As security for a loan, lenders will require property which will take the form of a First Mortgage (if the property is not already encumbered with a bank loan) or a registered Second Mortgage or  registered Caveat.

From a security perspective a second mortgage provides a higher level of protection for the lender, but still works in much the same way as a registered caveat.

Short term lending is more expensive than standard bank loans for a number of reasons; the most important of which is the speed of the transaction.  Other factors include the risk premium applied and the shorter deployment term of the money.

Establishment costs include a Valuation Fee, an Application Fee and Legal Costs.

A reputable lender will require approximately seven days to complete the transaction providing due diligence has been undertaken.

Post GFC lenders, providing second mortgage and caveat finance, are now more cautious and tend to limit their loan to valuation ratios to a maximum of 75%.

Key factors to be mindful of include interest rate and associated fees.

For further information or to apply for finance read the FAQ page.