Fast, Urgent Short-Term Funding Secured by Property
Get urgent short-term funding with caveat loans. Approved in 24 hours with urgent settlement available. Perfect for time-critical situations.
At a Glance
Overview
A caveat loan is the fastest form of property-secured funding available to an Australian business owner or investor. Instead of registering a mortgage, the lender lodges a caveat on the title of a property you own. Because that step does not need your existing bank’s consent, a caveat facility can be put in place on a timeline no registered mortgage can match.
NWF Capital is a private lender writing caveat loans across every state and territory. Applications are assessed the day they arrive by the people who make the credit decision, you have an answer within 24 hours, and urgent settlements are accommodated when a deadline genuinely requires it.
Caveat loans are not the cheapest money available, and they are not the right tool for every situation. They exist for one job: getting capital in place quickly when the cost of waiting is greater than the cost of the loan. The rest of this page explains how they work, what they cost, who they suit, and when another structure would serve you better.
How It Works
A caveat is a notice lodged with the state land titles office recording that a third party — the lender — has an interest in the property. While the caveat is on title, the property cannot be sold, refinanced or further encumbered without the lender being notified, which protects the lender’s position until the loan is repaid.
Your existing mortgage stays exactly where it is. Your bank remains in first position on the same terms, and the caveat sits behind it. When the caveat loan is repaid, the caveat is withdrawn and the title returns to its previous state.
Caveat facilities are short by design — typically one to six months — with interest usually capitalised so there are no repayments during the term. The loan is repaid in full from a defined exit: the sale of a property, a refinance, a receivable landing, or another cash event.
Speed
Most delay in property lending comes from waiting on someone else — usually the bank holding the first mortgage. A caveat removes that dependency. Once we have the property details, the amount, the purpose and the exit, we can issue a decision within 24 hours.
Settlement speed then depends on the security, the documentation and your solicitor. Where a deadline is hard — an ATO enforcement date, a creditor demand, a failed settlement, a contract with a fixed completion date — tell us the date up front and we will structure the file around it.
The fastest applications are the ones that disclose everything at the start. Arrears, tax debt, disputes and existing caveats are all workable when raised on day one, and they are the most common cause of delay when they surface at settlement.
Process
Send the property, the amount, the purpose and the exit — by phone, the online form, or through your broker.
We assess the equity and the exit and give you an answer within 24 hours.
You receive a letter of offer setting out every rate, fee and condition before you commit.
Loan documents are signed and the caveat is prepared for lodgement on the property title.
Funds settle and the caveat is lodged. When the loan is repaid, the caveat is withdrawn.
Use Cases
Caveat funding earns its cost in situations with a hard deadline and a real financial consequence for missing it. The most common reasons business owners use caveat loans are:
ATO tax debt — clearing arrears or a defaulting payment arrangement before enforcement escalates. Creditor and supplier deadlines — meeting an obligation that cannot move. Failed settlements — completing a purchase when other finance has fallen through late. Time-boxed opportunities — stock, equipment or a contract available for a limited window. Stopping enforcement — holding off action by an existing lender while a longer-term refinance is arranged.
Where the deadline is softer or the amount is larger, a second mortgage or bridging loan will usually do the same job on a longer runway at a lower cost. We will tell you if that is the case.
Cost
Caveat loans are priced above registered first and second mortgages. That reflects two things: the security position is weaker than a registered mortgage, and the term is short, so establishment costs are spread across fewer months.
Pricing on any individual facility depends on the loan-to-value ratio, the type and location of the property, the term, and the strength of the exit. A low-LVR facility over well-located property with a contracted exit is priced very differently from a high-LVR facility with an uncertain one.
The right comparison is not caveat rate against bank rate — a bank is not an option on most urgent files. It is the cost of the caveat loan against the cost of the deadline being missed. Every rate and fee is disclosed in full in your letter of offer before you sign anything.
Eligibility
Caveat loans suit business owners, investors and companies who own property with real equity and need capital faster than a bank can provide it. Security can be residential, commercial, industrial, rural or vacant land, held personally, through a company, or in a trust.
Credit history is considered but it is not the deciding factor. Borrowers with defaults, judgments, arrears or outstanding ATO debt are funded regularly, because the assessment is anchored to the property and the exit rather than to a credit score.
Caveat loans from NWF Capital are for business and investment purposes only. We do not provide consumer credit, so we cannot fund caveat loans for personal or household use.
Alternatives
These three products are often confused. A caveat loan is the fastest, secured by caveat rather than registered mortgage, and suits short, urgent needs. A second mortgage is registered on title behind your bank, supports larger amounts and longer terms, and usually costs less — but generally needs the first mortgagee’s consent. A bridging loan is built around a gap between two property transactions, typically buying before you sell.
Our guide Caveat Loans vs Bridging Finance goes through the differences in detail, including the most expensive mistake borrowers make when choosing between them.
Brokers
A large share of our caveat lending is introduced by finance brokers placing files that banks cannot settle in time. Brokers deal directly with the decision-makers, get a straight answer on appetite and indicative terms within 24 hours, and keep ownership of the client relationship.
A strong caveat submission fits on a page: the security and its estimated value, existing debt, the amount, the purpose, and a dated exit. Our broker guide covers what speeds a deal up and what stalls it.
FAQ
A caveat loan is short-term finance secured by a caveat lodged on the title of a property you own. The caveat records the lender’s interest and prevents the property being sold or refinanced without the lender being notified, which gives the lender security without a registered mortgage.
Speed is the reason caveat loans exist. NWF Capital issues a decision within 24 hours of receiving a complete application, and because a caveat does not need your existing lender’s consent, urgent settlements can be accommodated where a deadline requires it.
A registered second mortgage generally needs the first mortgagee’s consent, and that depends on a bank’s internal timeframes. A caveat does not require that consent, which removes the most common source of delay.
We need to be satisfied of the property’s value before funding any facility. How value is established depends on the loan amount, the loan-to-value ratio and the property itself, and we confirm exactly what is required at assessment so it does not hold up an urgent settlement.
The amount depends on the equity available above any existing debt on the property. Caveat facilities are generally smaller and shorter than registered mortgage facilities; where a larger amount or a longer term is needed, a registered second mortgage is usually the better structure.
Typically one to six months. Caveat funding is designed as a short-term solution with a clear exit, and the term should match a realistic repayment date with a sensible buffer.
Usually not. Interest is generally capitalised into the facility and repaid in full at the end of the term from your exit, so there is no monthly outflow while the loan is running.
Yes. Defaults, judgments, arrears and outstanding tax debt do not automatically disqualify an application. The assessment is anchored to the equity in the property and the credibility of your exit, not to your credit score.
No. NWF Capital provides caveat loans for business and investment purposes only — such as working capital, tax liabilities, business opportunities and property transactions. We do not provide consumer credit, including caveat loans for personal or household use.
Caveat loans are priced above registered first and second mortgages because the security position is weaker and the term is short. Pricing depends on the loan-to-value ratio, the property, the term and the exit. Every rate and fee is set out in full in your letter of offer before you commit.
No. Your existing lender remains in first position, your current loan terms are unchanged, and your bank is repaid first if the property is sold.
Yes. A large share of our caveat lending comes through finance brokers. Brokers deal directly with the decision-makers, receive a straight answer within 24 hours, and keep ownership of the client relationship.
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