Caveat loan to complete a settlement in 48 hours

The situation

The following is an anonymised composite illustrating a recurring pattern, not a specific settled deal. A purchaser is two days from settling on a commercial property when the sale of another asset they were relying on for part of the settlement funds is unexpectedly delayed. Without the shortfall covered, they risk losing their deposit and the property under the contract's default provisions.

Why it's hard

There is no time left for a standard mortgage process, a bank valuation cycle, or any facility that requires the consent of an existing mortgagee if the shortfall is to be raised against other property the purchaser already holds. The only realistic options are ones that can genuinely settle inside the remaining window.

How it can be structured

A caveat loan against equity in another property the purchaser owns is the standard response, lodged without needing an existing mortgagee's consent and typically funded in one to three business days from a complete file, sometimes faster where a title search and short-form valuation can be turned around same day; the exit is usually a planned refinance or the sale proceeds from the original delayed asset once it eventually settles. Where the purchaser has no separate property to secure against, a caveat over the property being purchased itself, ranking behind the incoming mortgage, is occasionally structured instead, though this depends on the incoming lender's willingness to accommodate it. In genuinely extreme timeframes, a private lender with an existing relationship or prior dealings with the borrower can sometimes move faster than a first-time approach would allow, which is part of why speaking to a broker with established private lender relationships matters most in exactly this scenario.

Speed in a scenario this tight depends heavily on how quickly a title search and an indicative valuation can be completed, and purchasers should have basic details ready before the first call, including the property's address, an estimate of its value, and confirmation of any existing mortgage, since gathering this information from scratch during the process itself can consume hours that simply are not available. Lenders able to move this fast typically rely on a desktop or drive-by valuation rather than a full physical inspection, and purchasers should understand this trades some precision in the valuation for the speed the situation demands. Where the purchaser's conveyancer has not yet been engaged on the caveat loan side of the transaction, involving them immediately, alongside whoever is already acting on the settlement itself, avoids duplicated effort and keeps both processes moving in parallel rather than sequentially. Because pricing on a facility this urgent reflects the compressed timeframe rather than a standard commercial rate, purchasers should treat the cost as the price of certainty on settlement day, not as representative of what a less time-pressured facility would cost.

What it typically costs

Pricing on a facility arranged this quickly reflects the compressed timeframe and light documentation, quoted on enquiry once a lender has reviewed the title and the exit. An establishment fee is standard, and borrowers should expect this to be among the higher-priced products in the category, reflecting the genuine urgency being solved for.

Timeline

1. Hour 1 — scoping call to confirm available security, the shortfall amount and the settlement deadline.
2. Hour 1–4 — title search and indicative terms.
3. Day 1 — credit approval and loan offer.
4. Day 1–2 — caveat lodgement and funds released ahead of settlement.

Questions we'd ask you

1. What property or asset can be used as security, and is there an existing mortgage over it?
2. Exactly how many hours or days remain before the settlement deadline?
3. What caused the shortfall, and when do you expect the original funding source to resolve?
4. Has your conveyancer or solicitor confirmed the settlement can still proceed if funds arrive within the window?
5. What is the planned exit once the caveat loan is in place — refinance, or the delayed sale settling?

Related

Caveat loans · Short-term business loans · Caveat · Settlement