What our clients are saying

    "Marty was fantastic! We swore never to use a broker again after bad experiences with other brokers in the past, and our last loan we negotiated ourselves, however this time we needed a mortgage... " – Blake Millgate
    "It is impossible to exaggerate how highly I rate Mortgage Experts and my experience with Marty McDonald... " – Brendan Arlington
    "Mortgage Experts have provided a fantastic experience in an area that can be complicated and emotional. Marty was always clear and precise and always made time to discuss the matters at hand... " – Brett Parker
    "I was really impressed with Marty's services. He was responsive to emails and calls, considered a range of options, and kept me informed at every stage. He was also very patient... " – Elise Darsow
    "Marty was great to deal with. From initial contact to finding a perfect solution and strategy to our situation to then securing the funding in a tight time frame nothing was too much trouble... " – Nick and Blaise Porter
    "Great service! All the advice I've received in the past has been really helpful. Love the newsletters which keep me updated on developments in the market. Highly recommended! " – Nick Jolly
    "I have used Marty's mortgage brokerage service (Mortgage Experts). He has been professional, resourceful, gone beyond the call of duty in servicing my mortgage. He has been able to... " – Prithvi Moses
    "We’re both really happy to have been able to get this sale across the line and are particularly grateful for you finding us a way to make the finance work! Walking into our new home... " – Sarah Macdonald & Stewart Bovell
    "We found Marty McDonald from Mortgage Experts through a Google search because he had a hugely informative page about family trust loans. Choosing Marty as our broker was a huge blessing... " – Tracey Cools

Units on one title? 

Are you looking to purchase a property with more than one unit on title or perhaps looking to build one or more additional dwellings on one block? Many lenders have restrictions for residential loans on both the number of units they will finance on one title and the LVR they will allow for this. There are also different restrictions based on whether the properties are existing or to be built.

The more units on one title the harder it is to secure a residential loan (as opposed to commercial loan). We have a few lenders who will consider up to 6 established units on one title at 80% LVR or less. For construction the maximum would be 4 on one title with an LVR below 80% see below.

Multiple units on one title (established dwellings i.e. not construction)

If your proposal has more than 6 established units one one title it is definitely going to be classed as a commercial transaction. Here is guide to assist you in working out of your property would qualify for a residential loan. 

  • 2 units on one title - established dwellings - up to 90% LVR with lenders mortgage insurance.
  • 3 units on one title - established dwellings - up 90% LVR with lenders mortgage insurance.
  • 4 units on one title - established dwellings - up to 80% LVR 
  • 5 units on one title - established dwellings - up to 75% LVR 
  • 6 units on one title - established dwellings - up to 70% LVR
  • 7 + units on one title - established dwellings - this is classed as commercial

Multiple dwellings on one title (construction loans)

For residential loans most lenders will restrict the construction of multiple dwelling on one block (or on adjoining blocks) to 2 dwellings regardless of whether they will be subdivided or strata titled on completion.

We have at the time of writing access to 2 lenders who will consider the construction of 4 dwellings on one title. Please note this is not available for developers or builders, only legitimate buy and hold investors are eligible.

A maximum of 80% of land value & building contract amount would be the maximum LVR available. Please also read up about in one line valuations as this is likely to affect those seeking to minimise their equity contribution.

  • 2 units on one title - construction - up to 90% LVR with lenders mortgage insurance.
  • 3 units on one title - construction - up 90% LVR with lenders mortgage insurance.
  • 4 units on one title - construction - up to 80% LVR (valuations are done "in one line" meaning you will likely need a bit more equity)
  • 5 or 6 units on one title - construction - up to 60% LVR and strong applicant we may be able to get an exception for you but normally would be commercial finance only.
  • 7 + units on one title - construction - commercial finance only.

Valuations "in one line" and "land + building cost"

One important consideration is any proposal where there is more than 2 dwellings is likely to be the valuation. Properties will be valued "in one line" as one property rather than as 3 or 4 individual properties. This means you should expect a lower valuation than if each unit were valued independently as a separately sale able security. 

What if my properties are strata titled? Even if you have approval to strata title the properties at completion almost all valuers will adopt a discount on their valuation to account for the fact that this hasn't happened as yet. With a 4 dwelling valuation you would usually expect a discount in the vicinity of 25%.

The other consideration with valuations / construction loans is that lenders will adopt a maximum loan based on the sum of the land and construction value and applying their maximum ratio to that. For example say you buy land for say $1,000,000 with an old house on it (to be demolished) and then have a building contract for $1,000,000 to build 4 townhouses. You anticipate that each townhouse would be worth at least $600,000 on completion giving you a total value of $2,400,000. However you could expect the lender to adopt the value as 1) the land value "as is" (say $800,000 based on the valuers report) + 2) the $1,000,000 construction costs, giving them a total value of $1,800,000 to lend against. This is obviously well less than what the actual finished project would be worth. With a maximum LVR of 80% this would mean the maximum loan would be $1,440,000. The end result is a true LVR of about 60%.

Next steps

If you are an investor with a buy or build to hold strategy I'd love to hear from you to see if we can help with financing your property or project. Please call us or fill in the contact us enquiry form.

Our Current Lender Panel

Lex Luther Enterprises Pty Ltd (ABN 58114636949) trading as “Mortgage Experts” is an Authorised Credit Representative (444479) of Martin Warren Thomas McDonald, Australian Credit Licence (391230) under s64(1) of the National Consumer Protection Act 2009.