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A caveat loan is built for speed, and the process reflects that. There is no credit committee queue and no serviceability model to satisfy. What is being checked is simple: does the company or trust own the property, is there enough equity behind any existing mortgage, and is there a credible way the loan gets repaid.
Step 1: the enquiry
Four details start it: the amount, the security property, the purpose and the timeframe. The purpose matters because this is business-purpose lending to companies and trusts, not consumer credit. A sentence is enough at this stage.
Step 2: title and equity check
A title search confirms who owns the property and what already sits on it - a first mortgage, another caveat, a writ. The existing debt is compared with a realistic value to work out the combined loan-to-value ratio. Caveat loans commonly run up to around 65% combined LVR, subject to assessment. A desktop or kerbside valuation is often enough; a full valuation is ordered where the asset is unusual or the amount is large.
Step 3: indicative terms
Terms come back from the lender, usually within 24 to 48 hours of your reply to their introduction: amount, rate, term, fees and the exit the lender is relying on. Caveat loans are short, typically one to six months, with interest usually prepaid or capitalised rather than paid monthly.
Step 4: documents
Once terms are accepted, the loan agreement, the caveat and a business purpose declaration are issued. Directors or trustees sign, usually with a guarantee. Independent legal advice is commonly required for guarantors, and it is worth booking early because it is the step borrowers most often leave late. See what is in a caveat loan agreement.
Step 5: lodgement and settlement
The caveat is lodged electronically with the state land registry. Once lodgement is confirmed, funds are released - to the borrower, or directly to the party being paid, such as the ATO or a vendor.
Step 6: repayment and removal
At the end of the term the exit lands: a refinance, a sale or incoming funds. The loan is repaid and a withdrawal of caveat is lodged, which clears the title. See how a caveat is removed.
What slows it down
Almost never the lender. It is a title in the wrong name, an expired company registration, a trust deed nobody can find, a first mortgage statement that takes a week to arrive, or an exit that does not hold up when questioned. Having those ready is the single biggest thing a borrower controls.
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Get matched with a funderFAQ
How long does the caveat loan process take?
Indicative terms usually come back from the funder within 24 to 48 hours of your reply, and a clean file on metropolitan property can settle within days. Title problems, a slow valuation or missing company documents are what stretch it.
What documents are needed for a caveat loan?
Usually a rates notice, photo ID for the directors or trustees, a current statement on any existing mortgage, and the company or trust documents that show who can sign. Full financials are generally not required.
When is the caveat actually lodged?
After the loan documents are signed and before funds are released. The caveat is lodged electronically against the title, and settlement follows once lodgement is confirmed.