Will Mortgage House Accept a Boarding House As Security for a Mortgage Loan?
An Australian boarding house is a short-term housing solution. It’s furnished and only offers daily rates. This means that there’s a constant turnover in tenants and higher administrative costs. Since tenants change daily, accommodation incurs higher maintenance costs, too.
Industry insiders view the boarding house option favourably because it’s homelike. The washing machine and dryer are shared among the tenants, but the kitchens are often fully equipped.
Mortgage House will work this property as collateral to secure a housing loan. We use our tools to evaluate the property. Our team also looks into industry trends, forecasts, and the property’s location. We’re mostly concerned with the vacancy rates because it impacts the property’s ability to produce an income.
The property’s value is going to fluctuate. We want to assess if the housing option has the ability to raise its value back up despite economic circumstances. Plus, we want to ensure its value covers at least 20% of the new loan’s value.
You can rest assured that we’ll give the property and your application the attention it deserves. We have a reputation for being forward-thinking and innovative. You may simply need a refinance home loan option.
Boarding House Conclusion
For individuals who require a short-term housing solution in Australia, the boarding house at their disposal. This option can also be used as collateral to secure a home loan with Mortgage House. We’ll go through the application and evaluation process to complete our due diligence. Based on our findings, we’ll give you loan terms and an offer. In cases where the math doesn’t work out, our loan specialists will offer alternative solutions.