# How to Get a Caveat Loan with 24-Hour Approval in Australia
When you need funding urgently, caveat loans offer the fastest path to capital in Australia. Here's everything you need to know about securing a caveat loan within 24 hours.
## What is a Caveat Loan?
A caveat loan is a short-term loan secured by placing a caveat (legal notice) on a property you own. This gives the lender security interest without requiring a formal mortgage registration, which dramatically speeds up the approval and funding process.
## Why Caveat Loans Are So Fast
Traditional mortgages can take weeks due to:
- Extensive credit checks
- Income verification
- Formal mortgage registration (2-3 weeks alone)
- Multiple valuation requirements
Caveat loans bypass most of this by:
- Focusing on property equity, not credit score
- Minimal documentation requirements
- No formal mortgage registration delay
- Quick property valuation (often desktop or drive-by)
In most cases, you can be approved within hours and funded the same or next business day.
## Who Uses Caveat Loans?
Common scenarios include:
- **Business owners**: Urgent cash flow needs, equipment purchases, or opportunity investments
- **Property investors**: Auction deposits, settlement shortfalls, or quick renovations
- **Developers**: Time-sensitive land purchases or holding costs
- **Individuals**: Emergency expenses, debt consolidation, or urgent legal matters
## Requirements for 24-Hour Approval
To qualify for fast approval, you'll need:
1. **Unencumbered Property Equity**: Available equity in property you own (typically need 50-65% LVR)
2. **Clear Title**: Property must have clear or minimal encumbrances
3. **Valid ID**: Driver's license or passport
4. **Property Evidence**: Recent rates notice or title deed
5. **Clear Purpose**: Legitimate use of funds
6. **Exit Strategy**: How you'll repay (sale, refinance, income, etc.)
## The 24-Hour Process
**Hour 1-2: Application**
- Submit online or call lender
- Provide basic details and property information
- Initial assessment of equity position
**Hour 3-6: Valuation**
- Lender arranges quick property valuation
- Often desktop or drive-by for speed
- Confirms available equity
**Hour 6-12: Approval**
- Loan terms offered
- Agreement prepared and sent
- You review and sign documents
**Hour 12-24: Settlement**
- Caveat lodged on property title
- Funds transferred to your account
- Loan active, interest begins
## Costs to Expect
Caveat loans are more expensive than traditional loans due to speed and convenience:
**Interest Rates**: 2-4% per month (24-48% per annum)
**Example**: $100,000 loan at 2.5% monthly = $2,500 per month interest-only
**Fees**:
- Application fee: $500-$1,500
- Valuation: $200-$800
- Legal/caveat lodgement: $500-$1,000
- Monthly service fee: $0-$200
**Total cost for 3-month $100,000 loan:**
- Interest: $7,500
- Fees: ~$2,500
- **Total**: ~$10,000 (10% of loan amount)
While expensive, the speed can save deals or prevent much larger losses.
## Maximum Loan Amounts
Typical caveat loan ranges:
- Minimum: $50,000
- Maximum: $5 million+
- Sweet spot: $100,000-$500,000
LVR (Loan to Value Ratio):
- First mortgage: Up to 65% of property value
- Second mortgage: Up to 80% combined LVR
## Red Flags to Avoid
Not all caveat lenders are equal. Avoid:
- Lenders requiring upfront fees before approval
- Unclear fee structures
- No proper loan agreement
- Pushy sales tactics
- Rates above 5% per month (very high even for caveat loans)
## Real Example: Business Owner Success Story
*Sarah, Sydney cafe owner, needed $80,000 urgently when her supplier offered a 48-hour-only discount on equipment worth $120,000 - a $40,000 saving.*
- **Monday 9am**: Applied with property equity of $300,000
- **Monday 2pm**: Approved for $80,000 at 2.8% monthly
- **Tuesday 10am**: Funds in account, purchased equipment
Total cost over 6 months: $13,440 interest + $2,000 fees = $15,440
Savings from equipment discount: $40,000
**Net benefit**: $24,560
## When NOT to Use Caveat Loans
Avoid caveat loans if:
- You have time to get traditional finance (cheaper)
- You can't afford the interest costs
- You don't have a clear exit strategy
- The deal isn't genuinely urgent or valuable
- You're using it to delay inevitable financial problems
## Exit Strategies That Work
Lenders want to see realistic repayment plans:
**Option 1: Property Sale**
"I'm selling investment property, settlement in 90 days"
**Option 2: Refinance**
"Need 6 months to improve credit, then refinance to bank"
**Option 3: Business Income**
"Contract payments due in 60 days will clear loan"
**Option 4: Another Property Sale**
"Primary residence selling, using caveat loan on investment property to bridge gap"
## How to Apply Through Introducr
1. Visit our [Quick Connect page](/connect)
2. Select "Caveat Loan" as loan type
3. Indicate "Urgent (within 1 week)" timeline
4. Provide property and loan details
5. We'll match you with lenders who can deliver 24-hour approvals
Most borrowers receive lender responses within 2-4 hours of submission.
## FAQs
**Can I get a caveat loan with bad credit?**
Yes. Caveat lenders focus primarily on property equity, not credit score. However, very poor credit or bankruptcy may still require explanation.
**Do I need to own the property outright?**
No. You can have an existing mortgage, as long as there's sufficient equity available. Lenders typically require 35-50% available equity on top of existing debt.
**How do I repay a caveat loan?**
Most are interest-only with principal due at term end (typically 3-12 months). You can often repay early without penalty.
**What if I can't repay on time?**
Many lenders will extend for additional interest and fees, but this should be negotiated before the due date. Failure to repay can result in property enforcement.
## Next Steps
If you need urgent funding and have property equity:
1. **Calculate your equity**: Property value minus existing loans
2. **Determine amount needed**: Be specific
3. **Have your exit strategy ready**: How will you repay?
4. **[Connect with caveat lenders now](/connect)**: Get responses within hours
Time is money in urgent situations. The faster you move, the more options you'll have.
**Ready to explore caveat loan options?** [Get started now](/connect) or [view our caveat loans guide](/loan-types/caveat-loans).