Can You Get a Home Loan for a Company Title Property?

Getting a Home Loan for a Company Title Property

Buying a company title property can be possible, but it is usually harder than buying a standard strata title unit.

Some lenders may consider company title properties. Others may not accept them at all, or may only lend at a lower LVR. The lender may also ask for extra legal documents, company records and valuation comments before deciding whether the property is acceptable security.

This can surprise buyers because many company title apartments look like normal units.

The issue is not always the property itself. The issue is the ownership structure.

This guide explains how Australian lenders may assess company title properties, based on current policy research.

What is a company title property?

A company title property is a property where ownership is linked to shares in a company rather than direct ownership of a specific lot under strata title.

With a standard strata unit, you usually own your individual lot and share common property with other owners.

With company title, the company owns the building or property. You buy shares in that company, and those shares give you the right to occupy a specific unit or apartment.

That means you may not receive the same type of title that a lender expects with a normal strata apartment.

Why company title properties are harder to finance

Company title properties can be harder to finance because the lender is not taking security over a standard residential title in the usual way.

A lender may be concerned about:

• how the ownership is structured
• whether the shares can be mortgaged
• whether the right to occupy is clear
• whether the company constitution is acceptable
• whether the property can be sold easily
• whether buyers need company approval
• whether the market for the property is smaller
• whether the valuation supports the purchase price
• whether legal advice confirms the security is acceptable

The lender’s concern is marketability and security. If the borrower cannot repay the loan, the lender wants to know the property can be sold and the security can be enforced.

Company title vs strata title

Company title and strata title are very different from a lending perspective.

A strata title property usually gives you legal ownership of a lot. This is the more common structure for units, townhouses and apartments.

A company title property usually gives you shares in a company that owns the building. Those shares give you occupancy rights to a specific unit.

The difference matters because lenders generally prefer standard, easily marketable residential security.

A strata title unit may be easier to finance because:

• the title is more familiar
• ownership is clearer
• resale is generally simpler
• most lenders understand the structure
• standard mortgage documents can usually be used
• buyers and valuers are more familiar with it

A company title unit may need extra review because the lender needs to assess both the property and the company structure.

Can you get a mortgage for a company title unit?

Yes, some lenders may consider a mortgage for a company title unit.

But the lender options may be more limited than for a standard strata property.

A lender may consider:

• the property location
• the property value
• the company title structure
• the company constitution
• share certificate details
• occupancy rights
• resale restrictions
• whether company approval is needed for sale
• whether the lender can take acceptable security
• whether the valuer supports the property
• whether the borrower has a suitable deposit

Some lenders may decline company title properties regardless of the borrower’s income or deposit.

Can you borrow 80% for a company title property?

It may be possible with some lenders, but 80% LVR is not guaranteed.

Company title properties often have lower maximum LVR limits than standard strata apartments.

A lender may reduce the maximum LVR because:

• the title structure is less common
• resale may be harder
• lender security may be less straightforward
• legal review is more complex
• mortgage insurer appetite may be limited
• valuation comments may be cautious
• the buyer market may be smaller

Some lenders may only consider company title at conservative LVRs, such as 60% or 70%. Others may go higher if the property and structure are strong.

Can you buy a company title property with a 10% deposit?

This can be difficult.

A 10% deposit usually means 90% LVR before purchase costs. That is already a high-LVR loan. With company title, many lenders may not be comfortable lending that high.

A small-deposit company title application may be harder if:

• lenders mortgage insurance is required
• the lender has a lower LVR cap
• the property is small
• the unit is in an older building
• resale restrictions apply
• the valuation report raises concerns
• legal documents are incomplete
• the buyer has limited savings

You may need a larger deposit than you would for a standard strata apartment.

Are company title properties accepted by mortgage insurers?

This depends on the mortgage insurer and lender.

If you borrow above 80% LVR, lenders mortgage insurance may apply. The mortgage insurer also needs to be comfortable with the property type.

Company title properties can be harder for mortgage insurers because the security is less standard.

A mortgage insurer may look closely at:

• title structure
• valuation
• location
• resale demand
• borrower strength
• LVR
• legal documents
• company constitution
• occupancy rights

If mortgage insurance is not available, the lender may cap the loan at a lower LVR.

What documents do lenders need for a company title property?

A company title property usually needs more documentation than a standard purchase.

