Getting a Home Loan for Community Title Property

Yes, you may be able to get a home loan for a community title property in Australia, but lender treatment is not always the same as standard Torrens title or ordinary strata title.

Some lenders accept community title, group title or cluster title as acceptable residential security. Some may allow high LVRs where mortgage insurance is available. Others may cap the LVR, require closer valuation review, or treat community title as unacceptable security.

The key issue is whether the lender considers the property readily saleable, standard residential security and able to be mortgaged under normal residential lending policy.

This guide explains how Australian lenders may assess community title property home loans, based on current policy research.

What is community title?

Community title is a property ownership structure where you own your individual lot and share responsibility for common property or shared infrastructure within a community scheme.

A community title development may include:

• freestanding houses
• townhouses
• villas
• duplex-style homes
• residential lots in an estate
• shared roads or driveways
• shared gardens
• common recreational areas
• community facilities
• shared services or utilities
• community association rules

Community title can look similar to strata, but the legal structure and shared obligations may differ.

Can you get a home loan for community title property?

Yes, some lenders will consider community title property.

A lender may approve a community title home loan if:

• community title is an acceptable security type
• the property is used for residential purposes
• the title can be mortgaged
• the property is readily saleable
• the valuation is acceptable
• the LVR fits policy
• mortgage insurance is available, if needed
• common property obligations are not excessive
• community fees are included in expenses
• the borrower’s income and credit position are acceptable

Community title is not automatically a problem, but it should be checked before signing a contract.

Do all lenders accept community title?

No.

Lender policy varies.

Some lenders specifically list community title, group title or cluster title as acceptable.

Some lenders accept community title with LVR limits.

Some lenders may allow community title up to 95% with mortgage insurance for owner-occupied and investment loans.

Other lenders list community title as unacceptable security.

This is why community title properties should be checked with the lender before relying on a pre-approval.

Is community title the same as strata title?

No.

Strata title usually applies to units, apartments, villas or townhouses where owners share common property through an owners corporation or body corporate.

Community title usually involves ownership of an individual lot within a broader community scheme, with shared ownership or obligations over common property.

The differences may include:

• how common property is owned
• how levies are raised
• whether roads are public or private
• whether shared facilities exist
• what by-laws or management statements apply
• how insurance is arranged
• who maintains common areas
• whether the scheme has multiple precincts or neighbourhoods

From a lender’s perspective, both can be acceptable, but policy treatment may differ.

Is community title the same as Torrens title?

No.

Torrens title usually means the owner owns the land directly, without the same shared scheme structure.

Community title may still involve ownership of a lot, but it also includes shared community obligations.

A community title property may feel like a Torrens title house, especially if it is detached, but the lender may still review the community scheme.

Is community title the same as company title?

No.

Company title means ownership is usually linked to shares in a company that gives a right to occupy a property.

Community title is a registered land title structure with individual lots and shared community property.

Some lenders accept community title but restrict or decline company title.

Do not assume these title types are treated the same.

Is community title the same as leasehold?

No.

Leasehold means the land is held under a lease.

Community title means the property is part of a community scheme.

Some properties can involve multiple title features, but ordinary community title is not the same as leasehold.

If a property is both community title and leasehold, the lender may need to assess both issues.

What types of community title properties may be acceptable?

Potentially acceptable community title properties may include:

• residential houses in a community estate
• townhouses
• villas
• cluster title homes
• group title homes
• community-titled land with completed dwelling
• standard residential lots with shared roads or common property
• low-density residential estates
• ordinary residential properties with shared community facilities

The property still needs to be suitable for residential mortgage lending.

What makes community title acceptable to a lender?

A lender is more likely to accept community title where:

• the property is standard residential use
• the dwelling is complete and habitable
• the title is mortgageable
• the property can be sold in a normal timeframe
• the common property obligations are reasonable
• the development is not highly specialised
• the community levies are affordable
• the valuation supports the purchase price
• there are enough comparable sales
• permanent occupancy is allowed

The lender wants confidence that the property can be used, valued and resold like normal residential security.

What makes community title harder?

Community title can become harder if the property has:

• high community levies
• private roads or shared infrastructure
• restricted use
• age restrictions
• holiday or short-stay restrictions
• management agreements
• resort-style facilities
• limited resale market
• unresolved defects
• litigation in the community scheme
• large special levies
• mixed-use or commercial elements
• unusual by-laws
• remote location
• non-standard construction

The more unusual the scheme, the more likely the lender will review it closely.

Why does the lender care about title type?

The title type affects the lender’s security.

If the borrower defaults, the lender needs to be able to sell the property and recover the debt.

For community title, the lender may consider:

• can a mortgage be registered?
• are there restrictions on sale?
• does the community association affect resale?
• are levies too high?
• are common property disputes present?
• is insurance adequate?
• will buyers be able to obtain finance?
• does the property have normal market appeal?

