Home Loan Experts

Want to invest in a block of units?

Different lenders will consider different types of multiple dwelling complexes including townhouses, houses, villas, semi-detached and fully-detached housing developments.

Duplex / dual occupancy

Note: Many LMI (Lenders Mortgage Insurance) providers restrict lending for duplexes even though they are readily saleable and are excellent security for a loan.

We have access to lenders that can consider loans over 80% of the property value.

Call us on 1300 889 743 or complete our free assessment form to discuss your investment plans with one of our mortgage brokers.


Up to 4 units / dwellings

  • Investor: 80% of the property value
  • Low doc: 60% of the property value
  • Construction: 80% of the property value
  • Discounts: Competitive professional package and basic loan discounts are available.

Note: Most lenders restrict the amount you can borrow quite significantly to around 70% of the property value. We deal with a few select lenders that can consider lending more on a case by case basis.

Call us on 1300 889 743 or fill in our free assessment form and one of our mortgage brokers will help you to get approved!

Up to 6 units / dwellings

  • Investor: 65% of the property value.
  • Low doc: 60% of the property value
  • Construction: 70% of the Gross Realisation (the on completion value) or 80% of the hard costs (land value plus construction costs), whichever is less.
  • Discounts: Competitive professional package and basic loan discounts are available in some cases.

Note: Most lenders restrict the amount you can borrow quite significantly, usually to around 60% of the property value or they will offer you a commercial loan at a higher interest rate.

We can still offer residential loans for this type of security through some of our specialist lenders.

You can often pay below the Bank Standard Variable Rate even though many other lenders would charge you commercial interest rates.

Up to 10 units / dwellings

  • Investor: 70% of the property value (up to 80% on a case by case basis for very strong applicants).
  • Low doc: 60% of the property value.
  • Discounts: Competitive professional package and basic loan discounts may be negotiated with the lender for larger loans.

Note: Most lenders restrict the amount you can borrow quite significantly to around 60% of the property value or decline the loan outright.

We can consider large loans such as this at interest rates below the Bank Standard Variable Rate.

More than 10 units in one block / dwellings

  • Investor: 70% of the property value.
  • Low doc: 60% of the property value.
  • Discounts: We have access to specialised commercial lenders who can consider approving your loan at close to the residential Bank Standard Variable Rate, which is far less than a commercial rate.

Many lenders will assess these properties as developments and will refer you to business banking.

You can borrow more than 70% of the property value using a residential development loan at a competitive interest rate.

Call us on 1300 889 743 or complete our free assessment form and one of our mortgage brokers will help you get approved!

How to find the right property

All the properties you should avoid and the ones you should go for - explained by Experts.

Take our detailed Home Buyers Program to not miss out on some great tips.

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Why do residential loans trump commercial loans?

The secret to finding the best possible loan is to find a lender to assess your loan as a residential loan and not as a business or commercial facility.

Banks often refer loans for multiple units on one title to their commercial divisions so that they can charge a commercial rate and make more money!

If your loan is assessed as a commercial loan, the amount you can borrow, known as the Loan to Value Ratio (LVR), reduces significantly.

We can’t always get your loan assessed as a residential loan but we’ll always try to find you the cheapest lender for your property type.

Speak with one of our mortgage brokers today by calling 1300 889 743 or complete our free assessment form so we can find you the best deal available from our panel of lenders.


Why are the banks so conservative?

Lenders are conservative when assessing loans secured by multiple dwellings in one location because these properties can be difficult to sell particularly in an economic downturn.

If you have multiple properties spread out over different locations this represents a much lower risk to the bank and can be assessed normally.

Give us a call on 1300 889 743 or fill in our free assessment form and one of our brokers can tell you whether you qualify for a mortgage.


What are some of the risks?

Buying a block of units can come with more risk than you’d normally experience when buying a standard investment property.

In particular:

  • Blocks of units in remote locations, such as country towns, may be difficult to sell later on.
  • All units are tenanted which can create trouble as less care is given to the building.
  • If something goes wrong with the property, you have all your eggs in one basket.
  • You’re heavily rental-reliant so a period of vacancy can cause financial hardship.
  • There are less lenders willing to finance your block, meaning you may not be able to access your equity.

You should consider the risks and your own financial capacity before buying a block.

This type of investment is usually best-suited for high net worth individuals with substantial cashflow on standby.


Tips for buying a block of units

Firstly, look at why you’re buying a block in one line.

If your goal is for a high rental return, you can get the same result by buying a house with a granny flat.

There is generally less risk, you’ll find it easier to get a home loan and still get a great rental return.

Try to avoid towns with less than 5,000 people.

A population of this size significantly reduces the size of the market, creating a great risk of successfully selling the property.

In fact, you could be waiting years to find a buyer.

In saying that, larger country towns are usually ok.

The quality of the tenants are very important, particularly with larger blocks or blocks with 10 units or more.

If all of the units are tenanted, the building can quickly end up becoming run down and can have significant unreported maintenance issues.

Buying in a good location and choosing a good property manager is critical to the success of your investment.

If you plan to convert your block to strata title, make sure you speak to council about the requirements before buying the block.

Many blocks need work to meet fire regulations or other rules which make this kind of project unfeasible.


Get in touch with
a specialist mortgage broker today.

With our award-winning mortgage brokers, tough home loan approvals become a breeze.