Acceptable Properties



Property can be considered as acceptable or unacceptable security for a lender

Some bank might not lend you money (or lend you less) to purchase a particular type of property. This is because that bank will not consider that property as an acceptable security / collateral. It is always wise to verify what can be considered as an acceptable security. What is considered acceptable by a bank, it might not be considered by another one. In some cases, it might have an impact on the maximum acceptable LVR, which represents the portion of the loan size in relation to the property market value. In other words, you could still borrow, but less. That means that even if you bank does not lend you money for that property, another one might. An expert advice becomes crucial as only some bank might lend you what you need to buy that type of property. This is because lenders’ policies are different and only an expert Mortgage Broker can master them.

Important characteristics to consider to define an acceptable property type:

  • Studio apartment
  • Serviced apartment
  • Vacant land
  • Off the plan unit
  • Display home
  • Hobby farm
  • Boarding house & new generation boarding house
  • Post code restriction
  • Size of the land
  • Type of title (stratum title, company tile, etc.)
  • Heritage listed
  • Bush fire or flood zoned properties
  • Rural property
and many more…


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