Is your property acceptable for
lending purposes?

  • All of sudden, did your pre-approval turn into a decline because of your property choice?
  • Is the bank now asking for a larger deposit or no longer offering you a residential interest rate?
  • We can help you minimise the deposit contribution required regardless of the property you choose
  • We specialise in obtaining competitive residential interest rates
  • We work with all property types and get you approved where others cannot.

Restricted Property Types

The key is to make sure you find the right lender that accepts your property type. However it can be quite difficult because all lenders have different requirements and limitations.

Studio
Apartments
Inner City
Units
Rural Property/
Hobby Farms
Mining Town
Property
Purchasing A Family
Owned Property

Looking to buy a studio apartment? Ultimately, the amount you can borrow will be determined by the size of the property.

What is considered a studio apartment?

Most lenders consider an apartment with no walls separating the living room, kitchen and bedroom to be a studio apartment. If your property has walls separating the living room, kitchen and bedroom then this will most likely be classed as a one bedroom unit and will make getting your application approved easier!

Size matters

If your studio apartments internal space is under 50m2 it may be difficult to get love from the lenders. However, we do have some lenders that will approve your application provided you have a healthy deposit.

Studio apartment size Guidelines

Under 18m2 - Generally unacceptable.
18m2 to 40m2 - You can borrow 80% of the property value
40m2 and above- You can borrow 95% of the property value

The above guidelines are for internal spaces. There are some lenders that will consider including the balconies and car spaces in the total size which can allow you to borrow more.

Inner City Units are also known as High Rise Apartments and High Density Properties. The amount you can borrow will be determined by the postcode of the property, the size of the property, the number of units and the number of levels in the block.

What is considered a inner city unit?

Inner City Units are usually identified by banks as a unit located in a particular postcode range around the CBD of capital cities.

How much can I borrow?

Most lenders will restrict the amount you are borrowing to 80% or less for Inner City Units. There are only two lenders that will approve up to 95% of the property value!

Common suburb restrictions
New South Wales
  • Sydney
  • Kings Cross
  • Liberty Grove
  • Haymarket
  • Wolli Creek
  • Sydney South
  • Potts Point
  • Rhodes
  • Millers Point
  • Turrella
  • Darling Harbour
  • Rushcutters Bay
  • Homebush
  • The Rocks
  • Asquith
  • Dawes Point
  • Woolloomooloo
  • Homebush South
  • Darlinghurst
  • Elizabeth Bay
  • Surry Hills
  • Waterloo
  • Homebush West
  • Hornsby Heights
  • Hornsby
  • Taylor Square
  • Zetland
  • Arncliffe
  • Waitara
  • Concord West
Victoria
  • Melbourne
  • World Trade Centre
  • Southbank
  • Docklands
South Australia
  • Adelaide City
  • West Campus
  • Halifax Street
  • Hutt Street
  • Rundle Mall
  • Station Arcade
  • Sturt Street
  • The University of Adelaide
Western Australia
  • Perth
  • Highgate
  • Northbridge
  • East Perth
  • Kings Park
  • West Perth
Tasmania
  • Glebe
  • Hobart
  • Mount Stuart
  • North Hobart
Northern Territory
  • Darwin
Queensland
  • Brisbane
  • Petrie Terrace
  • Spring Hill
  • City East
  • Wintergarden

Rural Properties and Hobby Farms are becoming increasingly popular! Many Australians are now leaving behind the busy city life and opting in for the rural lifestyle! The amount you will be able to borrow for Rural Properties and Hobby Farms are usually determined by the land size, location, access to the property, services available, zoning and land usage.

What is considered a Rural Property or Hobby Farm?

Generally most lenders consider a rural property or hobby farm to be a property that is mostly for personal use rather than income producing reasons. Most properties can be between 10-100 hectares and usually will consist of a property to live in.

Land sizes

10 - 50 hectares: Maximum borrowing of 95% and restricted lender options
50 - 121 hectares: Maximum borrowing of 80% and restricted lender options
121 hectares plus: Maximum borrowing of 60% and restricted lender options.
These farms are generally considered income producing, we may be able to help with a commercial loan.

Location restrictions

Usual location and postcode restrictions apply with most lenders, however there is also one lender that is less conservative and will accept most locations.

Access to the property

The property must be easily accessible by an all weather road. Dirt roads are also acceptable, however they must be well maintained.

Services

The property needs to be connected to the electricity grid and should have access to water and sewerage. Tank water and septic tanks are also acceptable.

Acceptable zoning

The land can be Rural and Rural Residential zoning or the applicable state equivalent.If the land is zoned Industrial, commercial or for farm use then it may not be acceptable, however we may still be able to help you with a commercial loan.

