How much can I borrow to buy a property under company title?

Any general questions you might have in regards to loans and finance.
Post Reply
User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How much can I borrow to buy a property under company title?

Post by Otto Dargan »

Hi SCARFACE,

If you want to buy a company title apartment unit then a company title mortgage may be a suitable option for you. You may be able to borrow:
  • up to 85% of the property value if you’re a first home buyer.
  • up to 85% of the property value if you’re investing.
  • up to 100% of the property value plus costs if you’re taking out a
    • guarantor home loan.[/url]
    • up to 60% of the property value if you’re taking out a low doc loan. If you have BAS statements to support your income then you may be able to borrow up to 80% of the property value.
    Some lenders may also offer competitive professional package interest rates and pricing discounts as well.

    Bear in mind that lenders tend to reduce the loan amount for company title properties. That's because these structures tend to have additional administration costs and there can be delays in the event that they have to sell the property to repay the home loan. There is simply less of a market for people who want to buy a company title unit.

    Many modern-day company title apartment blocks may have fewer restrictions than older blocks from the 1960s. However, most Australian lenders still assess them in the same way.

    If you want to learn more about this then call us on 1300 889 743 or complete our free assessment form.

    Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How much can I borrow to buy a property under company title?

Post by Otto Dargan »

Hi SCARFACE,

Regarding the duplex, with just 2 properties on the property title, most lenders have a rule that there be a minimum number of properties in the company. For example, Commonwealth Bank (CBA) and the other major banks require that there be 4 properties on the title.

Dual occupancy homes or duplexes are fast becoming a popular alternative to single dwellings in areas where land is in short supply and there are special duplex home loans available to help you buy the property you're after.

However, banks prefer duplex properties to be a freehold title instead of a company or strata title.

Also note that the majority of lenders restrict the loan amount for duplexes to below 80% Loan To Value Ratio (LVR) of the property value, or 60% for low doc loans.

We deal with banks that are willing to consider lending more, depending on the location and value of the duplex.

If you want to discuss duplex mortgages or a company title mortgage directly with one of our mortgage brokers then you can give us a call on 1300 889 743 or enquire online.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Post Reply