Specialist property finance made easy!
Did you know that different banks will accept different types of property as security for a loan? The secret to getting your loan approved is to find the right lender for the type of property that you are buying!
How can we help you?
We are loan approval experts, not just normal mortgage brokers. So if you need to finance an unusual property such as a serviced apartment, company title unit, duplex, rural land or even a flood zoned property then we will know which lenders can help you.
What types of properties can be financed?
- Inner city units
- Studio apartments
- Vacant land
- Postcode restrictions
- Off the plan units
- Owner Builder Construction
- Warehouse conversions
- Heritage listed
- Multiple units
- Luxury residential
- Hotel conversions
- Mining towns
- Student accommodation
- Properties with rental guarantees
- Flood zoned properties
- Different title types
- Company title properties
- Stratum title properties
- 2nd mortgages
- Dual occupancy / duplexes
- … and many more!
What does a bank assess?
When banks consider a property as security for a loan, they are ultimately assessing the likelihood that they will lose money in the event that the property has to be sold to repay the debt. So what are they actually looking for?
- Loan to value ration (LVR): This is the amount you are borrowing as a percentage of the value of the property. Generally the higher risk the property, the lower the LVR you can get. Often you can borrow 100% for normal houses but may only be able to borrow 70% for riskier properties.
- Saleability: Properties that have limited appeal to the general public may take longer to sell, and so are less desirable as security for a loan. Banks always want a property that can be sold quickly in the event that the loan cannot be repaid.
- Stable value: Clearly if a property reduces in value significantly then the bank could make a loss if they had to sell the property to repay the loan. Because of this they tend to require a lower LVR when lending money for a property that may fluctuate in value.
- Legal issues: Some property types such as company title units do not have a normal certificate of title, and so there may be legal issues in the event that the bank has to sell the property to recover their loan.
When trying to obtain approval for a loan secured by an unusual property we always present a case to the lender highlighting the strengths of the application and explaining why they should consider the loan. By speaking in their language and providing additional supporting documents, we can often give them enough of a reason to bend their lending guidelines.
Do you have the address?
If you know the address of the property that you need to finance, then often our staff can find out more information on that property and then get back to you with the specific bank policy that is applicable.
We can google the property address and see old for sale listings which often include more information about the limitations or possible problems from a lenders point of view. We can also contact the credit departments of several lenders which keep databases on specific properties of interest.
In particular most large blocks of units (>50 units) are in at least one lenders database and so we are able to ask about their most recent credit decision for an application submitted with one of the properties in that block as security. This is a quick method we can use to find out if it is feasible for you to buy that particular property.
Do you need our help?
Our staff have experience working for various bank and non-bank lenders and as a result know exactly what the banks are looking for when approving a loan. For this reason we often receive enquiries from people requiring finance for unusual properties. Please enquire online and one of our mortgage brokers can help you to find a loan for the property you are interested in buying.