Fast Caveat Loans

A caveat loan is a type of loan secured against the title of your property by caveat. They are a lot simpler and faster to set up and approve than other property loans, such as mortgages or second mortgages.

In terms of priority, any first or second mortgage will take priority over the caveat.

Settlement Advances are similar to caveat loans and can be approved and set up very quickly, in some cases on the same day or within 24 hours of application.

Caveat loans are useful in releasing the equity you have in your property quickly and usually for short term needs.

When you are considering selling or are in the process of selling your home or property, then Settlement Advances, vendor paid advertising advances are also a good option to consider, as repayment can aligned with the eventual sale of your property - or 60 day period. If you have an unconditional offer on your property or have recently sold your property, then our settlement advances are a good option to consider.

Some common use cases are listed below:

Via our vendor paid advertising advances:

• Home renovation costs before listing the property for sale
• Home and garden repairs and maintenance pre-sale
• Home advertising costs to list the property

Via our settlement advances

• Deposits on new properties
• Bidding for properties at auction
• Purchase a new property

While caveat loans are a faster solution than traditional bridging loans from the banks, they often take longer than 24 hours for the loan to be set up and the funds released to the borrower.

A faster short term solution would be a settlement advance with us, which can be used only when you intend to or are currently selling your existing property. We have provided funds to borrowers on the same day of application, when the funds have been needed in an emergency, such as bidding on a new property at auction. If the funds are urgently needed, we will need some documentation from you, to ensure the process goes smoothly.

Examples of documentation required:

• Contract of Sale - (if applicable) for the property you are selling or advancing against
• Mortgage Statement - PDF document issued by your mortgage provider
• Solicitor or Conveyancer - (if already arranged) their name, company and contact details
• Identity Verification - A clear, colour photo of the front and back of your Driver's Licence

While second mortgages are often faster to set up than first mortgages, a faster solution would be a pre-settlement advance, which can be approved on the same day you apply and funding often within 24 hours to 48 hours, when needed fast.

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The Settlement Advances application is fast, and should only take a few minutes.

We do not ask any unnecessary questions, and only need your contact details, the property selling or sold, the purpose and amount of the advance and how much and how long you need it for. This allows us to understand your needs and what is required from you, in order to make sure you have the right product, to answer any questions you may have and to help you complete your advance with us, as quickly as possible.

The amount you will be able to secure by caveat will depend on the equity available to you, in your property. With Settlement Advances, we can advance up to 80% of your available equity¹.

This will be dependent on the amount you borrow and how long it is needed for. See the Repayment Costs Chart for some examples.

Also see our Costs and Charges page for our loan calculator.

These will depend on the status of your property and whether you are preparing to sell, or have an unconditional offer on the property. See some common documents we require, as below:

• Contract of Sale - (if applicable) for the property you are selling or advancing against
• Mortgage Statement - PDF document issued by your mortgage provider
• Solicitor or Conveyancer - (if already arranged) their name, company and contact details
• Identity Verification - A clear, colour photo of the front and back of your Driver's Licence

SettlementAdvances.com.au works a little differently than bridging or caveat loans and we do not require any property appraisal, which would slow down the approval and funding process.

• For pre-sale preparations, we can generally lend up to $50,000 (in some cases) for repairs and property advertising and listing costs
• From unconditional offer to settlement, we can lend up to your available equity in your property¹

Caveat loans generally have to be repaid in full, before the caveat is removed from the property title, for the property to sell, so they may not be the best solution in this situation. Settlement advances are set up to help in this situation. They can allow you to purchase a new property, before your current home sells, which are then repaid in full, when your current property finally sells.

Also see our relocation home loans page for more details.

This will depend on a careful look at your financial situation and needs. To help simplify the question, it is possible to both sell and buy, at the same time.

Settlement advances offer a solution, allowing you to purchase a new property, when your current property has an unconditional offer, but may take weeks for that to proceed through to settlement.

During the waiting time, you may find a new property that you would like to put down a deposit on or purchase outright. In these situations, a settlement advance can give you quick access to the cash you need, in order to make the offer and purchase the property.