Re: Can I get a home loan to buy a property on Scotland Island?
Posted: Thu Jun 14, 2018 3:00 pm
Hi Pradhan. Welcome to the forums.
Island and water access properties are considered speciality properties because they are disconnected from the mainland, i.e. they are located on islands that are not linked by bridges.
These properties are hard to sell because of the difficulties in accessing the property and the demand is low. As such, the property couldn't be sold fast and the banks are likely to make a loss if they were to sell in case of default. This increases the risk to the lenders, which is why they may be reluctant to approve your home loan application.
From the details you've provided, it looks like you're looking to borrow around 83% loan to value ratio (LVR). Some lenders might not be comfortable lending over 80% of the property value other than for Tasmanian properties.
However, some of our lenders will assess each mortgage application on a case by case basis depending on the location, accessibility and the type of the property.
Also note that most lenders may have certain postcode restrictions on these properties since these areas are particularly riskier than others. Please note that the lenders tend to favour highly populated areas or suburbs such as Hobart and Launceston rather Sydney.
Please call us on 1300 889 743 or enquire online and find out if you qualify for an island access home loan.
Cheers,
Island and water access properties are considered speciality properties because they are disconnected from the mainland, i.e. they are located on islands that are not linked by bridges.
These properties are hard to sell because of the difficulties in accessing the property and the demand is low. As such, the property couldn't be sold fast and the banks are likely to make a loss if they were to sell in case of default. This increases the risk to the lenders, which is why they may be reluctant to approve your home loan application.
From the details you've provided, it looks like you're looking to borrow around 83% loan to value ratio (LVR). Some lenders might not be comfortable lending over 80% of the property value other than for Tasmanian properties.
However, some of our lenders will assess each mortgage application on a case by case basis depending on the location, accessibility and the type of the property.
Also note that most lenders may have certain postcode restrictions on these properties since these areas are particularly riskier than others. Please note that the lenders tend to favour highly populated areas or suburbs such as Hobart and Launceston rather Sydney.
Please call us on 1300 889 743 or enquire online and find out if you qualify for an island access home loan.
Cheers,