500k existing mortgage, a caveat loan might fund $100k-$250k.

How much does a caveat loan cost?

Pricing is high — typically 1.5-3% per month plus establishment fees of 1-3%. On a $200k caveat loan for 3 months, total cost around $10k-$20k. Only the right product when the exit is clear and the alternative is more expensive.

Do I need my first-mortgage lender's consent?

Usually not for residential - a caveat is a lesser interest than a mortgage, so it doesn't typically need the first-mortgage lender's formal consent. Commercial mortgages sometimes have clauses requiring consent for subsequent interests - we check this on each deal.

How is a caveat different from a second mortgage?

A second mortgage is a formal registered interest with its own loan documents and typically requires the first-mortgage lender's consent. A caveat is faster, simpler, lower LVR, higher pricing - a short-term tool. For longer-term needs, a second mortgage is usually cheaper.

What happens if I don't repay the caveat loan?

The lender can enforce the caveat and ultimately force a sale of the property (through court process) to recover their advance. In practice, caveat loans with clear exit evidence rarely enforce; they get refinanced out.

Can I use a caveat loan to clear ATO debt?

Yes - common use. See our Business Loan to Pay Out ATO Debt page for the full workflow.

Get your free caveat loan assessment

3-7 day settlement. $50k-$2m. Keep your existing mortgage untouched. We know the specialist private credit lenders.

Start Your Free Assessment Call 0432 634 648

Related guides

Short-Term Business Loan

The general short-term category.

Business Loan to Pay Out ATO Debt

The ATO scenario specifically.

Second Mortgage Commercial

Longer-term alternative with better pricing.

Business Loan to Finish Home Construction

Caveat loan use for construction.

Working Capital Loan

Line of credit alternative for ongoing cash flow.

Business Loans Sydney

Longer-term business facilities.

Information checked October 2026. This information is general in nature and does not take account of your personal objectives, financial situation or needs. Business, commercial and development finance eligibility, pricing and documentation varies by lender and changes frequently. Confirm current requirements with your chosen lender and seek professional advice before applying. Mortgagefy — Credit Representative 532656 of ACL 348324.

Caveat Loans inAustralia - Settle in Days