You may need:

• contract of sale
• company constitution
• articles of association, if applicable
• company rules
• share certificate details
• occupancy agreement
• right-to-occupy documents
• company financial statements
• company minutes or approval documents
• details of levies or maintenance contributions
• building insurance evidence
• valuation report
• legal advice from your conveyancer or solicitor
• evidence that the lender can register or protect its interest

The lender may not provide full approval until the legal documents have been reviewed.

Why the company constitution matters

The company constitution sets out the rules for the company that owns the property.

A lender may review the constitution to understand:

• who can own shares
• whether shares can be transferred
• whether the lender can take security over the shares
• whether company approval is needed for sale
• whether there are restrictions on leasing
• whether there are restrictions on occupants
• how maintenance costs are handled
• what happens if an owner defaults on payments
• whether the right to occupy is clear

If the constitution contains unusual restrictions, the lender may become cautious or decline the property.

Can company title properties have resale restrictions?

Yes, some company title properties may have resale restrictions.

For example, the company may need to approve a new buyer before shares can be transferred. There may also be restrictions around leasing, occupancy, pets or renovations.

From a lifestyle perspective, these rules may or may not matter to you.

From a lending perspective, they can matter a lot.

A lender may be concerned if restrictions could make the property harder to sell later.

Restrictions may include:

• buyer approval by the company
• limits on renting the unit
• limits on short-stay letting
• owner-occupier-only rules
• age-based occupancy rules
• limits on renovations
• unusual transfer conditions
• restrictions on mortgage security

The more restrictive the rules, the more careful the lender may be.

Can you rent out a company title property?

Sometimes, but it depends on the company rules and lender policy.

Some company title buildings restrict leasing or require company approval before the unit can be rented out.

If you are buying the property as an investment, this is important.

A lender may ask:

• is leasing allowed?
• is company approval required?
• are there limits on lease length?
• are short-stay rentals banned?
• is a rental appraisal available?
• will the rental income be accepted?
• does the valuation mention leasing restrictions?

If the property cannot be rented freely, it may affect both borrowing power and lender appetite.

Can first-home buyers buy company title units?

Yes, first-home buyers may be able to buy company title units, but they should be careful.

Company title properties can sometimes be cheaper than comparable strata apartments. This can make them attractive for first-home buyers trying to buy in an expensive suburb.

But the lower price can come with trade-offs.

First-home buyers should check:

• whether finance is available
• what deposit is required
• whether the lender accepts company title
• whether grants or concessions apply
• whether resale restrictions exist
• whether the property can be rented later
• whether the building has strong financial records
• whether the company rules suit their plans
• whether the property will be easy to refinance later

A cheaper purchase price does not always mean an easier loan.

Can investors buy company title properties?

Yes, investors may be able to buy company title properties, but the application can be more complex.

A lender may review:

• whether leasing is allowed
• rental appraisal
• company rules
• property marketability
• LVR
• borrower income
• valuation comments
• body corporate-style costs
• company financial position
• whether the property is standard residential use

Investors should also check whether the company allows tenants, because some company title buildings have owner-occupier restrictions.

Are older company title apartments harder to finance?

They can be.

Many company title buildings are older apartment blocks in established suburbs. Older buildings are not automatically unacceptable, but lenders and valuers may look more closely at condition and maintenance.

A lender may consider:

• building age
• maintenance history
• company finances
• insurance
• special levies
• structural issues
• market appeal
• recent comparable sales
• whether the building is well managed
• whether the unit is easily saleable

If the building is poorly maintained or has limited buyer demand, the lender may reduce LVR or decline the property.

Can you refinance a company title property?

Yes, refinancing a company title property may be possible with some lenders.

A refinance may be considered if the lender accepts the title structure and the loan fits policy.

The lender may review:

• current loan conduct
• property value
• company title documents
• share ownership details
• occupancy rights
• valuation
• loan purpose
• cash-out amount, if any
• borrower income
• LVR

Refinancing may be harder if your current lender is one of the few lenders comfortable with company title. It may also be harder if the property value has not increased enough to reduce the LVR.

Can you access equity from a company title property?

Possibly, but equity release can be more limited.

A lender may be cautious with cash out because company title security is less standard.

The lender may ask:

• what is the purpose of funds?
• how much equity is available?
• what is the current LVR?
• is the property easy to value?
• does the company structure allow the lender’s security?
• will the loan remain within policy?
• does the borrower have strong income?

Cash out may be more realistic at a conservative LVR.

Does the valuation matter more with company title?

Yes, the valuation is very important.

The valuer may comment on:

• company title structure
• marketability
• comparable sales
• building condition
• sale restrictions
• leasing restrictions
• demand for the property type
• estimated value
• risk factors

A lender may rely heavily on the valuation when deciding whether to accept the property and what LVR to allow.

