Can someone please identify this for me as i am currently overseas and am having difficulty, but have found an interesting deal.
Its 4 units, group titled (all on one title) in Victoria.
Can i do a normal lend on this or does it require a commerial loan? Or is it different with different banks.Cheers
KevThe problem you have with 4 units on one title as most lenders see it as unacceptable security. Mortgage insurers wont touch them, so if you are purchasing security such as this, the maximum loan amount is 80% and you must use a lender that doesn’t securitise (where all loans, no matter what the amount are mortgage insured). This sought of property can’t be used as security for a lo doc loan. Some lenders will also see it as a commercial loan.
State Manager
0425 358 293Wholesale Mortgage Lender that deals only with brokers.
20 years in Finance Industry
With most lenders they will request that when you get finance that prior to settlement that the property be taken under seperate titles on the four units. As it exceeds the 3 units maximum where I work it is classed as a unit development site and requires a different avenue to lending. If you want I can get some further information for you as I currently work for a non-conforming lender who deals with these situations, but it is not my department.
Where Australia goes for Mortgage Finance
The lenders who request this prior to settlement are basically saying they will not do company title. I don’t see the point in such a request. The borrowers can go elsewhere.
By the way, seeing we are divulging all information so people can go direct and not use brokers, St George will do four on one title. It is very common for them subject to normal lending requirements (ie: serviceability, funds position, etc). They will even do it as a low doc at lower LVRs.
Robert Bou-Hamdan
Mortgage AdviserHi Kev,
No need for commercial rates, ANZ will do 4 units on 1 title, and as Rob mentioned St George will also do them and at residential rates,
I am currently doing a 5 on 1 title for a client at residential rates. Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
I was under the impression that 4 units on one title (not company title) is a usual vanilla deal for lending. Commercial is only if it is above 4 units? s that right?
kay henry
Sorry about the company title comment.
4 units on 1 title has never been a ‘vanilla’ deal. The majority of lenders won’t touch these as residential but will consider them as commercial. 3 units and below is the safe benchmark.
The reason behind this is that the demand is lower for 4 on 1 title and they are sometimes very difficult to get comparable sales for purposes of valuation. Changing the title on these costs nothing compared to the increased value that usually comes with a conversion to strata title.
Robert Bou-Hamdan
Mortgage Adviser
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