Will Mortgage House Accept High-Density Apartments as Security for a Mortgage Loan?
Potential borrowers who are interested in applying for a mortgage loan with Mortgage House may wonder what types of security are accepted.
Yes, Mortgage House will accept high-density apartments as security for a mortgage loan. However, there are certain restrictions in place that a borrower must adhere to:
- The individual units must have a minimum living area of 40 square meters. Individual units measuring less than 40 square meters may still be considered if the unit is considered a good-quality residence, located in a high-demand capital city metropolitan area, and approved by a senior DLA holder
- The apartments valuation report is required to include sales evidence from outside of the development
- The borrower must have a strong asset position, be able to demonstrate that they have more than 20% equity in other forms of real estate or demonstrate a strong earning capacity with an NDI of at least 1.25x
- The borrower is required to have a reliable income stream and be able to finance the mortgage repayments without relying heavily on rental income obtained from the apartment complex
- The borrower is required to have a clear credit history
Additionally, properties that are located in Community Title Developments are also subject to adhering to restrictions that are similar to those of high-density apartments. If you are interested in learning more about acceptable security for mortgage loans or are ready to apply for a home loan, reach out to the professional Mortgage House lending specialists for additional information and specialized assistance through the loan application process.