Even if the borrower is strong, negative valuation comments can affect approval.

What if the property is also small or unusual?

Company title can become harder if the property has another non-standard feature.

For example, the property may also be:

• under 50 square metres
• a studio apartment
• in a high-density building
• in an older building
• subject to leasing restrictions
• in poor condition
• on a busy road
• affected by structural issues
• located in a low-demand area

Each additional risk factor can narrow lender options.

A company title studio apartment under 40 square metres may be much harder to finance than a larger company title unit in a strong location.

Should you sign a contract before checking finance?

Be careful.

Company title properties should be checked before signing an unconditional contract.

A pre-approval based on your income does not always mean the lender will accept the property.

Before signing, consider:

• asking your broker to check lender policy
• getting the company title documents early
• asking your conveyancer to review the structure
• checking whether the lender accepts company title
• confirming the likely maximum LVR
• including a finance clause where possible
• avoiding assumptions based on strata-title lending

The property itself can be the issue, even if your income is strong.

What should your conveyancer check?

A conveyancer or solicitor should review the legal structure before you commit.

They may check:

• company constitution
• share ownership
• right to occupy the unit
• transfer process
• company approval requirements
• restrictions on sale
• restrictions on leasing
• repair and maintenance obligations
• company financial position
• insurance
• levies or contributions
• dispute history, where available
• whether the structure suits your plans

Legal advice is especially important because company title is different from standard strata title.

10 common mistakes buyers make with company title properties

1. Do not assume company title is the same as strata title.
2. Do not assume every lender accepts company title.
3. Do not rely on pre-approval without checking the property.
4. Do not sign an unconditional contract before lender policy is checked.
5. Do not ignore the company constitution.
6. Do not assume 90% or 95% lending is available.
7. Do not forget to check leasing restrictions.
8. Do not assume the property will be easy to refinance later.
9. Do not rely only on the selling agent’s view of financeability.
10. Do not ignore valuation comments.

How to improve your chances before applying

Before applying for a company title property loan, it helps to prepare the documents and lending position early.

Useful steps include:

• confirm the property is company title
• get the company constitution
• collect occupancy or right-to-use documents
• ask for share certificate details
• check leasing restrictions
• check resale restrictions
• ask your conveyancer to review the structure
• confirm the likely maximum LVR
• prepare a larger deposit where possible
• collect income and savings documents
• check the property size and condition
• compare lender policy before submitting the application

The goal is to confirm both the borrower and the property fit lender policy before you commit.

Should you avoid company title properties?

Not always.

A company title property may still be worth considering if:

• the location is strong
• the price is attractive
• the building is well managed
• the legal structure is clean
• lender options are available
• you have a suitable deposit
• resale demand is reasonable
• the rules suit your plans

But it may be less suitable if:

• you need a very high LVR
• you want to rent it out but leasing is restricted
• you need broad lender choice
• you may need to refinance soon
• the company documents are unclear
• the property is also small or unusual
• you do not understand the legal structure

The right answer depends on the property, the rules and your finance position.

Example scenarios

Scenario 1: Established company title apartment

You are buying a company title apartment in a strong inner-city suburb.

The building is well managed, the unit is marketable and you have a 30% deposit.

Some lenders may consider the loan if the documents and valuation are acceptable.

Scenario 2: Company title with 10% deposit

You want to buy a company title unit with a 10% deposit.

This may be difficult because many lenders may not allow high-LVR lending for company title properties.

Scenario 3: Company title investment property

You want to rent out a company title apartment.

The lender and conveyancer may need to check whether leasing is allowed under the company rules.

Scenario 4: Company title studio apartment

You are buying a small company title studio.

This may be harder because the property combines two risk factors: company title and small apartment size.

So, can you get a home loan for a company title property?

Yes, you may be able to get a home loan for a company title property, but lender options are usually narrower.

The strongest applications usually have:

• clear company title documents
• acceptable right-to-occupy structure
• strong location
• marketable property
• clean valuation comments
• suitable deposit
• conservative LVR
• stable income
• clean credit history
• a lender whose policy accepts company title

Company title properties can be financed, but they need to be checked carefully before you sign a contract.

Need help buying a company title property?

A mortgage broker can help compare lenders that may accept company title units, older apartment buildings, non-standard titles and lower-LVR property purchases.

We can review the property type, title structure, deposit, LVR, income and lender options before you apply.

If you are buying a company title apartment, speak with a mortgage broker and conveyancer before signing an unconditional contract.