@ltetax

who’ve recently set up an smsf, what part actually took the longest — the setup, bank account, or ATO approval?

Hi Chas,

You’ve got good equity and your income situation is stabilising—this puts you in a better position than you might think.

A short-term 2nd mortgage or caveat loan could be a viable option to clear arrears and position for a refinance, but do be mindful of costs. These are best used for 1–6 month bridging, not long-…[Read more]

Hi Charlie,

With $500k cash and low serviceability, going through private lenders with a no doc or low doc business loan makes sense for short-term property flips. As Richard mentioned, expect rates around 1% per month plus fees, and LVRs usually max out around 65–70%.

Using a company structure can help bypass some serviceability hurdles, but d…[Read more]

Really interesting idea, Mish. In most cases banks want buyers to show at least 5–10% of genuine savings, so if the deposit is vendor-financed it can reduce borrowing power. Lenders also get cautious if there’s a caveat involved. You don’t need a special licence, but it’s definitely worth having a solicitor draw up the agreement properly and may…[Read more]

If the second mortgage was registered without your sister’s consent, that’s unusual and needs proper checking. Since both are on title, lenders normally require both signatures, especially with a short term business loan secured against property. She should speak to a property lawyer as soon as possible to review the registration and see what leg…[Read more]

Unsecured Lo-Doc loans are rare, especially on short notice. Most private lenders still require some form of security — often a second mortgage or caveat over property — but they can fund in 24–72 hours.

For a cashflow-positive purchase like yours, a private lender or specialist broker is your best bet. Rates are usually around 1–2% per month,…[Read more]

If both of you are self-employed with a decent deposit and no major debts, you’re in a pretty solid position. Many lenders will work with sole traders and ABN holders, even if your ABN is under two years, especially with strong supporting docs like BAS, bank statements, or accountant declarations. Lo Doc loans can be a practical option—just w…[Read more]

it’s still highly relevant today, we continue to see borrowers and brokers facing challenges when dealing with second mortgages and caveats.

Yes, banks can decline consent for a second mortgage. Most loan agreements include clauses requiring their approval before any additional charges are placed on the property, even if you’re within LVR l…[Read more]

Caveat loans can be lucrative, but they’re not low-risk. As others pointed out, a caveat doesn’t give you power of sale—it just flags your interest on title. If the borrower defaults, you’re behind the first (and possibly second) mortgage, and enforcement may require court action.

To clarify a few common questions raised here:

Why can’t t…[Read more]

I’ve been involved in a few caveat loans over the past couple of years, mostly in NSW and VIC. Here’s what I’ve learned the hard way:

1. Caveat loans aren’t low-risk, even if they sound simple. A caveat gives you a legal interest in the property, but it doesn’t give you priority over the mortgage holder. If things go bad and the property’…[Read more]