Units On One Title Mortgage

Types of multiple dwelling complexes

Many professional investors prefer to buy small blocks of 2, 3, 4 or 5 units on one title or multiple units in the same complex on separate titles. Other investors prefer to build the units themselves to receive a higher return on investment.

There are many types of multiple dwelling complexes such as townhouse, house, villa, semi-detached and fully detached house developments. All of these different types of properties have different lending guidelines and loans types available.

How much can you borrow?

The secret to finding the best possible loan is to find a lender to assess your loan as a residential loan and not as a business or commercial facility. Banks often refer loans for multiple units to their commercial divisions so that the bank can charge a commercial rate and make more money!

If your loan is assessed as a commercial loan then the amount you can borrow, known as the Loan to Value Ratio (LVR), is reduced significantly. We can’t always get your loan assessed as a residential loan, however we will always try to find you the cheapest lender for your loan.

Duplex / dual occupancy

First home buyer: Case by case basis.

Investor: 95% of the property value.

Low doc: 80% of the property value.

Construction: 95% of the property value.

Discounts: Competitive professional package and basic loan discounts are available.

Note: Many LMI providers restrict lending for duplexes even though they are readily saleable and are excellent security for a loan. We have access to lenders that can consider loans over 80% of the property value. You can find out more on our duplex home loan page.

Up to 4 units / dwellings

First home buyer: Not applicable.

Investor: 80% of the property value (up to 95% on a case by case basis).

Low doc: 60% of the property value (up to 80% on a case by case basis).

Construction: 80% of the property value (up to 90% on a case by case basis).

Discounts: Competitive professional package and basic loan discounts are available.

Note: Most lenders restrict the amount you can borrow quite significantly to around 70% of the property value. We deal with a few select lenders that can consider lending more on a case by case basis.

Do you need help with your mortgage? Call us on 1300 889 743 or enquire online and one of our mortgage brokers will help you to get approved!

Up to 6 units / dwellings

First home buyer: Not applicable.

Investor: 80% of the property value.

Low doc: 60% of the property value (up to 75% on a case by case basis).

Construction: 70% of the Gross Realisation (the on completion value) or 80% of the hard costs (land value plus construction costs), whichever is the lesser.

Discounts: Competitive professional package and basic loan discounts are available in some cases.

Note: Most lenders restrict the amount you can borrow quite significantly to around 60% of the property value or will offer you a commercial loan at a higher interest rate. We can still offer residential loans for this type of security through some of our specialist lenders. The result is that you can often pay below the banks standard variable rate, even though many other lenders would charge you commercial interest rates.

Up to 10 units / dwellings

First home buyer: Not applicable.

Investor: 70% of the property value (up to 80% on a case by case basis for very strong applicants).

Low doc: 60% of the property value.

Discounts: Competitive professional package and basic loan discounts may be negotiated with the lender for larger loans.

Note: Most lenders restrict the amount you can borrow quite significantly to around 60% of the property value or decline the loan outright. We can consider large loans such as this, still at discounted rates below the bank standard variable rate.

More than 10 units in one block / dwellings

First home buyer: Not applicable.

Investor: 70% of the property value.

Low doc: 60% of the property value.

Discounts: We have access to specialised commercial lenders who can consider approving your loan at close to the residential Bank Standard Variable Rate. This is significantly below the cost of a commercial loan from one of the major banks who tend to charge a premium for blocks of units.

Many lenders will assess these properties as developments and will refer you to business banking. You can borrow more than 70% of the property value using a commercial facility, with a competitive interest rate.

Do you need help with your mortgage? Call us on 1300 889 743 or enquire online and one of our mortgage brokers will help you to get approved!

Why are the banks so conservative?

The lenders are conservative when assessing loans secured by multiple dwellings in one location because these properties are a much higher risk to the bank compared to a normal house. Consider how easy it would be to sell one house as opposed to a block of units?

If you have multiple properties spread out over different locations this represents a much lower risk to the bank and so can be assessed normally.