What Is A Stratum Title Unit?
A stratum title, also known as a stratum estate or company share title in Victoria, is a form of property ownership commonly used for some older units, townhouses, and apartment-style properties.
It is similar to strata title because individual owners usually occupy separate units within a larger property. However, the ownership structure can be more complicated.
In many cases, owners buy shares in a company that owns or controls the property’s common areas.
How Much Can You Borrow For A Stratum Title Property?
- First home buyer: 85% of the property value.
- Investor: 85% of the property value.
- Guarantor loans: Borrow up to 100% with select lenders only.
- Low doc: 80% of the property value (case by case).
- Discounts: Competitive professional package and basic loan discounts are available.
Stratum title has restrictions, and many lenders refuse to accept these properties as security for a mortgage. We have access to a few select banks that will lend up to 85%.
In particular, only a select few lenders offer stratum title low-doc loans.
Enquire online or call us on 1300 889 743 to talk to a mortgage broker that specialises in stratum title properties.
Can Banks Accept A Stratum Title Property As Security?
Yes, some lenders will accept a stratum title property as security, but not all of them will.
Stratum title can be trickier than standard strata because the ownership structure is more complex. The lender may need security over both your individual unit and your shares in the company that manages or owns the common areas.
Because of this, some lenders may say no or limit the loan to 80% of the property value. In some cases, we have helped borrowers get up to 85%, depending on the property and the strength of the application.
Before you sign a contract or go unconditional, check whether a suitable lender will actually accept the property.
Apply For A Stratum Title Home Loan
Borrowing money for a stratum title or group title unit is not as straightforward as for a normal apartment. By using a specialist mortgage broker you can find out who will lend you the most money and still give you a competitive home loan.
Call us on 1300 889 743 or fill in our free assessment form to find out which lenders can help.