Property Title Types
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) of that property is; mortgages and caveats; and any easements, rights of way or covenants that either benefits or disadvantages the property.
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.
Note: For all title types, aside from Torrens and Strata, there are a few restrictions on the amount you can borrow.
Please call us on 1300 889 743 or enquire online to find out how to finance your property.
Acceptable title types
This is the most common type of title with a single document with guaranteed ownership. The title is 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 titles 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 and gardens, security, tennis courts, pools and any other services in the neighbourhood that 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. They can be more difficult to finance but by applying with the right lender you should be able to obtain approval for a mortgage.
Qualified torrens title
A Qualified 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. 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, however we have access to some lenders that can consider limited title properties for a mortgage.
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. If the lessor is the Government for a particular state or territory then 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.