18 Nov 2022

Will Mortgage House Accept a Boarding House as Security for a Mortgage Loan?

Mortgage House Low Doc Remortgage

Potential borrowers who are interested in applying for a mortgage loan with Mortgage House may want to learn more about the various types of security that are accepted. Mortgage House will accept a boarding house as security as long as the boarding house is able to be easily converted back to residential use without needing considerable alterations. We require that the property undergoes a valuation to be sure. Evidence confirming that the property complies with all licensing requirements if rented to be included in the servicing calculation must be held. This type of security requires the loan application to be approved by a senior DLA holder. 

Boarding houses are described as being short-term housing solutions in Australia. Boarding houses are generally fully furnished and offer daily rates to their tenants, resulting in high turnovers, higher administration costs, and higher maintenance costs. 

Mortgage House also accepts a wide variety of properties as security for mortgage loans, including the following examples:

  • High-density apartments (with restrictions)
  • Serviced apartments (with restrictions)
  • Boarding houses (with restrictions)
  • Properties located on islands (with restrictions)
  • Multiple purposes residential or shop properties (with restrictions)
  • Residential properties (with restrictions)
  • Display homes (with restrictions)

Upon applying for a mortgage loan with a boarding house as security, Mortgage House will evaluate the property, and look into industry trends, the property’s location, forecasts, vacancy rates, and income streams. 

In conclusion, Mortgage House will accept boarding houses as security for a mortgage loan under certain restrictions. If you would like to learn more about applying for a mortgage loan, reach out to the Mortgage House lending specialists for additional information and assistance.

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