Urgent Short Term Loans to Pay Your Deposit on Exchange
Pay the deposit on exchange with the equity in property you already own
Experts in strategic, short-term finance
When you have found the right property, the deposit is usually due on exchange, often within days. If your equity is held in another property rather than cash, we can release it in as little as 24 hours so you can exchange on time.
We fund deposits for investment and commercial purchases, from $250,000 up to $10 million. The loan is usually repaid by refinancing the property it is secured on with your bank, or from the sale of another property.
When a deposit loan helps
- •Your savings are committed to the business, and your equity is in property
- •You have been offered an off-market purchase that needs to exchange this week
- •The seller will not accept a deposit bond
- •Your bank can release equity, but it will take several weeks
- •You are buying at a commercial auction and need the deposit on the day
Deposit bond or deposit loan?
A deposit bond is a guarantee that the deposit will be paid at settlement. It usually costs less, but the seller does not have to accept it, and many commercial sellers do not. A deposit loan pays the seller cash on exchange, which every seller accepts. If the seller has refused a bond, or you need cash for another reason, a deposit loan is the practical option.
What the deposit loan can include
- •The deposit due on exchange, usually 5% to 10% of the price
- •Stamp duty, if it falls due soon after exchange
- •Legal fees and due diligence reports before settlement
How fast we can fund a deposit
Today. Tell us the deposit amount, the exchange date and which property you can offer. We aim to have an indicative offer with you within hours.
Valuation. Our in-house valuers assess your property, usually within a day.
Letter of offer. It follows immediately once you accept the terms.
Funding. The funds can be paid to the seller's agent or solicitor on exchange, in as little as 24 hours.
Details we will ask for
- •The contract or offer, showing the price and deposit amount
- •The address and mortgage balance of the property you are offering
- •Your plan for funding the purchase at settlement
- •How the deposit loan will be repaid
Ways we can fund the deposit
- •Caveat loans: the fastest option, registered as a caveat on a property you own
- •Second mortgage: behind your existing bank loan, without refinancing it
- •First mortgage: over a property you own outright
- •Bridging loans: where the deposit will be repaid when another property sells
Deposit loan terms
| Loan feature | Detail |
|---|---|
| Loan size | $250,000 to $10,000,000 |
| Interest rate | From 9.7% p.a. (first mortgage), from 11.95% p.a. (second mortgage) |
| Term | 1 to 24 months, interest only. Interest can be capitalised, so there are no monthly payments before settlement |
| Maximum LVR | 70% across the property we hold as security, including existing mortgages |
| Security | A caveat, first mortgage or second mortgage over a residential, commercial or industrial property you already own |
| Funding | From 24 hours |
Repaying a deposit loan
We agree the repayment plan before we lend. The most common plans are refinancing the property that secures the deposit loan, selling another property, or funds from the business. We also look at how you will fund the rest of the purchase at settlement, because the deposit loan and the purchase loan need to work together.
An exchange we funded
“Deposit loans are usually about speed at exchange. The buyer has plenty of equity, but it is in another property and the seller wants cash this week. We lend on that property and pay the deposit, and we check how settlement will be funded, so the buyer is not left short later.”
Gino Tabila
Associate Director
Frequently Asked Questions
Get an indicative offer within hours, not weeks.
No credit check. No obligation.
Why Secured Lending?
Are you a broker? Find out why brokers love working with us.
Case Studies
$400K Second Mortgage Repaid in Full After a Flexible Two-Month Extension
$1.8M First Mortgage Releases $980K of Working Capital for a Solar Business
$2.3M Second Mortgage Refinances an 18% Facility for a Glass Manufacturer
$800K Bridging Finance for Simultaneous Property Transactions in 48 Hours
$300K Second Mortgage for Dental Practice Working Capital in 5 Days
$700K Working Capital for a Technology Start-Up Settled in 72 Hours
$3M Working Capital for IT Business Expansion Settled in 2 Business Days
$1.9M Commercial Property Acquisition for Growing Doggy Daycare Business
Get an indicative offer within hours, not weeks.
No credit check. No obligation.
Why Secured Lending?
Are you a broker? Find out why brokers love working with us.
Other Urgent Loans We Fund
Each page covers one deadline: what we fund, what to send us and how quickly we can settle.