Title type matters because it can affect marketability.

Can you borrow 95% on community title?

Possibly, with some lenders.

Policy research shows some lenders may allow community title up to high LVRs with mortgage insurance, including up to 95% for owner-occupied or investment scenarios where policy and mortgage insurer rules are met.

However, this is not universal.

Other lenders may cap community title at 80%, decline it, or require stronger borrower and property conditions.

The available LVR depends on:

• lender policy
• mortgage insurance availability
• property type
• borrower profile
• location
• valuation
• loan purpose
• scheme restrictions

Can you borrow 80% on community title?

Often, this is easier than high-LVR lending.

At 80% LVR or below, mortgage insurance is usually not required, and some lenders may be more flexible.

However, some lenders still exclude community title entirely.

A larger deposit helps, but it does not guarantee approval if the lender’s title policy says no.

Can community title require a bigger deposit?

Yes.

If the lender treats community title as higher risk or if mortgage insurance is unavailable, you may need a larger deposit.

Possible outcomes include:

• 5% deposit with selected lenders only
• 10% deposit where LMI policy allows
• 20% deposit where no LMI is available
• lower LVR if the property is unusual
• decline if the title is outside policy

A community title property should be checked before you commit to a deposit strategy.

Can mortgage insurance be used for community title?

Sometimes.

Some lenders may allow mortgage insurance on community title up to normal or near-normal limits.

Others may not.

The mortgage insurer may review:

• title type
• property type
• valuation
• location
• marketability
• borrower profile
• LVR
• scheme restrictions

If LMI is not available, the maximum LVR may be lower.

What if one lender accepts community title and another does not?

That can happen.

Community title policy differs across lenders.

One lender may list community title as acceptable title.

Another may list it as unacceptable.

Another may allow it only at a restricted LVR.

Another may accept it only if the property is standard residential and readily saleable.

A decline with one lender does not always mean the property is unfinanceable.

Can community title be acceptable for owner-occupied loans?

Yes.

Owner-occupied community title property may be acceptable if the property is standard residential security.

The lender may assess:

• whether you will live in the property
• whether permanent occupancy is allowed
• community fees
• property insurance
• valuation
• LVR
• title and contract
• serviceability

Owner-occupied use can be simpler where the property is a normal home.

Can community title be acceptable for investment loans?

Yes, with some lenders.

The lender may assess:

• rental income
• community levies
• property expenses
• tenant demand
• lease or rental appraisal
• resale market
• LVR
• title acceptability

Investment community title can be fine where the property is standard and rentable.

However, short-stay or resort-style community schemes may be harder.

Can community title be used for short-term rental or Airbnb?

Possibly, but it can add complexity.

A community scheme may have by-laws or management statements that restrict short-term letting.

The lender may ask:

• is permanent occupancy allowed?
• is short-stay letting permitted?
• is rental income being used?
• are there management agreements?
• is the property effectively holiday accommodation?
• does the valuation treat it as residential?

Airbnb income may be assessed separately, and the property itself still needs to be acceptable security.

Can community title be part of a resort or holiday development?

This can be difficult.

Community title properties in resort-style or holiday developments may have:

• management agreements
• letting pool arrangements
• short-stay use
• restrictions on permanent occupancy
• high body corporate or community fees
• limited resale market
• seasonal demand
• tourism-based valuation

Some lenders may treat these as non-standard or unacceptable security.

Can a community title property have private roads?

Yes.

Some community title estates include private roads or shared accessways.

The lender may ask:

• who maintains the road?
• are levies collected for maintenance?
• is access legally protected?
• is the road in good condition?
• does the valuation note any issue?
• are emergency services and utilities available?

Private roads are not necessarily a problem, but they need to be clear and functional.

Can shared infrastructure affect approval?

Yes.

Community title may involve shared infrastructure such as:

• internal roads
• drainage
• lighting
• water systems
• sewerage systems
• gates
• recreational facilities
• retaining walls
• landscaping
• shared services

The lender may consider whether the shared infrastructure creates high ongoing costs or marketability issues.

Can high community levies affect borrowing power?

Yes.

Community levies, body corporate fees or owners corporation fees are usually included in living expenses or property expenses.

High levies can reduce borrowing capacity.

The lender may ask for:

• levy notice
• community association statement
• body corporate disclosure
• strata report
• budget
• special levy information
• insurance information

If levies are high, the loan may service for a lower amount.

Do community levies count like strata fees?

Often, yes.

From a serviceability perspective, community levies can be treated similarly to strata or body corporate fees.

A lender may include them under:

• primary residence housing expenses
• investment property expenses
• living expenses
• property running costs
• ongoing commitments

The treatment depends on lender calculator policy.

