Understanding Property Acceptance 

Securing a loan involves more than just applying; it’s about ensuring your property meets the criteria set by lenders. Here’s a breakdown of acceptable and unacceptable properties for low doc loans. 

A – H: From Company Titles to High-Value Luxuries 

Company Title 

Low Doc: Borrow up to 80% of a company title unit’s value. 

• Insight: Company title units, common in pre-1970s blocks, pose challenges due to shared ownership. Most lenders hesitate due to approval complexities. 

Flood-Affected Areas 

Low Doc: Borrow up to 80% for houses in flood-prone regions. 

• Insight: Lenders cap risk at 1 in 100-year flood zones, avoiding areas with frequent flooding. Exceptions for properties with specific conditions. 

Heritage Listed 

Low Doc: Borrow up to 80% for heritage-listed houses. 

• Insight: Historical importance increases risk for lenders; valuing such properties can be tricky. Expect conservative evaluations. 

High-Value Luxury Properties 

Low Doc: Borrow up to 60% for luxury properties exceeding $3,000,000. 

• Insight: High-value properties in affluent suburbs pose valuation uncertainties. Most lenders limit loans to 60% for stability. 

Hobby Farms 

Low Doc: Borrow up to 80% for hobby farms. 

• Insight: Size limitations apply, with 2 hectares being common. Usage matters; personal or investment purposes are acceptable. 

Holiday Rental 

Low Doc: Borrow up to 80% for holiday rental properties. 

• Insight: Riskier due to fluctuating rental income and location-dependent demand. Loan terms vary based on property type and location. 

Hotel/Motel Unit 

Low Doc: Borrow up to 60% for hotel/motel units. 

• Insight: Investment-only restriction for hotel-apartment arrangements. Potential for 60% LVR on good-quality converted units. 

I – P: Inner City Challenges to Properties in Bad Condition 

Inner City Apartments 

Low Doc: Borrow up to 80% for inner-city apartments. 

• Insight: Postcode, density, and demand concerns influence loan limits. Some lenders may stretch to 80%, but 60% is common. 

Island Properties 

Low Doc: Borrow up to 80% for island properties. 

• Insight: Restrictions for non-bridge-connected islands due to lower demand. Exceptions for specific islands on a case-by-case basis. 

Landslip Prone Areas 

Low Doc: Borrow up to 80% for landslip-prone areas. 

• Insight: Varies based on property-specific risks. Some properties are outright unacceptable. 

Mine Subsidence Districts 

Low Doc: Borrow up to 80% for properties in mine subsidence districts. 

• Insight: Riskier due to potential land instability; may require mine subsidence board evidence for approval. 

Multiple Units on One Title 

Low Doc: Borrow up to 60% for up to four units on one title. 

• Insight: Dual occupancies have limited acceptance; favorable terms for 5 or more units might require commercial low doc loans. 

Off the Plan Units 

Low Doc: Borrow up to 80% for off-the-plan units. 

• Insight: Conservative approach; final approvals often delayed until construction completion. Limited lenders consider low doc for such units. 

Postcode Restrictions 

Low Doc: Borrow up to 80% for properties in restricted locations. 

• Insight: Location guides govern loan limits; some lenders consider up to 80% in remote areas. 

Properties in Bad Condition 

Low Doc: Borrow up to 80% for properties in poor condition. 

• Insight: High demand in a location can influence acceptance, even for properties in need of repair. Critical to secure approval before committing to purchase. 

Q – Z: Retirement Units to Warehouse Conversions 

Retirement Units / Over 50s Villages 

Low Doc: Borrow up to 60% for retirement units. 

• Insight: Acceptance varies with unit type; leasehold retirement units might require additional security or a guarantor. 

Second Mortgage 

Low Doc: Generally not available; consider no doc loans for standard residential properties. 

No Doc: Borrow up to 80% for standard residential properties. 

• Insight: Prime lenders resist low doc second mortgages; private lenders may consider but at higher costs. 

Serviced Apartments 

Low Doc: Borrow up to 60% for serviced apartments. 

• Insight: Management agreements, high fees, and limited resale potential make these higher-risk; loan terms vary. 

Studio Apartment / Bed-Sitter 

Low Doc: Borrow up to 60%, possibly 80%, for studio apartments. 

• Insight: Smaller units pose higher risks; acceptance based on size and lender policies. Limited options for units under 40m². 

Vacant Land 

Low Doc: Borrow up to 80% for vacant land. 

• Insight: Restrictions based on size and accessibility; construction commencement conditions may apply. 

Warehouse Conversion 

Low Doc: Borrow up to 80% for residential units in warehouse conversions. 

• Insight: Appeal to a niche market; loan limits may be influenced by the property’s broad market acceptance.