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Property Types

Specialist property finance made easy!

Did you know that different banks accept different types of property as security for a loan?

The secret to getting your loan approved is to find the right lender for the type of property that you are buying!

Read our articles on property types

How can we help you?

We are loan approval experts – not just normal mortgage brokers. So if you need to finance an unusual property such as a serviced apartment, company title unit, duplex, rural land or even a flood zoned property then we will know which lenders can help you.

What types of property can be financed?

What does a bank assess?

When banks consider a property as security for a loan, they are ultimately assessing the likelihood that they will lose money in the event that the property has to be sold to repay the debt. So what are they actually looking for?

  • Loan to Value Ratio (LVR): This is the amount you are borrowing as a percentage of the value of the property. Generally, the higher the risk of the property, the lower the LVR you are eligible to borrow. Often you can borrow 100 per cent for normal houses but may only be able to borrow 70 per cent for riskier properties.
  • Saleability: Properties that have limited appeal to the general public may take longer to sell so are less desirable as security for a loan. Banks always want a property that can be sold quickly in the event that the loan cannot be repaid.
  • Stable value: Clearly if a property reduces in value significantly then the bank could make a loss if they had to sell the property to repay the loan. Because of this they tend to require a lower LVR when lending money for a property that may fluctuate in value.
  • Legal issues: Some property types such as company title units do not have a normal certificate of title so there may be legal issues in the event that the bank has to sell the property to recover their loan.

When trying to obtain approval for a loan secured by an unusual property we always present a case to the lender highlighting the strengths of the application and explaining why they should consider the loan. By speaking in their language and providing additional supporting documents, we can often give them enough of a reason to bend their lending guidelines.

Do you have the address?

If you know the address of the property that you need to finance then often our staff can find out more information on that property and get back to you with the specific bank policy that is applicable.

We can search for the property address online and gather information from old sale listings including the limitations or possible problems from a lender’s point of view. We can also contact the credit departments of several lenders which keep databases on specific properties of interest.

In particular, most large blocks of units (less than 50 units) are in at least one lender’s database so we can ask about them what their most recent credit decision was for an application submitted with one of the properties in that block as security. This is a quick method we can use to find out if it is feasible for you to buy that particular property.

Do you need our help?

Our staff have experience working for various bank and non-bank lenders and as a result know exactly what the banks are looking for when approving a loan. For this reason we often receive enquiries from people requiring finance for unusual properties. Please enquire online and one of our mortgage brokers can help you to find a loan for the property you are interested in buying.

  • M Stang

    I want to buy a duplex, is that allowed by the banks or do they have any reservations on such properties?

  • Hi there, not all lenders accept duplex or multiple units on one title as most of them accept only one property on one title. Having said that, there are lenders who can accept a duplex so going through the right one is key to getting approved.

  • E. Kelsall

    Hello. I want to borrow 95% LVR for an owner occupied property. I have full financials and am looking to borrow around $550k. The property is actually 4 units on one title & a bungalow out the back but I want to restore it back to one house. I’ve been declined by a bank already so I need help.

  • Hey E. Kelsall, we know a lender that has a 95% for 4 units on one title option in hteir policy. However, it’s likely that with the bungalow, it’s 5 units on one title! We need clarification as to it being either 4 units or 5 since this is a big deal. If lenders don’t budge then we may need to change the situation and drop your LVR a bit or go guarantor. Please speak with one of our expert mortgage brokers by calling 1300 889 743 to find out what can be the best way to proceed.

  • Gilruth

    I have a good income and I want to borrow 80% to buy a church which I’ll convert to a residential property afterwards. It’s a Cat 2 location so shouldn’t be a bit issue I guess.

  • We may need to check the zoning and see if it would be considered commercial, which would mean a non-conforming security. If you have a building contract in place to convert it to a house and it is fairly close to a house already then it can potentially be considered residential. Please enquire online for a full and free online assessment: