Last Updated: 18th October, 2023

How much can you borrow?

  • First home buyer: 95% of the property value (restrictions apply).
  • Investor: 95% of the property value.
  • Guarantor loans: Borrow up to 100% with select lenders only.
  • Low doc: 80% of the property value.
  • Discounts: Competitive professional package and basic loan discounts are available.

Most banks restrict the amount that you can borrow to 70-80% of the property value.

Borrowing more is possible if you apply with the right lender or if you have a , which allows you to borrow up to 100% of the property value.

Please call us on 1300 889 743 or enquire online and our mortgage brokers will let you know how much you can borrow for your specific property.

Why are the banks so conservative?

Banks believe that heritage listed properties do not always appeal to the general market and, as a result, may take longer to sell. Because of this extended time to sell the property, banks consider them to be a higher risk than a normal property.

There is plenty of debate surrounding the suitability of heritage listed properties as security for a mortgage. As a result of this the lending guidelines for home loans are usually ambiguous.

We can often convince lenders to bend their lending guidelines for historical or desirable properties that are in high demand.

Would you like our help to finance your purchase? We know which lenders can help and which of them offer the most competitive interest rates.

Please call our mortgage brokers on 1300 889 743 or enquire online and we will help you to apply for a loan to buy a heritage listed house or unit.

What is a heritage listed property?

Properties that are unique, are historically important to Australia or have architecture that is worth preserving are often heritage listed by the state government or heritage council.

A heritage listing puts restrictions on the redevelopment of a property to preserve it in its current condition.

Some people believe that a heritage listed property is worth more than a property that is not heritage listed because of the prestige and history associated with it.

Other people believe that it is a negative attribute and that it reduces the property value because there are limitations on what you can do with the property.

Conditions that define a heritage listed property:
  • Historic/Socio-cultural value
  • Architectural or Artistic significance with respect to design and style
  • Materials used for construction

Industrial heritage is related to cultural heritage but instead deals with the preservation of buildings and industry artifacts that are passed on by previous generations and maintained and protected for future generations.

What are the advantages?

  • Provides certainty to owners, neighbours and intending purchasers
  • Incurs item protection that requires local councils to evaluate the effect of future developments in the surrounding area
  • Listed properties gain access to the free heritage advisory services that include heritage grants and loans

Are they a good investment?

It really depends on the location.

Heritage listed properties in metro areas are rare or, for all intents and purposes, have been deregistered to accommodate a growing population.

In rural or semi-rural locations, heritage properties and “conservation areas” are more common and may not attract a large number of interested buyers.

They can really go either way so it’s important to speak to an experienced valuer that knows the area well because it’s difficult to find comparable sales.

What are the drawbacks?

Three of the main issues are:

  • The extensive building and pest inspection you should complete prior to purchase.
  • The expensive home building insurance that you’ll be required to pay that can actually be a double-edged sword and prevent you from undertaking certain building works.
  • The upkeep you may be obliged to undertake by the local council or state government.

Do you have development plans?

Renovating or redeveloping a heritage listed property isn’t completely out of the question as long as you play by the rules set out by local council and/or the state government.

Just because the property and land is registered doesn’t mean that it’s been kept in good condition by the previous owners.

With some work, such as replacing and refurbishing fixtures and fittings, replacing old floor boards and even a fresh coat of paint, the property can be given a new lease on life and attract more potential buyers.

Depending on the zoning, you may even be able to sell it as unique business premises.

Bear in mind that cost of renovating a heritage listed property can be higher than a standard property.

This includes buying custom building materials or hiring specialists, such as an architect with experience in heritage real estate and specially-trained tradespeople.

In addition, properties listed on a state register come with stricter requirements than at the council level and you may be prevented from undertaking such work.

At the very least, Development Application (DA) approvals can take much longer to process.

Check out you state’s heritage registry to find out what restrictions apply to your property.

For example, the ‘Search for NSW heritage’ or the Victorian Heritage Database.

How Home Loan Experts can help you

  • We know which banks accept heritage listed properties
  • We know what documents and information they will require
  • Our mortgage brokers are experts in getting tough loans approved

To find out how we can help, contact us on 1300 889 743 or enquire online today!

Finance your heritage listed property

If you are interested in buying or refinancing a property that is heritage listed then please call us on 1300 889 743 or enquire online and we can help you work out how much you can borrow.

Low doc loans for heritage listed properties are available upon request.