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Home Loan Variable: 5.94% (5.95%*) • Home Loan Fixed: 5.79% (6.39%*) • Fixed: 5.79% (6.39%*) • Variable: 5.94% (5.95%*) • Investment IO: 6.19% (6.85%*) • Investment PI: 5.99% (6.61%*)

Difficult Home Loans in Australia

Recently we were helping a client buy a property in an Over-55 Complex – I don’t think they understood just how difficult home loans like this can be. A lot of lenders will just point-blank refuse to lend money on a property like this. 

So I started thinking of a list of the Difficult Home Loans to get in Australia. If you want a mortgage for a property with one of these attributes it will be harder than getting a ‘vanilla’ loan on a detached dwelling. The more of these boxes ticked the faster your lender options dry up. A lot of the time the lenders who specialise in these sorts of loans don’t directly deal with the public – they are only available through brokers. 


1. Over 55’s Properties


The lender is often concerned about the resale or leasing restrictions should you need to sell. For many lenders, it’s a hard no on this type of property. Generally speaking, 55+ communities require at least one resident in the home to be at least 55 or older and prohibit anyone 18 and under from living in the community, with certain exceptions as permitted by state and/or federal law.


2. Units with less than 50m2 of floor space


Smaller units have a very narrow market – which means, should the lender have to foreclose they are concerned about the small number of potential buyers that would be interested. An article from RayWhite® has a good read on this.


3. Within 50m Of High Tension Power Lines


Lenders routinely pass on these because if something happens with the powerline, the borrower might just walk away and leave the lender holding the bag with a property worth much less than the appraised value when it was purchased.


4. Company Titled (not strata titled)


Instead of owning the property directly, the owner owns a share in a company that owns the property. This can present problems with lenders, as some do not view shares as sufficient security for a loan. The shares are not readily transferable, as a share sale will usually need approval from the board of directors.

We do have lenders on our panel that can accept company title units as security for a home loan.


5. Studio Apartments


Studio apartments typically appeal to a specific demographic, such as singles, young professionals, or students. This narrows the potential buyer pool compared to larger properties that cater to families or individuals seeking more space.

Lenders may be hesitant to invest in studio apartments due to concerns about future resale value. These properties may have limited appeal to a broader range of buyers, making it more challenging to achieve substantial appreciation over time.


6. Serviced Apartments


These kinds of properties are tied to a separate business venture that can affect the value and saleability of the property.

Typically, these are tied to hotel chains and holiday apartment companies and often used for stu

Additionally, if the government decided to change its immigration policies, student accommodation could become significantly less economically viable.



While it’s not impossible to get finance for any of these types of properties, they are much harder to get finance for than the big standard 3 bedroom, brick veneer. They require knowing which lenders to approach and which ones will make you comply with exorbitant requirements in order to get your loan approved.

This is why it’s best to work with a mortgage broker who has a large panel of lenders they can approach and understands the best ones to work with for a property that will be difficult to secure finance on. To get help securing finance for a difficult property call 1300 661 211 or go to and we can make a time to talk.


Check out this article if you are planning to pay off your home loan earlier and save more!

7 Tips on How to Pay Off Your Home Loan Early and Save More than One Hundred Thousand Dollars in Interest

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