Caveat & Second Mortgage

What is a Caveat Loan?


In general terms, a caveat is a notice lodged by a party with an interest in a property or land. It protects the property from being dealt with until the caveat is removed.


A caveat loan is a secured form of business lending that requires you to use your property as security against the loan. After you enter into a loan agreement with a lender, the lender will lodge a caveat over your property. That means you may not be able to use the property as collateral elsewhere or sell it until your loan has been paid off. A caveat loan can be a good short-term finance option for your business if you are struggling to secure other funding opportunities.


What Is a Second Mortgage?


As the name suggests, a Second Mortgage is a type of subordinate mortgage that uses your home as collateral while an original mortgage is still in effect. The amount that a homeowner can borrow varies and depends mostly on the home equity, which is the difference between the market value of the home and any remaining mortgage payments. A second mortgage can be used to help businesses get over a rough patch or achieve a specific financial goal without having to sell the property.

Key points:

Caveat Loans up to $100K.

Second Mortgages up to $250K.

Terms 3-60 months.

Interest rates are from 10.95% to 22.95%.

Flexible repayment structures to suit your cashflow, including interest-only and principal plus interest options.

Our team at Max Insurances can provide competitive house insurance policies to help protect the assets you’ve worked hard to obtain.

Contact Max Businesses today


If you’re thinking about taking out a Caveat Loan or Second Mortgage, talk to the team at Max Businesses to discuss your options!