What caveat loans cost in Australia: rates and fees

Caveat lenders publish rates from 0.77% to 1.75% a month. On $100,000 held for 3 months that is $2,310 to $5,250 of interest, and with establishment and legal fees the total can reach $7,250 or more. Most lenders do not publish their fees, so the total cost depends on the quote.

Caveat loans are priced by the month, so the rate looks small and the bill does not. A lender can advertise 0.77% a month and still charge an establishment fee, legal costs and a higher rate if the loan runs past expiry. This guide reads nine caveat lenders' own pages for what they actually publish, works the total cost of a $100,000 loan held for 3 months and for 6 months, and shows where a second mortgage becomes the cheaper option. It is for business purpose borrowing only. The how-it-works part is in our caveat loans explained guide.

What lenders publish for caveat loan rates

Caveat lenders publish a monthly rate and then very little else. This table is built only from each lender's own page, read on 29 October 2026. Where a page gives no figure it says not published, and where a page contradicts itself we say so. Figures are indicative market data, not Ventas offers. Our caveat loans explained guide covers how the product works, so this page sticks to prices.

Three things stand out. First, the lowest advertised rates are 0.77% and 0.79% a month, which is about 9.2% to 9.5% a year simple (our arithmetic). Finder, a comparison site, describes typical pricing as 1% to 2% a month and its page was last updated on 16 September 2026. Second, no lender here publishes an establishment fee amount, a minimum interest period or a default rate. Third, the headline LVR is a ceiling for the best security, and several pages disagree with themselves between 90% and 100%. Secured Lending is the only page that states an annual rate, from 9.7% a year, but only on loans from $250,000. Two broker pages we also read price higher: Aurelius Private (a private lending broker, not a lender) says typically from around 1.5% a month for 1 to 6 months, and Liquidlend (a broker) shows 1.25% in one place and 1.5% in another.

Fees on top of the monthly rate

Because lenders do not publish fee amounts, we can only point to the one non-lender estimate we found. Feasly, a property feasibility software company, puts the establishment or line fee at commonly about 2% to 5% of the loan and legal and documentation costs at about $1,500 to $3,500, higher on commercial security. Treat those as a planning range, not a quote. Diverse Funding and Universal Finance both advertise no upfront fees, so the cost may sit in the rate or in exit charges instead.

• Establishment fee. Charged on the loan amount, so it is the same whether you hold the money for three weeks or six months. That is why short holds look so expensive as a yearly rate.
• Legal and valuation. Several pages say most loans need no valuation. Innovate Funding lists legal and valuation costs as items to check.
• Discharge and exit. Innovate Funding names discharge charges. Max Funding says it charges no early repayment fees. Ask for the exit cost in writing.
• Minimum interest period. Innovate Funding says minimum interest periods may apply and gives no length. If you repay in a week, you may still owe a month or more.
• Default rate. No page here publishes one. Universal Finance mentions high default interest on an expired facility without a number. Ask what the rate is the day after expiry, and how long the lender will extend.

What $100,000 costs over 3 and 6 months

This is our arithmetic using published monthly rates and the fee planning range above. Interest is simple, charged on the full $100,000 each month with no part repayments. Each scenario is a plausible case, not any one lender's quote.

The low case needs a lender with a 0.77% rate and no fees, which is for strong, low-LVR residential security. The middle case is a sensible planning figure. The yearly figure falls as the hold gets longer because the fixed fees spread out, but the monthly rate keeps running. At 3 months the middle case costs $7,250, or 7.25% of the loan.

When a second mortgage becomes cheaper

A second mortgage takes longer to arrange and has higher fixed costs, because it needs a registered mortgage, a valuation and often the first lender's consent. In exchange the monthly rate is usually lower and the term can run to 24 months or more. We could not find a non-bank lender that publishes a second mortgage rate, so the table below uses assumed rates to show the logic. It is not a rate for any lender.

The break-even is simple: extra fixed cost divided by monthly saving. If the money is needed for 2 or 3 months, a caveat loan is usually the cheaper route even at a higher rate. If the repayment depends on a sale or refinance that could slip past 4 to 8 months, price the second mortgage as well. Ask for both costs over your own timeline, including a delay of 2 months.

Business purpose only

This page covers loans for a business purpose. ASIC says the test is whether the advance is predominantly for personal, domestic or household purposes, meaning more than a 50% consumer component. If it is, the loan is regulated consumer credit and this page does not cover it. Loans to companies fall outside the consumer credit legislation, and a loan to an individual for business purposes is assessed on its actual use. Lenders take a signed business purpose declaration when the security is a home, but the declaration has to match what the money is actually used for. Borrowing for personal use is a different product with different protections.

Who borrows and what makes a deal fundable

Caveat loans suit owners who need funds within days for an ATO payment, a settlement shortfall, a deposit or stock, and who will repay from a sale or a refinance. Lenders are willing to move quickly, but not on any deal. What makes one fundable:

• Equity. Several pages cap the loan at 70% to 80% of value, including what is already owed. Commercial security often gets a lower cap.
• A defined exit. A signed sale contract, an approved refinance or a settlement date. Lenders decline vague exits.
• Clean title. No other caveats or disputes on the property.
• A business purpose you can evidence. An invoice, an ATO payment notice or a contract.

Speed claims are conditional. Innovate Funding states that settlement takes longer and no date is promised, and Vivian Locke aims for a letter of offer in 24 hours, with most loans settling within 48 hours of acceptance. On the legal side, NSW Land Registry Services describes a caveat as a statutory injunction recording a claim to an interest in land, says only those claiming an eligible interest can lodge one, and says a caveat lodged without reasonable cause can leave the caveator liable for compensation. A caveat in NSW also lapses 21 days after a lapsing notice is served unless the caveator lodges a Supreme Court order extending it. Titles Queensland's manual says a caveat lodged by the registered owner, or with the owner's consent, does not lapse under section 126 of the Land Title Act 1994, which is how a borrower-consented caveat loan can sit on title. Rules differ by state, so ask your lawyer. Our questions page on how fast a caveat loan can settle covers the timing, and can I get a caveat loan for my business covers eligibility.

Financing a caveat loan or second mortgage

Ventas is a finance broker, not a lender. We do not set these rates, and the rates above are what lenders advertise, not what we will arrange for you. The lender you end up with sets the rate after looking at the property, the equity, the exit and the purpose. Pricing from a private lender and from a non-bank second mortgage lender can differ by a wide margin for the same property, so we ask for both when the timeline allows. Our property-backed lending page covers first and second mortgage options.

Illustrative only, subject to lender assessment. A $100,000 caveat loan held for 3 months, using assumed figures from the tables above:

And how it might be structured across the two property-backed options:

The caveat loan is the fastest cash but the dearest per month. The second mortgage costs less if the hold runs long. Either way, your property is at risk if the exit fails, so the exit is the thing a lender will test hardest. To get a number from Ventas, send the property address and estimated value, what is owed on it, the amount, the date you need it, what the money is for, and how you will repay it. Finance is subject to lender assessment and approval.

This is general information only and not financial, credit, or tax advice. Figures are indicative market data from the sources listed, not Ventas offers, and move with the market. Consider your own circumstances and speak to a professional. All finance is subject to lender assessment and approval.

This article is general information only and not financial, credit, or tax advice. Ventas Asset Lending is a finance broker, not a lender. Approvals are subject to lender assessment. Consider your own circumstances and speak to a qualified professional, including your accountant for any tax questions.