Video · 0:31

What is a caveat loan? The thirty-second version

0:31 · Posted 31 October 2026 on the HomeSec YouTube channel

What a caveat loan is in half a minute: business lending secured by a caveat on the title of property you already own rather than a new registered mortgage, why it can be set up quickly, and why it needs a clear way out.

In short

A caveat loan is business lending secured by a caveat lodged on the title of property you already own, instead of a new registered mortgage.
Because nothing new has to be registered, it is usually the quickest form of property security to put in place.
It suits a need with a date on it, such as an ATO bill, a settlement, or a deal that will not wait.
HomeSec writes caveat loans over Victorian property. In every other state the same loan settles on a registered second mortgage.

What the video covers

The recording answers the question in the order people ask it: what a caveat loan is, why it is quick, what it is used for, and the one thing to settle before signing. It is the short version of a subject that has a long legal tail, and it is honest about the part that matters most, which is the way out.

Why a caveat can be faster than a mortgage

A registered mortgage has to be prepared, signed and lodged with the land titles office, and a second mortgage usually waits on the first lender's consent as well. A caveat is a notice on the title. It protects the lender's interest from the day it is lodged and nothing has to be registered behind the existing loan. On a file where the deadline is the problem, that difference in paperwork is often the difference between funding this week and funding next month.

Speed still depends on the file. A clean title, an accurate figure for what is already owed and everyone on the title able to sign are what make a caveat loan fast. With those in place, funding is possible in as little as 24 hours from a clean, complete scenario.

When a caveat is the right tool, and when it is not

Right: a fixed date and a clear exit, such as an ATO deadline, a settlement, a supplier who wants paying before the next delivery, or a stock deal with a short window.
Right: property in Victoria with equity behind the existing loan, where the first lender's consent would take longer than the deadline allows.
Not right: a cash shortfall with no end in sight. A loan secured on property needs a way to be repaid; without one, borrowing only moves the problem.
Not right: property outside Victoria. The same loan is written on a registered second mortgage instead.

The way out

The recording closes on the exit for a reason. The usual ones are the sale of an asset, a payment that is already on its way (a contract, a progress claim, a tax refund), or a refinance once a bank is ready. The term is open: there is no minimum term, no maximum term, no fee to extend and no penalty for repaying early. The exit strategy video takes that part further.

What the video means, in our published terms

Funding time. Funds can be released in as little as 24 hours from a clean, complete scenario. Timing depends on the file, the title and settlement requirements, and is not guaranteed.
Six months. Interest can be capitalised for up to 6 months, so there are no scheduled repayments in that period. Interest is not waived: it accrues and is added to the loan.
Extensions. An extension is assessed and agreed in writing before it applies. There is no fee to extend.
Approval. Every loan is subject to assessment and approval, real estate security, fees and an acceptable repayment or exit strategy. Owning property does not by itself mean your loan will be approved.
Purpose and size. $20,000 to $5,000,000, for business and investment purposes only. Credit provided for those purposes is not regulated under the National Consumer Credit Protection Act 2009 (the NCCP Act), and the protections available to consumer borrowers do not apply.

Read the transcript

What's a caveat loan? Here it is in 30 seconds. It's a short-term business loan secured by a caveat on the title of property you own. Because there's no new mortgage to register, it can often be set up faster. Owners use it for urgent needs, an ATO bill, a settlement, or a deal that won't wait. Keep it short-term with a clear way out. HomeSec lends from 20,000 to 5 million dollars. HomeSec Business Finance, Australia's fastest and most flexible business loans.

Transcribed from the recording's own captions, with the brand name's spelling corrected. HomeSec's terms are open: the published terms above are what apply to a loan.

Questions people ask next

Is a caveat loan the same as a second mortgage?

No. A second mortgage is registered on the title behind the existing loan. A caveat is a notice lodged on the title that protects the lender's interest without a mortgage being registered. They do a similar job, and the difference shows up mainly in how quickly each can be put in place and what the first lender has to agree to. The full guide sets the two side by side.

Does my bank have to agree to a caveat?

A caveat does not need the first mortgagee's consent the way a registered second mortgage usually does. It is a public entry on the title, though, so it is worth reading your existing loan documents for any clause about further encumbrances. We raise it with you if the structure suggests it matters.

Can I get a caveat loan if my property is outside Victoria?

HomeSec writes caveat loans over Victorian property only. If the property is in another state or territory, we lend on a registered second mortgage instead, also with no valuation. Second mortgage with no valuation explains how that works.

The full guide

The video is the short version. The written guide has the detail: what a caveat loan is, and what the law requires of one.

To talk it through about your own property, ring a Lending Manager on 1300 93 83 87, Mon–Fri, 8:30am – 5:30pm Melbourne time.