What’s the main requirement for Caveat & Second Mortgage loans?
All caveat and
second mortgage loans rely on the ‘exit strategy’, this means, how are you paying back the
debt? As long as this is strong, for example; If you have sold a property and can clear the debt from that, then you have a very strong exit
strategy. Or you may have a big invoice coming due and need cash flow till then.
How long do these types of loans take?
Normally 2- 5 business days. Sometimes if they are extremely urgent they can be done the same day.
What sort of documents do the lenders want?
Normally caveat and
second mortgage loans will lend
around 70-80% of the properties value. The majority of
the time a valuation won't even be needed, nor is income proof. The loans rely on the ‘exit strategy’.
For what purpose can I use the money?
Any and all worthwhile business or non-residential investment purpose.
What type of properties can be used for the Caveat or Second Mortgages?
Either residential properties or commercial properties. All real estate within Australia will be considered.
What sort of loan terms are available?
Some Second Mortgages will go for 12 months. Most
urgent Second Mortgages attract 1 – 6 months terms.
What if I have bad credit or don’t have any current financials?
Caveat Finance has such a large array of products that this is usually not a problem, once again it depends on the ‘exit strategy’.
Commonly used terminology
within the mortgage market
LVR - Loan to valuation ratio - How much will the lender
lend against your properties value on a percentage basis
Accountants Letter - Refer to a letter from your
accountant confirming your ability to afford the loan in some
way, most lenders have slight variations to a standard form
Bad Credit - Refers to an individual or entity that has a
poor Credit Report or has difficulty repaying debt in the past
Caveat - Caveat is a form of encumbrance on title
CRAA - Refers to your Credit Report/Credit File
Default - Non performance on a loan, you will be in
Default/Judgement - Past non payment issues have resulted
in a creditor listing a Default or Judgement on your Credit File
Exit/Exit Strategy - How will you pay back the loan
Low Doc - For the self employed who cannot prove
sufficient income on their current tax returns for an array of
reasons may choose a low doc loan
Mortgage - The most common form of encumbrance on title
NCCPA 2009 - National Consumer Credit Protection Act
2009, regulated by ASIC came into law in July 2010 and governs
all Consumer 'Regulated' loans
Non Regulated - Refers to a loan not regulated or
'caught' under the NCCPA 2009
PA - Per Annum - applies to interest calculated at a
annual rate as apposed to monthly
PCM - Per Calender Month - applies to interest calculated
at a monthly rate as apposed to annually
Private Loan/Lender - Smaller lending groups, using
individual/private investors/debt funders to lender money to
borrowers, usually with a solicitor involved to do the legal
Second Mortgage - Subsequent to the first mortgage,
literally on the properties title
Security - Referring to the property the lender will be
able to secure for their debt be-it a house, car, boat etc
Valuation - A certified valuation company undertakes a
valuation of your property to determine a fair market value
Settlement - When the loan finalises and the money is
distributed from the lender
Caveat Finance may have the solution to solve your financial problem. Give us a call or email us your enquiry now! Why wait? Your problem may
be one phone call away from being solved!
Caveat Finance - 1300 737 426!!