Caveat loan cost calculator
Estimate total cost, effective annualised rate and day-one cash to you on a caveat loan.
Estimated results
What these figures mean.
Caveat loans are short-term and priced monthly rather than annually, and the true cost sits in three places: the monthly interest itself, an establishment fee taken at settlement, and legal and valuation costs the lender passes on. Enter the amount you need, the number of months you expect to hold the facility, the lender's monthly rate, the establishment fee as a percentage of the loan, and an allowance for legal and valuation costs.
The calculator adds these together for a total cost, then expresses that as an effective annualised rate so it is comparable with facilities priced per annum — caveat loans generally carry a rate premium over a first mortgage because the lender is registering a caveat rather than a first-ranking mortgage, and because the term is typically measured in weeks or a few months rather than years. Day-one cash is what actually reaches you once the establishment fee and the legal/valuation allowance are deducted from the facility amount. These figures are indicative only: pricing across our panel — banks, private lenders, non-bank lenders and specialist funds — varies with security, LVR, credit history and how quickly funds are needed. Business-purpose and investment-purpose caveat loans only.
Caveat loans — questions we are asked.
How fast can a caveat loan settle?
Typically within a few business days once security and identity documents are in, which is the main reason caveat loans carry a rate premium over slower, first-ranking facilities.
Is the monthly rate the same as the annualised rate?
No — fees change the true cost of a caveat loan more than a monthly rate alone suggests, which is why this calculator also shows an effective annualised figure for comparison.
What security does a caveat loan use?
A caveat lodged against real property, typically behind an existing first mortgage. The lender’s ranking and the property’s equity both affect what is available.
Can I repay a caveat loan early?
Most caveat facilities allow early repayment, though some carry a minimum interest period. Confirm the specific terms with the lender once a facility is assessed for your scenario.