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Home / Caveat loans
Caveat & short-term finance · via Esteb Capital

Fast finance for a deal with a deadline.

A caveat loan is short-term, business-purpose finance secured by a caveat over property — a simpler legal instrument than a full mortgage, which is what lets it fund in days. It's the right tool for a narrow set of moments: a settlement shortfall, an urgent business need, bridging a defined event. It also costs more than mainstream finance and demands a clear exit, so it should only ever be used deliberately. We'll tell you honestly whether it fits before anything proceeds.

Discuss a deal → See the speed-vs-cost trade-off Business & investment purposes only · arranged through Esteb Capital
Secured by a caveat Short-term by design Clear exit required Higher cost than a bank
What it actually is

A caveat instead of a full mortgage — that's the whole difference.

Registering a mortgage takes time. A caveat is a notice of interest lodged on the property title, which a lender can put in place quickly — so funds can be released in days rather than weeks. You trade that speed for a higher, per-month cost and a short term. It is not a home loan and it is not a long-term facility.

Caveat loan

Speed, at a premium

Time to fund~24–48 hrs
SecurityCaveat over property
Term1–12 mths (up to ~36)
Indic. cost~1.5–2.5% / month
PurposeBusiness / investment
ExitDefined & dated
Mainstream mortgage

Lower cost, longer wait

Time to fund~4–6 weeks
SecurityRegistered mortgage
TermUp to 30 years
Indic. costMoves with cash rate
PurposeConsumer or business
ExitLong-term amortising

The trade-off, in one picture.

A caveat loan buys speed and pays for it in cost. Those two dials move in opposite directions — the same thing that makes it fast makes it expensive to hold. That's not a catch; it's the entire design. Read both before you decide.

◁ Slower · lower costFaster · higher cost ▷
Time to fundshorter is faster ~24–48 hrs
Mainstream, for comparisonindicative ~4–6 weeks
Indicative cost of a caveat loanlonger is more expensive ~1.5–2.5% / mth
Mainstream, for comparisonmoves with the cash rate cash rate 4.35%
You win on speed. Funding in about one to two business days for a well-prepared file with clean security and a clear exit — where a bank needs weeks.
You pay on cost. Roughly 1.5%–2.5% per month (about ~10%–30%+ p.a.), plus establishment and legal fees — far above the 4.35% cash rate mainstream loans track.

Indicative only and highly deal-specific — actual speed and pricing depend on the security, LVR, exit, valuation and legal work, and how complete your documents are. Monthly rates are not a comparison rate and are not directly comparable to an annual bank rate. Mainstream timing and pricing shown for contrast, not as a criticism; not an offer of credit, a quote, or a guarantee of approval or settlement.

When it fits — and when it doesn't

The right tool for a few situations, the wrong one for most.

A caveat loan earns its cost only when speed is genuinely the problem and the repayment is genuinely defined. If either of those isn't true, something cheaper is almost always the better answer — and we'll say so.

Suitable — short-term, business-purpose
Settlement shortfallA hard settlement date a bank can't reach; funds in days to complete, then refinance or sell.
Bridging a defined eventCover the gap until a known, dated event — a property sale, a refinance approval, an incoming receivable.
Urgent business needShort-term working capital, stock or a supplier deadline secured against property, with a clear repayment source.
Clearing a time-critical liabilityClear a pressing tax or creditor demand so a mainstream refinance can proceed, then exit.
Development / stock shortfallBridge a short construction or residual-stock gap ahead of a take-out facility or sales.
Not suitable — the wrong tool
Long-term borrowingNot a substitute for a home loan or term facility — the per-month cost makes a long hold expensive.
Personal or household purposesThis is business/investment-purpose finance; everyday consumer borrowing belongs in regulated consumer credit.
No clear exitIf you can't name and date the repayment — a sale, a refinance, a receivable — a caveat loan is the wrong tool.
Chasing the lowest rateIt costs more than mainstream finance by design; if time isn't critical, a bank or bridging loan is usually cheaper.
Papering over ongoing lossesIt buys defined time, not a turnaround — used to fund recurring shortfalls it gets expensive fast.
What it costs

Priced per month, because the hold is short.

A caveat loan's cost is monthly interest plus establishment and legal fees — and interest is often capitalised rather than paid along the way. Every figure below is indicative and set deal-by-deal on the security, LVR and exit. None of it is an offer or a comparison rate.

Interest (indicative)
~1.5–2.5% / month

Floor ~1.5%/mth for strong metro security; broadly ~10–30%+ p.a. equivalent.

Establishment fee
~2–5%

Of the loan amount, on top of interest.

Legal & docs
~$1.5k–$3.5k

Plus a valuation where required.

