Blue Streak Review for Potential Borrowers

First Mortgages

First mortgage loans are an option for borrowers that can offer unencumbered property (whether that be existing unencumbered property, or, property where our client refinances the existing mortgagees or caveat holders) as security for a loan, or where there is surplus equity in a property. They have a number of advantages, including:

• providing access to sizeable loan amounts and longer loan terms when compared to other loan products;
• giving your business access to funds within short timeframes;
• lower costs than unsecured finance options.

Second Mortgages

A second mortgage is a loan secured by a property that is already mortgaged to another credit provider (typically a bank). Second mortgage business loans from a private lender have a number of advantages, such as:

• giving your business access to loan amounts above the strict lending limits of banks;
• quick business funding. Almost all of our private lender clients will be prepared to advance funds based on the registration of a caveat over the security property;
• avoiding having to refinance your first mortgage;
• lower costs than unsecured finance options.

Caveat Loans

In essence, a caveat loan is a fast, short term business loan – an effective way to fund short term business loans when time is a constraint. As a caveat loan is a secured form of business lending, costs are generally lower than unsecured loan products as there is less risk to the lender. Caveat loans can be settled within 24 hours, and many of our panel lender clients will be prepared to fund a loan based on the registration of a caveat. However, lenders may seek to register a second mortgage over the property within the term of the loan.

However, post funding, lenders may seek to replace their caveat with a registered mortgage over the property although this will not happen in every case, and will certainly not delay funding in any way.