Is your property type stopping you from getting a mortgage?
The property title is a legal document, often a certificate, which defines what property you own.
Everything that affects your property will be listed on the title including who the owner(s) is, mortgages and caveats, and any covenants.
For all title types, aside from Torrens and Strata, there are a few restrictions on the amount you can borrow.
How much can you borrow?
- First home buyer: 95% of the property value.
- Investor: 95% of the property value.
- 100% loans: Available with some of our lenders if you have a guarantor.
- Low doc: 80% of the property value.
- Discounts: Competitive professional package and basic loan discounts are available.
Please call us on 1300 889 743 or enquire online to find out if your property title will be accepted.
Acceptable title types
This is the most common type of title.
It provides a single document with guaranteed ownership and its registered with the state government so there are few disputes or unregistered dealings.
Torrens title is commonly used for land or houses.
This is a type of Torrens title which commonly refers to unit, apartment or townhouse properties.
Strata title, similar to a group title define the property as the airspace occupied by each unit, with common areas such as gardens and stairwells that are shared by each owner.
A strata corporation is set up to handle maintenance of common areas and insurance of the buildings.
Similar to strata title, community title usually refers to an entire subdivision or neighbourhood.
By setting up a community title rather than a strata title, the entire community can pay to look after common grounds.
In addition, gardens, security, tennis courts, pools and any other services in the neighbourhood can all be shared by the occupants.
In some cases, this type of title is referred to as Neighbourhood title but for all intents and purposes this is the same as Community title.
For more information about financing company title properties, please refer to our company title page.
You may be required to borrow a lower percentage of the property value.
Old system title
When Australia was first settled, there was no formal system for registering the ownership of land.
As the colonies developed, they created registers and, eventually, a formal centralised system for registering ownership which has over time moved to the Torrens title system.
Properties are not registered in this system are known as Old System title properties.
By applying with the right lender you should be able to obtain approval for a mortgage.
Qualified torrens title
A Qualified torrens title property is effectively a normal Torrens title property with a warning that the land is held subject to any other person’s interest that may exist.
In most cases, these are properties that were previously old system title that have been converted to be Torrens title properties.
This title is acceptable to some lenders as security for a home loan for up to 80% of the property value.
Additional bank fees may apply as part of the application process.
Limited Torrens title
This is a standard Torrens title property which has not been adequately surveyed so it is not known exactly where the boundaries of the land are.
You can convert limited title properties into standard Torrens title properties but there are usually additional costs involved.
These properties are unacceptable to some banks but we have access to some lenders that can consider limited title properties for a mortgage.
As a general rule you can borrow up to 80% of the property value. A survey may be required by the lender to confirm the property boundaries.
Leasehold title (conditions apply)
There is no freehold estate land in the Australian Capital Territory (ACT) but there is a leasehold system.
This means that ownership of a property is in actual fact a right to use the land for a specified term, usually for a term of 99 years.
Crown Land / Perpetual Leasehold title in other states are also common. In particular in NSW some luxury apartments on converted wharfs are maritime leasehold.
If the lessor is the government for a particular state or territory, we are likely to have no problems helping you to get approval for your mortgage.
Leases that are not from a government body cannot be financed with a home loan.
Which bank will accept your property?
Our mortgage brokers are experts in financing properties with titles that may not tick all of the boxes for every lender.
We can quickly work out if you can get approval and find you the lowest interest rate for your home loan.
If your borrowing power is restricted due to the nature of the property, you may actually be able to borrow 100% of the purchase costs by using a guarantor.
Please call us on 1300 889 743 or enquire online to find out how we can help you.