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Charles Q.
Charles Q.
Homebush, NSW

I’d like to ask if there a limit to the number of units on the one title lenders will look at? If it was 10 units would it be considered a residential or commercial loan? Thank you

7 years ago


Hi Charles,
Each lender will have different 'acceptable security' requirements.

Generally, any single title with more than 4 units on it would be deemed a specialised or commercial security by most lenders.

In saying that, most of the commercial lenders are still quite competitive when it comes to rates. The main issue my clients have had with this type of security in the past has been the lower LVR requirements.

I hope this helps.

Hi Charles,

Great question - most mortgage brokers can give you specific details on which lender will be suitable depending on the number of units on title.
As a general rule most lenders will lender on up to 3 units on 1 title without to much difficultly, several will lend on four and there are a couple who will do up to 6 at a reduced loan to value ratio.
Beyond 6 units on 1 title there really only is the option of going through commercial lending channels.
With commercial loan however the rates are now very close to the residential lending rates due to the loading of interest rates for investment and interest only repayments.
Hope this helps

7 years ago

Thanks Scott, can I ask what would be the maximum LVR would be and can you give me an idea of the rates?


Hi Charles,

As mentioned, this will vary from lender to lender, although a rough guide would be about 65% LVR without Lenders Mortgage Insurance.

The rates will depend on the strength of your application and also the risk of the security, not to mention the product type as well. The rates can vary from mid 4%'s and up. We would need to have a more holistic conversation to find out what products and rates we could find you.

If you would like to have a chat, please let me know.

Hi Charles, further to the previous answers, if the property is deemed commercial for lending purposes be aware of the maximum term of the loan as this could push up your minimum repayments. Some will do 25 year terms such as Adelaide Bank. There are also several competitive second tier lenders hungry for the business. Although the rates may be similar, the term available may vary. Lending will usually be between 60 - 80% but speak to a specialist Mortgage broker to investigate specific lenders, terms and conditions.

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