What are Caveat Loans?
In a nutshell, Caveat loans are basically like a mortgage or charge over your property. You receive funds and the lender puts a charge over your property to secure the repayment of the debt. They can typically be behind another mortgage over your property.
Who can successfully apply for caveat loans?
The main requirement is having equity in your real estate property. The equity is the amount of value between the current debts on the property and price it would sell for. This is often called to LVR or Loan to Value Ratio. There are other requirements however equity is the key one.
Why do borrowers use caveat loans?
Simple answer, they need funds and need them fast. Whether you have an immediate cash need whether it’s for your business, investment, to pay debts or for your property. The point is that the borrower often has an urgent cash requirement and can’t afford to wait. They know exactly how long they will need the funds for (typically between 1 to 12 months) and how they will pay them back.
Our experienced team will help structure the right caveat loan for your situation so that you can get access to your money quickly. We understand that with a caveat loan you need liquidity fast, which is why we’ve streamlined the standard process further by using our pool of private lenders to get your cash fast.
- No registered valuations required*
- Caveat Loans settle same day in most cases*
- Deal direct with the source of funds
- Lowest interest rates
- Brokers welcome
- Loan terms up to 3 years possible
- Loans must be strictly for business purposes
- Real estate security required