Island and water access only properties are specialty properties that are not connected to the mainland by a bridge.

Due to the unique attributes of these properties, they can often be difficult to use as security for a home loan.

How much can I borrow?

  • For land and houses in Tasmania we can finance up to 95% of the property value.
  • For houses on other islands we can finance up to 80% of the property value.
  • Borrow up to 105% of the property value with a guarantor.
  • Properties on rivers with no road access are assessed on a case-by-case basis.

Are you wondering whether your property will be accepted by the banks?

Call us on 1300 889 743, or enquire online to see which one of our lenders will be best suited to your situation.

Will banks accept my property?

Banks are wary of lending for island or water access properties as fewer people are interested in buying these kinds of property.

Due to the lower demand, resale of the property can be prolonged and the banks are likely to make a loss if the property needs to be sold to recoup the debt.

In particular, vacant land is considered to be a very high risk and often cannot be financed without a substantial deposit and plans to build a house immediately.

Many island or water access properties are subject to flooding, which also increases the risk to the bank.

However, some of our lenders will consider these properties on a case by case basis.

What island and water access properties do banks accept?

Our lenders are able to finance island and water access properties throughout Australia. These areas include:

  • Berowra Waters, NSW.
  • Dangar Island, NSW.
  • King Island, TAS
  • Scotland Island, NSW.
  • Magnetic Island, QLD.
  • Stradbroke Island, QLD (restricted to Dunwich, Amity Point and Point Lookout).
  • Lamb Island, QLD.
  • Macleay Island, QLD.
  • Hamilton Island, QLD.
  • Norfolk Island.
  • Cocos (Keeling) Islands.
  • Christmas Island.

Find out if the property you’re after will be accepted by a lender by calling one of our brokers on 1300 889 743 or enquiring online.

Is Tasmania assessed like other islands?

Tasmania is a much smaller property market than the other Australian states and many areas have properties that have been on the market for over a year. For this reason, some lenders assess Tasmania as a high risk area whereas others accept Tasmanian properties as security for a home loan.

Many lenders have restrictions on certain postcodes that they believe are a particularly high risk.

The banks tend to favour highly populated suburbs such as Hobart or Launceston.

Can I get a home loan?

Our brokers are experts in financing unique properties on islands or only accessible by river.

Call us on 1300 889 743 or enquire online to find out how you can get your home loan approved.

  • Maggie

    I’m looking to buy in Tasmania so it’s good to know that we can get up to 95% LVR, but what if the area is prone to bushfires? Will banks take that into consideration when assessing my home loan application?

  • Hello Maggie,

    Yes, banks will take it into consideration if you’re buying in a bushfire prone area. Generally, you may be able to borrow up to 95% in an area zoned BAL-29, 90% for a BAL-40 zoned property and 80% for a flame zone property. You can find out more here:

  • Toast

    We are trying to buy a river access property in Sydney and have just realised this is an issue. Many lenders have rejected on this basis despite us being a good risk generally. What lenders should we be looking at?

  • Hi Toast
    Im guessing you’re looking at scotland island or something on the hawksbury? We can usually lend 80% of the purchase price in these areas or more if you have a guarantor. Some lenders have specific rulings for these areas and in other cases we need to present a strong application to get an approval. Please call us 1300889743 if you’d like our help.

  • Toast

    I tried to call but only got an answering machine. Please ring me on (deleted) to discuss.

  • Our office is closed today. I’ve emailed your query to one of our brokers who just financed a property on Scotland Island.

  • Toast

    We are looking on the Woronora River in Sutherland. We have an excellent credit history and no debts bar a novated lease. Combined income is about $230k. We have a 20% deposit on a $1.1million property. Contract was exchanged and we’ve only just discovered the property security issues with water access places. We need finance by Friday.

  • Ok I’ll try to get them to call you today or tomorrow.

  • Toast

    Thank you!

  • lewis

    Is it only possible to remove the guarantor on my home loan after I pay it off to 80% LVR?

  • Hello lewis,
    Actually, no. You can apply to remove the guarantee if you can afford the repayments without any assistance, your loan is for less than 90% of the property value (ideally 80% or less), and you haven’t missed any payments in the last 6 months. You can still remove the guarantee if you owe more than 80% of the property value but you may have to pay LMI to achieve this.

  • Ethan

    I want to buy an investment property in Tasmania and the areas I’m interested in includes Tarleton and Orford for the most part. How risky will the lenders consider these locations?

  • Hi Ethan,
    According to our postcode calculator, Tarleton 7310 & Orford 7190 are both medium risk locations and lenders should have no problems with regular, standard properties in a good condition. Here’s a link to the calculator if you’d like to try it out yourself or check other locations:

  • Cooper11

    We are looking at buying some land to eventually build a house. How much can we borrow and how much deposit do we need. The land is in Scotland island, is approx. 4000m2 and has access to town water & utilities. We would be looking at construct in the next 2-3 years.

  • Hi Cooper11,
    For houses on other islands apart from Tasmania we can help you obtain finance up to 80% of the property value. Tasmanian land and houses could be financed up to 95% of the property value. Moreover, you could also borrow up to 105% of the property value with a guarantor for properties in all states. We have brokers specialised in financing unique properties on islands or only accessible by river. Call us on 1300 889 743 to find out how you can get your home loan approved.