Land use

The land should be used for personal or investment purposes, not as a farm. Hobby farms with minor farm improvements and no income from farm production are usually accepted.

If you are looking to finance a property located in a mining town the amount you will be able to borrow will be determined by the ongoing nature of the mining activities or the economical viability of the town without the mining activities.

What is considered a mining town?

A mining town, also known as a mining community and mining camp, is usually identified as a property that is located in a town that generates the majority of its economic viability through mining activities.

Location restrictions

Where a mining town has a population of less than 10,000 many lenders will restrict the maximum borrowing to 80% of the property value, however there are some lenders that are more flexible with mining town locations and you may still be able to borrow up to 95%.

Rental income

Most lenders will use a smaller percentage of any rental income that is received from a property located in a mining town when calculating your borrowing capacity. This is usually 60% of the actual rent! There are some lenders that will consider using a higher income from the rental property on a case by case basis.

Concentration risk

If you own or want to purchase multiple properties in a mining town most banks will be unwilling to approve your application. This is considered as a big risk by the banks. However, if you spread the risk between different lenders there may still be a good chance of getting your loan approved. Please note that owning multiple properties in the same mining town would also be risky for you. We recommend you obtain independent financial advice and generally recommend against it.

Parents helping their children with purchasing an existing family owned property is becoming quite common. There are also times where children purchase from their parents to help them with the debt. This is usually because the parents have either retired or can no longer afford the repayments on the property. These purchases are generally below market value.

How much can I borrow?

Depending on the value of the property and the agreed purchase price you may be able to borrow up to 105% to cover the full purchase price and all associated costs!

What to look out for

Most lenders will not accept these types of purchases. They are deemed as "favourable purchases" and the banks consider the transactions to be high risk. The banks that will consider favourable purchases are likely to assess the application in a lot more detail to minimise their risk.

Stamp Duty

An important issue to note is regardless of what your agreed purchase price on the property is you will need to pay stamp duty on the actual value of the property.

Display
Homes
Duplex Off The Plan
Purchases
Multiple Units
On One Title
Vacant Land

The amount you can borrow for display homes will be determined predominantly on the leaseback conditions. As a general rule the more restrictive the terms are the harder it will be to secure long term tenants and this is considered a big risk for the banks.

Generally you can borrow 80% of the property price, there are some lenders that will consider 90% and if there is no leaseback agreement you can borrow up to 95%.

What is considered a duplex?

The banks identify a duplex as a residential building containing two homes that share a common central wall. This can include homes that have been renovated with extra walls and entrances to separate them into two different properties.

How much can I borrow?

Generally most banks will lend up to 95%. Strangely though some banks are extremely conservative with Duplex's and will limit the borrowing to 80% and below! This is applicable for both a completed duplex or a construction project.

Off the plan purchases are usually committed to before construction has commenced on a property. These purchases are very popular with both property investors and first home buyers. The completion period for off the plan purchases can be anywhere from 6 months to 3 years.

How much can I borrow?

Generally most banks will lend 95% of the purchase price. The amount you borrow will be determined by the property location and type of project. For example if you are buying a serviced apartment you may be restricted to a maximum borrowing of 80%. We would recommend you discuss the type of property you are purchasing with a Mortgage Pro before committing to the purchase.

When can I get a home loan approval?

You can obtain pre-approval for the purchase of your off the plan purchase anywhere between 3 - 18 months before completion. It is important to keep in mind that any changes to your financial circumstances may invalidate the pre-approval. A Mortgage Pro will be able to guide you on how to ensure your pre-approval will still be valid come time when the property has been completed. We can also ensure your deposit will be safe by obtaining a 17 month formal approval with one of our banks!

Will the bank use the purchase price or the valuation?

Its very likely that your property can rise in value between the time that you sign the contract and it's time to settle. In the event that the price has increased most banks will still use the contract price to determine your maximum borrowing. There are some banks that will however use the valuation or market value. This is a huge advantage and may be able to save thousands on LMI, help you with negotiating your interest rate and in some cases even help leave you with funds left over at settlement.

What if the valuation does not come back at the purchase price?

Not the most ideal situation! It's important to keep in mind though that this can happen. In this situation Mortgage Pros will be able to arrange multiple valuations with different banks that you may qualify with to determine the best situation to allow you to complete the property purchase. If you are in this situation at the moment we would highly recommend you contact us to discuss your options.

What are the benefits of investing in multiple units on one title?

