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The real cost of speed

Bridging & Caveat Cost

Bridging and caveat finance is quoted per month, which hides the true cost. Enter the loan, monthly rate, term and fees — see total cost in dollars and the effective annualised rate.

$
% / mo

Bridging and caveat finance is quoted per month. 0.95%–2.5% is typical.

months

Caveat loans are usually 1–6 months; bridging up to 12.

%

Of the loan amount. 1%–3% is common.

$

Flat fee charged when the facility is repaid, if any.

$

Lender legals and valuation, typically borrower-paid.

John Codrington

Effective annualised rate

19.9%

What the facility actually costs once every fee is in the number.

Interest over term$56,250
Establishment fee$15,000
Legal & valuation$3,500
Total cost of finance$74,750
Total payable on repayment$824,750
Short-term finance always looks dearer than a term facility annualised. The question is whether speed creates more value than it costs — make sure the repayment event is locked in.

Assumptions & method

  • Interest is simple (rate × term), the way bridging and caveat loans are quoted — not compounding.
  • Assumes interest is capitalised or prepaid, not serviced monthly.
  • Effective annualised rate = total cost ÷ loan ÷ (term in years). It is a cost ratio, not a regulated comparison rate.
  • Indicative only. Actual pricing depends on security, LVR, exit strength and lender.

Beyond the numbers

A number is a starting point, not an answer

These tools model the mechanics. The decision depends on structure, timing and the specifics of your scenario — that's the conversation worth having.

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