How fast can a caveat loan settle?
What happens in the 48 hours
Day one: application with the property address, existing mortgage balance, loan amount, purpose and exit; the lender runs a title search and a desktop valuation and issues an indicative offer within hours. Day two: the loan agreement and caveat documents are signed, often electronically with a solicitor certificate, the lender lodges the caveat and confirms it on title, and funds are released. Where the borrower is a company or trust, the lender also needs ASIC extracts, the trust deed and director guarantees, which is where a day is usually lost.
What makes it faster
- A clean title with one registered mortgage and no existing caveats
- A current rates notice and mortgage statement ready to send
- A clear, documented exit such as a sale contract or a bank approval in progress
- A borrower entity whose documents are in order
- A metro property with obvious comparable sales
What makes it slower
An existing caveat from a previous lender or a dispute, a mortgage in arrears that the first lender is enforcing, a property in a company that has changed directors recently, a trust with an unusual deed, or a property where the desktop value is uncertain and the lender wants a kerbside inspection. None of these stop the loan, but each can add days, which matters when the loan exists to meet a settlement date.
Speed is not the only question
The fastest lender is not always the best one. Some private lenders quote a low rate and then load fees at settlement; some charge default interest from day one of any extension. A specialist will settle you with a lender who does what they said in the time they said, which on a deadline is worth more than a fraction of a per cent.
Not sure which lender fits your situation?
Get help with caveat loans and private lending
Caveat lending is fast, expensive and unregulated in most cases, which is exactly why the lender you end up with matters. We connect you with a finance specialist who deals with private and caveat lenders and knows which ones settle on their word.
Property Finance Help connects users with finance professionals who can help review the finance pathway for the property, loan purpose and lender policy fit.
Property Finance Help is a lead generation service, not a lender, broker, or financial adviser. All information on this website is general in nature and does not take into account your personal objectives, financial situation, or needs. Consider seeking independent professional advice before making any financial decision.
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