With the growing property market, multiple units on one title is quickly becoming one of the fastest growing investment strategies. With no surprise investors are reaping the many added benefits! Whether it be the higher rental yields, especially in the higher price ranges, double digit jumps in capital growth after subdivision or versatility of being able to structure the investment as a short term or long term strategy, people are making big money from multiple units on one title.

What are multiple dwelling on one title?

Multiples units on one title refers to when there is more than one dwelling, this can be a house, unit, villa or townhouse, registered to the single title. For example duplexes, triplexes, 4 to 6 townhouses on one title are most common.

What are my options?

One of the biggest costs and pitfalls with multiple units one title is getting the financing right. Few banks accept anything more than 2 units on one title. Most refer it to the commercial department which means a bigger deposit of 30% and above, higher repayments due to the 15 year loan term and more in interest with commercial rates averaging to be at least 1% to 2% higher.

Mortgage Pros are multiple units on one title specialist. We understand how to maximise your return, by securing competitive interest rates and minimising your deposit contributions. We work tirelessly to present you case in way where you will be approved at the lowest rate for your situation with the optimal structure to maximize your return.

How much can I borrow?
Number of units
on one title
How much
can I borrow?
Interest
Rate
295%Discounted Residential
395%Discounted Residential
495%Discounted Residential
5 to 1065%Discounted Residential
10 and above65%Negotiated Commercial

Borrowing to purchase vacant land can be more difficult than purchasing a house. The banks will look to evaluate a number of risks including the land size, location, access to the property, services available, zoning, usage of the land and your intention to build!

How much can I borrow?
HectaresAcresMaximum BorrowingNote
Up to 2.2 hectares(5.4 acres)Up to 95% of the property value.Acceptable by most lenders
Up to 11 hectares(27.2 acres)Up to 95% of the property valueMost lenders are restricted to 80%
Up to 60 hectares148.3 acresUp to 80% of the property valueMost lenders will decline your application
Over 60 hectares148.3 acresUp to 70% of the property valueAssessed on a case by case basis
Commercial farms:No limitsUp to 60% of the property valueAssessed on a case by case basis

If there's a house on the block: If there's a house on the land already, then you may be able to borrow 95% of the property value for properties up to 50 hectares in size.

Other Restricted
Property Types

There are countless weird and wonderful property types out there. Unfortunately though more than likely most banks will have a problem with them! To name a few more see below:

  • Company Title
  • Serviced Apartments
  • Hotels
  • Student Accommodation
  • Warehouse Conversion
  • Stratum Title
  • Bed & Breakfast Loan
  • DHA Home Loan
  • Display Home Mortgage
  • Dual Key Apartment Mortgage
  • Flood Zone Home Loan
  • Heritage Listed Property Loan
  • Island And Water Access Property
  • Kit Home Loans
  • Mixed Use Property Loan
  • NRAS Finance
  • Over 55s Village Mortgage
  • Snow Lease Home Loan

We at Mortgage Pros love anything outside the box, give us a call and we'll work with you to get the right loan approved!

  •  We were looking to get our next investment property and wanted to get the best deal. We spoke with two of the very large mortgage brokers and were pre-approved. A friend recommended we also speak with Mortgage Pros so we met with the guys and lucky we did!.

    They managed to refinance our existing property and give us money to fund our next purchase. The process was so easy. They also managed to get us a discount below the banks advertised rate! I cannot recommend Mortgage Pros enough. Thank you team and we look forward to working with you again for our next property purchase.

    Bilal and Jowan
  •  My circumstances were a little out of the box! I actually work for a bank as a branch manager so I feel like the dentist that recommends tooth paste in the the television advertisements by writing this recommendation! I had been working with the bank for over 10 years, however had recently moved into a new role and was subject to a 3 month probation period.

    The bank I work with declined my application on this basis alone even though I had a 20% deposit! Frustrated with my circumstances I did some research and came across the Mortgage Pros website! A quick phone call and I was reassured that I would most likely be eligible with a major bank! The end result was a pre-approval within 2 business days at a much lower rate than my own bank and also lower than the recommended banks advertised rates ! These guys are certainly pros! Thank you

    Naj
  •  Just wanted to say a very big thank you to Mortgage Pros! They were able to get us the approval without the need for a deposit in 24 hours. With their help we were able to make it just in time for auction. They also got us a better rate than all our family and friends!

    Peter Ha and Ashley Xu
  •  Mortgage Pros are superstars. Westpac had declined my loan for my next investment venture to buy 5 units on one title. I called Mortgage Pros and from there it was just magic. Not only did they get me a quick approval but they also negotiated a further interest rate discount for my other 6 investment properties. Mortgage Pros saved me thousands!

    Philip Cao

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