A first mortgage (home loan) is very straightforward. The borrower receives approval from a lender, based on their credit history and income. If approved, they receive a loan which can be used to purchase a property, which also serves as the loan's security in the event of non-payment.
However, it’s common for property owners to also take out second mortgages on the same property. This is possible because every previous repayment they have made against the property pays down the principal, which increases borrower’s equity. Second mortgages are taken out against this existing equity.
The fundamental difference between second mortgages and caveat loans is that more than one mortgage issued against a single property. Mortgages are assigned a level of priority relative to when the mortgage was taken out. In the case of a default, a second mortgage can only be reckoned with after the first has been cleared.
With a caveat loan, the property in question may not be used as collateral for any other loan if the caveat loan is active. These restrictions make caveat loans easier to process and more desirable under certain circumstances. With no other loans competing for priority stake over a single property, the lender can release the full amount more quickly.
When you have a caveat loan, you can't sell your property or attempt to obtain further funding using your home as collateral.
Here is why we stand out:
A caveat loan is a wise financing choice for many business owners who require urgent funding. Compared to traditional business lending, our loans are fast and easy to approve (funding available as fast as 24 hours).
If you're considering taking charge of an immediate opportunity to expand your business or to pay urgent invoices, a caveat loan might just be your perfect solution.
Get pre-approved online in five minutes (24/7), obligation-free.
*Note: LVR approval depends on security, business, credit and other info provided. For weaker scenarios, maximum LVR would be lower. Please refer to contract/offer for more information.
A client urgently needed funding for his business. A bank had provided him with a caveat loan worth 50% of his property value, but was unwilling to lend more to him. Despite having sufficient equity on his property, he had little proven business profitability. The bank’s strict lending criteria meant that he was unable to obtain the caveat loan he needed to support his business.
Max Funding helped our client by offering him a caveat loan of $400,000 which was secured against his property over a 3-year period. The caveat loan provided the client with necessary access to capital so that he could fund his businesses and make necessary repayments once his business succeeds.
A client’s caveat loan was already on title. His caveat lender had a high-interest rate of 3% per month, and the caveat loan was due the following month with no extension available. Max Funding helped the client by re-financing at the caveat lender’s rate. We offered our client a lower rate of 1.5% per month over a longer period. As a result, he was in a better financial position, as was able to serve the caveat loan over 2 years.
Need money today? Our team understands that you need money fast, and we dedicate ourselves to have your caveat loan settled on the same day.
Our pre-approval process gives you an accurate indication of whether you're eligible for our caveat loans. Whether it is to purchase new equipment for your business, relieve cash flow issues or fund a start-up, Max Funding provides you with flexibility, fast responses and quick funding to ensure that best solution is found for your business.
Max Funding specialises in providing caveat loans to all business owners across Australia, regardless of business type and size. Banks and other lenders typically require more time to process caveat loan applications, and settling the funds. However, at Max Funding, our team of business specialists works closely together to help find a solution that solves your problems. That is why our application process is designed to be fast and efficient to ensure that finance is provided in a timely manner when you need it most.
If you’re an Australian property owner in need of a lightning-fast caveat loan approval, Max Funding can help. We offer specialised caveat loans that are secured against your property holdings to ensure that disbursement is fast, efficient and hassle-free.
Our loan solutions are specifically tailored to help suit any situation you might find yourself to be in. We are even bad credit accepting; our short-term caveat loans is a perfect solution to those requiring a caveat loan, but might not have the best credit record. Read on to learn more about how short-term caveat loans work, and feel free to get in touch if you have any questions.
With our user-friendly website interface, it's never been this easy to apply for a caveat loan online. To find out if you qualify,
Click "Get a Pre-Approval" to get started, and please don't hesitate to contact us if you have any questions.
At Max Funding, we’re keen to help Australian business owners achieve their financial goals – and we’ve found that caveat loans are one of our greatest resources. Borrowing from a mainstream bank is often more trouble than it’s worth. And that’s if your business can even get approved!
No matter the size of your organisation, as long as it owns the property, we are able to provide you with sufficient funding based upon the value of that property.
If you’ve already spent time going from one business loan provider to the next, only to find that their lending requirements are far too restrictive to be of any use, then you’ll appreciate just how straightforward our caveat loan application process is. Thanks to our no-credit-check caveat loans (for pre-approval), you can finally get your business moving in the right direction.
In need of an urgent answer? We got it! Max Funding understands that time is money, and we can give you a pre-approval decision on your caveat loan application in just five minutes.
To apply for a caveat loan, simply fill out our pre-approval application to see whether you’re eligible. After your application has been approved, verification is done and contract is signed , funds can be transferred to you as fast as 24 hours.
Max Funding allows some clients to borrow up to 100% of its Loan to Value Ratio (LVR)*, within just 24 hours. LVR is a percentage that is calculated by dividing the loan amount being borrowed to the value of the property that the applicant is using as security.
An early repayment charge is a fee imposed by the lender if a loan is paid off before the scheduled term date.
Here at Max Funding, we value ourselves in being transparent with our clients. With our services, there are no hidden fees, and all charges are clearly laid out. There are no early repayment charges, if you’re able to pay off your loan early, you’ll save interest instead!
Did the banks find something on your credit file? Don't worry! If you have a bad credit history and wish to apply for funding, we have the perfect solution to your problem. With our short-term caveat loans, we ensure that our repayment schedules are flexible and is tailored to your budget.
Max Funding caters its services to businesses of all sizes and believes in giving out second chances. Max Funding is more than happy to consider providing caveat loans to those with bad credit history, at a preferred structure that will best serve the business’s needs.
Max Funding can lend up to 100% of the property’s value.* Mortgaged amount, property type, business and other factors may affect approved LVR*. Please contact us for details.
The caveat lending amount is calculated based on the value of the property less all the mortgage owing, multiplied by a certain percentage. The percentage will depend on the final verification.
All contracts are prepared by the specialised legal team that has extensive experience in this field. The contract will cover areas such as the loan amount, interest rate and repayment terms.
We accept a whole range of properties including residential, commercial, industrial, land and farm. However, we don’t accept overseas properties.
Funding can be used for any business purposes such as start-up capital, invoice payments, equipment purchase and shop renovations. A caveat loan is suitable for any short term business purposes. See a comprehensive list of industries we’ve provided business loans to in the past and some customer stories here.
We have helped over 8,596 small Australian businesses with all types of business finance. A caveat loan is a preferred choice for clients that wishes to release equity from their property quickly to kick-start their business ideas or to resolve cash flow matters.
The average loan ranges from $10,000 to $500,000. We cater for loans up to $1 million.
Many clients have been knocked back by the banks and other financiers with their business loan applications.
Client can apply for a caveat loan with no financials, bad credit and receive the funds in as fast as 24 hours.
*LVR approval depends on security, business, credit and other info provided. For weaker scenarios, maximum LVR would be lower. Please refer to contract/offer for more information.