Caveat loan calculator
Combined loan-to-value ratio
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An estimate to help you plan, not an offer or approval. Lenders set their own policies, costs and limits.
Quick answer
This caveat loan calculator shows how much equity a property has left after a short-term caveat loan, your combined loan-to-value ratio, the total cost over the term using the costs a lender quotes you, and the month you'd need to repay or refinance by. It doesn't assume an interest rate, because every caveat loan is priced individually.
Key points
- Combined LVR is the number caveat lenders look at first
- Enter the monthly cost and fees from a real quote to see the total cost in dollars
- The repay-by date reminds you that caveat loans are short-term by design
A caveat loan is fast money against property you already own, usually behind an existing mortgage. Before you talk to a lender, it helps to know three numbers: how much equity you’re working with, what the loan will cost in dollars, and when it has to be repaid. This calculator gives you all three in under a minute.
How to use the caveat loan calculator
- Property value. Your best estimate of what the property would sell for today. Be realistic: lenders will check with a valuation.
- Owed on the property now. Every mortgage and registered loan against it. If it’s unencumbered, enter 0.
- Amount you need. What the business problem actually requires. Borrowing a little less than the maximum keeps costs down and options open.
- How long you need it. Caveat loans are short. Pick the term that matches your exit, the event that will repay the loan.
- Monthly cost and upfront fees. Take these from a real quote if you have one. Leave them blank to see the equity picture alone.
Reading your results
Combined loan-to-value ratio (LVR). Everything owed against the property, including the new loan, as a share of its value. This is the first number a caveat lender looks at. Lower is better: there’s more cushion if values move, and more lenders will be comfortable.
Equity left after the loan. What’s still yours on paper once all lending is counted. It’s the buffer that protects you and the lender.
Total cost over the term. The monthly cost multiplied by the term, plus upfront fees. This is the most honest way to compare caveat loan offers. A cheaper-looking monthly figure with big fees can cost more overall.
Repay or refinance by. A reminder that caveat loans are designed to end. Put this date in your diary and line up the exit well before it arrives.
A worked example (illustrative)
A business owner has a home worth $1.2 million with $600,000 owing on the mortgage. They need $150,000 for three months to clear a tax debt while a large contract payment comes through.
- Combined LVR: ($600,000 + $150,000) ÷ $1,200,000 = 62.5%
- Equity left: $450,000
- If a lender quotes, say, a fixed monthly cost and an establishment fee, the calculator adds them up for the three months giving the owner one dollar figure to weigh against a second mortgage quote.
At 62.5%, many private lenders would be comfortable, and the clear exit (the contract payment) is exactly what they want to see.
What the calculator can’t tell you
It can’t approve you or promise a cost. Lenders also look at the property type and location, the purpose of the loan, how believable the exit is and whether the existing home loan contract permits extra security over the title. A property in a regional town or a specialised commercial building may attract a lower limit than a suburban house.
Want a specialist to sanity-check your inputs? Send us the basics; submitting the form doesn’t trigger a credit enquiry.
Related calculators
- Second mortgage calculator: the maximum second mortgage at different combined limits.
- Property equity calculator: usable equity for residential, commercial or rural property.
- Loan cost comparison calculator: two quotes side by side.
Three habits that keep a caveat loan affordable
- Borrow to the problem, not to the limit. If the tax debt is $90,000, resist the urge to round up to $150,000 just because the equity allows it. Every extra dollar carries the monthly cost.
- Match the term to a dated event. A settlement date, a contract milestone or a confirmed refinance gives you a real finish line. “Business should pick up” doesn’t.
- Ask what an extension costs before you need one. Exits slip. Knowing the extension fee and process upfront avoids a nasty surprise in month four.
Run the calculator twice: once with your planned term and once with an extra two months. The difference is the price of a delay, and it’s worth knowing before you sign.
When the numbers look workable
Healthy equity plus a dated way out often means a caveat loan can be arranged within days, bank decline or not. Share the sum, the property and the cut-off date with us. Your credit report stays untouched at the enquiry stage, your details stay with one team, and a specialist calls to talk through what’s achievable. The more exact your answers, the sooner we can point to a structure that works.
Frequently asked questions
What LVR do caveat lenders accept?
Each lender sets its own limit and it varies with the property type and location. Residential property usually supports a higher combined LVR than commercial or rural property. The lower your combined LVR, the more lenders will be comfortable and the smoother the deal tends to be.
Why doesn't the calculator ask for an interest rate?
Caveat loans are priced on the property, the equity, the term and the urgency, so a default rate would mislead you. Enter the monthly cost and upfront fees from a real quote and the calculator shows the total cost in dollars.
How long can a caveat loan run?
Caveat loans are usually short: from a few weeks to around twelve months. If you need longer, a second mortgage or a longer secured loan is usually cheaper.
Can I use commercial property for a caveat loan?
Yes. Many caveat lenders accept commercial and industrial property as well as residential, usually at a lower maximum LVR.