Max LVR (indicative)
up to ~65%

Combined LVR; lower LVR and a clean exit pull pricing down.

Sources: indicative broker/lender market pricing (Switchboard Finance, Aha Money, Emet Capital, Darkhorse Financial), 2026 — non-primary, low-confidence and shown as ranges only. The RBA cash rate is 4.35% p.a. (held at the July 2026 Monetary Policy Board meeting); short-term private rates sit well above it and move with it. Monthly rates are not comparison rates. All figures are estimates, not an offer of credit, a quote, or a guarantee of pricing or approval.

The exit is the whole plan

Because a caveat loan is short and expensive to hold, the single most important question is how it gets repaid — and by when. A credible exit is usually a property sale or a refinance onto a longer-term facility, planned and dated before you draw down, not hoped for afterwards. If the exit slips, default interest applies and, in the worst case, the lender can act on the caveat through the courts.

Our job is to pressure-test that exit with you first, and often to tell you a bank, a bridging loan or a longer-term facility is the better answer. Where a caveat loan genuinely is the right tool, we arrange it through Esteb Capital and structure it around the exit from day one.

Caveat and short-term private finance on this page is business- or investment-purpose finance arranged through Esteb Capital and is generally not regulated under the National Credit Code. It is higher-cost, short-term finance that is not appropriate for long-term or personal/household borrowing. Rates, LVRs, fees and timings are indicative and deal-specific — not an offer, a quote, a comparison rate, or a guarantee of approval. Seek your own professional legal, tax and financial advice.

Who this is for

Business-purpose finance, outside the consumer credit rules.

Caveat loans are used for business or investment purposes, which sits outside the National Credit Code that protects consumer loans. That brings flexibility and fewer protections — so the purpose has to be genuine, and it has to be checked, not just declared.

Purpose test

Business or investment purpose

The National Credit Code regulates credit that is wholly or predominantly for personal, domestic or household use. Credit that is wholly or predominantly for business or investment purposes sits outside it — typically supported by a Business Purpose Declaration.

National Consumer Credit Protection Act 2009 (Cth), National Credit Code Sch 1, s5–6 & s13. General information, not legal advice.

The honest caveat

A declaration alone isn't enough

ASIC has acted where lenders leaned on a business-purpose declaration without reasonable enquiry into the true purpose. The presumption doesn't hold if the purpose is really consumer — and commercial/business loans carry the lowest level of legal protection for borrowers. So we check the purpose is real before proceeding.

ASIC responsible-lending guidance; ASIC private-credit review REP 814 / REP 820 (2025). Not legal advice.

Common questions

Caveat loans, answered straight.

What is a caveat loan?

A caveat loan is short-term finance secured by a caveat — a notice of interest lodged on a property's title — rather than a full registered mortgage. Because the caveat is simpler to put in place, funds can be released in days. It's used for business or investment purposes, and we arrange it through Esteb Capital.

How fast can a caveat loan settle?

For a well-prepared file with clean security and a clear exit, indicatively around 24 to 48 hours — days, not weeks. Actual speed depends on the security, valuation and legal work and how complete your documents are. These are indicative timings, not a guarantee.

What does a caveat loan cost?

More than mainstream finance, by design. Interest is quoted per month — indicatively around 1.5% to 2.5% a month for suitable security (roughly ~10% to 30%+ p.a.) — plus an establishment fee of about 2% to 5% and legal costs of about $1,500 to $3,500. Interest is often capitalised. Every deal is priced on its own security and exit; these are indicative figures, not an offer or a comparison rate.

When does a caveat loan actually make sense?

When speed is genuinely the problem and the repayment is genuinely defined — a settlement shortfall, bridging a dated event, or an urgent business need with a clear exit. If time isn't critical, or you can't name and date the repayment, something cheaper is almost always the better answer, and we'll tell you so.

Why do I need an exit strategy?

Because a caveat loan is short and expensive to hold. The exit — usually a property sale or a refinance onto a longer-term facility — is how it gets repaid, and it needs to be planned and dated before you draw down. If the exit slips, default interest applies and, in the worst case, the lender can enforce the caveat through the courts.

Is a caveat loan regulated like a home loan?

Generally no. It's for business or investment purposes, which sits outside the National Credit Code that protects consumer loans — so there are fewer of those protections, and commercial loans carry the lowest level of legal protection for borrowers. A business-purpose declaration is required, and the purpose has to be genuine, not just signed. It isn't suitable for personal or household borrowing.

Have a deal with a deadline?

Tell us the situation, the security and the timeline. We'll tell you honestly whether a caveat loan is the right tool — and if it is, move fast.

Discuss a deal →
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