What is a stratum title unit?

Stratum title, also known as stratum estate, is similar to strata title in that it is normally used as a title for units or townhouses. Each unit owner has their own lot and the common areas such as gardens and stairwells are a separate lot owned by a service company which is in turn owned by the owners of the units.

As a general rule stratum title properties are more complex to manage and are not as widely accepted by banks as security for a home loan. Stratum title is used in Victoria and Tasmania, and is quite common in suburban Melbourne.


How much can you borrow?

  • First home buyer: 95% of the property value.
  • 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.

Stratum title has some restrictions, with many lenders refusing to accept these properties as security for a mortgage.

We have access to a few select banks that will lend up to 95%.

In particular there are only a select few lenders that can consider stratum title low doc loans.

Enquire online or call us on 1300 889 743 to talk to a mortgage broker that specialises in stratum title properties.


Why are the banks conservative?

Because of the complex nature of the legal ownership of stratum title properties, most banks tend to be hesitant to lend more than 80% of the property value. Similar to a company title property, the owners actually buy shares in a company which owns the common areas.

The bank takes a charge over the shares in the service company and also takes security over your lot. However just as with other blocks of units the owners vote on any decisions that need to be made to do with maintenance, insurance of the block and other expenses.

We have in some cases been able to finance loans for up to 95% of the property value depending on the location, size and value of the stratum title unit.


Apply for a stratum title home loan

Borrowing money for a stratum title unit is not as straight forward as for a normal apartment. By using a specialist mortgage broker you can find out who will lend you the most money and still give you a competitive home loan.

Call us on 1300 889 743 or fill in our free assessment form to find out which lenders can help.

  • Wallace

    I’m self-employed so I’ve been considering going 80% LVR on a low doc loan for a stratum title unit but my friends told me that I’ll have to pay LMI. Isn’t LMI applicable at over 80% and not exactly at 80% LVR?

  • Hey Wallace,

    Lenders Mortgage Insurance is applicable at over 80% LVR on standard, full doc home loans but for low doc loans, it’s applicable at over 60% LVR. If you want to learn more about low doc loans such as things that you should watch out for before getting the loan, you can check out the low doc loans page:
    https://www.homeloanexperts.com.au/low-doc-loans/

  • David Lee

    Rams Home Loans do it without LMI at 80%. But you want to check out if stratum title is okay for them

  • Hi David, Rams don’t accept company title or stratum title for low doc loans.

  • Mansour

    Will I be able to use a gift from a friend as part of my home loan deposit? With it in place, I will have exactly 20% so I can borrow 80% LVR.

  • Lenders have strict criteria regarding gifted deposit and will generally only accept a gift that comes from your parents. However, this isn’t a hard and fast rule. The banks will likely assess the closeness of your relationship with your friend and may require you to provide an explanation of your situation to the bank.

  • rungoo123

    I would like to invest in a stratum title unit with the help of a low doc loan. How much in total debts can the lenders accept to approve the loan?

  • Hi, most lenders prefer low doc borrowers with total debts under $1 million. A few select lenders though can allow loans of up to $2.5m per borrower group (e.g. a husband and wife’s total borrowings together). On a case by case basis, we can help investors to borrow more than $2.5m with some of our lenders but they would need to have significant assets and be borrowing a low percentage of the property value.

  • Brode

    I was told that I should go for some credit repairing before I apply for a mortgage. How does that help exactly?

  • Hey Brode.
    If you get your credit file fixed prior to applying for a home loan then the lender will be unaware about any problems (that have been repaired) that you may have faced in the past. This means that they will assess your loan application as if you have clear credit which would most likely result in an approval for your loan.

  • Joshua

    I have a lot of questions about your brokers and how you function. Is there any page that I can check out to clarify these or do I need to speak to one of you guys directly?

  • Hello Joshua,
    You can check out our FAQs page first to clarify any confusions regarding how we operate, what we do and how we can help. The page also includes a lot of additional info that you may find helpful. Here’s the link to the page:
    https://www.homeloanexperts.com.au/about_us/faq/

    If you’ve still got some unanswered questions or you’d like to discuss your personal situation and loan needs, please feel free to contact one of our home loan specialists on 1300 889 743.