what about company title properties?

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moodyjack
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Joined: Wed Jun 17, 2009 4:36 pm

what about company title properties?

Postby moodyjack » Mon Apr 19, 2010 10:50 am

I've been looking around for a property to buy for some time - lately i found a unit that's in company title, is it easy to get a mortgage? what's the maximum i will be able to borrow??

Cheers.

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Otto Dargan
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Re: what about company title properties?

Postby Otto Dargan » Mon Apr 19, 2010 10:59 am

Hi Jack,

Yes it is still possible to get a home loan on a company title property. The lender will take security over shares in the company rather than a mortgage over land so for this reason it is a little more complicated and the banks will be more conservative than when lending for a normal property.

Please be aware of the following:

* Many banks will reduce the amount you can borrow to 80% or less of the purchase price or will just decline your loan outright. We have lenders that can consider up to 85% and in same rare cases 90%.
* In some company title blocks the other owners must approve you as the buyer of the unit. This also means that when you sell the unit later you must get approval from the other owners.
* If you don't follow the rules of the company then you can be kicked out of your unit. Please be sure to read the rules carefully!

Good luck with your purchase!
Otto Dargan
Mortgage Broker
P | 1300 889 743
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