What if levies are low?

Low levies can help borrowing power, but the lender may still ask whether the scheme is properly funded.

Very low levies can sometimes raise questions if common property maintenance appears underfunded.

The lender or valuer may consider whether future special levies are likely.

What if special levies are planned?

Special levies can affect approval.

A special levy may be used for:

• road repairs
• drainage works
• insurance shortfalls
• building defects
• shared facility upgrades
• legal disputes
• major maintenance

The lender may include special levies in expenses or ask whether the borrower has enough funds to cover them.

Can community title defects affect approval?

Yes.

If the community scheme has defects or unresolved maintenance problems, the lender may be cautious.

Issues may include:

• structural defects
• retaining wall problems
• drainage defects
• private road deterioration
• fire safety issues
• cladding concerns
• water ingress
• insurance disputes
• litigation

A valuation or strata/community report may identify these issues.

Can community association litigation affect approval?

Yes.

If the community association is involved in legal disputes, the lender may ask whether it affects:

• property value
• future levies
• insurance
• marketability
• maintenance obligations
• scheme solvency
• resale

Legal disputes can make buyers and lenders cautious.

Can insurance issues affect community title approval?

Yes.

The lender needs confidence that the property and common areas are appropriately insured.

Insurance may involve:

• building insurance
• public liability insurance
• community association insurance
• strata insurance
• common property insurance
• individual home insurance

The required insurance depends on the property and scheme.

Who arranges insurance for community title?

It depends on the scheme.

In some community title developments, the individual owner may arrange building insurance for their dwelling.

In others, the community association or body corporate may arrange insurance over common property or some buildings.

The lender may require proof that the security property is adequately insured and that the lender’s interest is noted where required.

What if building insurance is arranged individually?

The lender may ask for a certificate of currency showing:

• property address
• insured amount
• borrower name
• lender noted as mortgagee or interested party, where required
• correct policy type
• effective dates

If the dwelling is not covered by community insurance, individual insurance becomes critical.

What if the community association insures common property only?

Then you may need both:

• individual building insurance for your dwelling

and

• community association insurance for common property

The lender may want evidence that both the home and the shared areas are appropriately insured.

Your solicitor should review the insurance obligations in the community management statement.

Can community title affect the valuation?

Yes.

The valuer may consider:

• title type
• comparable sales
• scheme condition
• common property
• levies
• marketability
• restrictions
• defects
• occupancy rules
• whether buyers can finance similar properties

If the valuation notes limited marketability or unusual title, the lender may reduce LVR or decline.

What if the valuation comes in low?

A low valuation can create a shortfall.

You may need to:

• increase deposit
• negotiate purchase price
• reduce loan amount
• use another lender
• obtain more evidence
• reconsider the purchase

Community title valuation risk can be higher if there are few comparable sales.

What if the valuer says marketability is limited?

The lender may restrict the loan or decline.

Limited marketability means the property may be harder to sell.

Reasons may include:

• unusual title
• high levies
• location
• age restrictions
• management agreements
• small buyer pool
• scheme defects
• holiday letting focus
• poor comparable sales

Marketability is central to mortgage approval.

Can community title be readily saleable?

Yes.

Many community title properties are readily saleable, especially where they are standard residential townhouses, villas or houses in established estates.

A property is more likely to be readily saleable if:

• permanent occupancy is allowed
• fees are reasonable
• the location is strong
• the dwelling is standard
• common property is well maintained
• restrictions are minimal
• comparable sales exist
• multiple lenders accept the title

Can community title be hard to resell?

Yes, in some cases.

Resale may be harder if:

• lenders restrict the title
• levies are high
• the scheme is specialised
• occupancy is restricted
• the development targets retirees only
• holiday letting dominates
• management agreements are compulsory
• defects or litigation exist
• common property is poorly maintained

A property that is hard to finance can also be hard to sell.

Can age-restricted community title be financed?

Possibly, but it can be more restricted.

Some community title properties are within over-50s, over-55s or retirement-style developments.

A lender may treat age-restricted developments differently from ordinary community title.

Policy research shows some lenders cap age-restricted developments at lower LVRs and may not have mortgage insurance available.

The lender may ask:

• is the property a retirement village?
• is the title mortgageable?
• are there age restrictions?
• can the property be sold on the open market?
• are there exit fees?
• is permanent occupancy allowed?

Age restrictions can reduce the buyer pool and lender appetite.

Is over-55s community title the same as a retirement village?

Not always.

Some over-55s properties are standard freehold, strata or community title.

Others are retirement village arrangements with lease, licence, deferred management fees and operator control.

A lender may be more comfortable with a standard title property than a retirement village contract.

The legal structure matters more than the marketing label.

Can retirement village community title be financed?

Sometimes, but it is often difficult.

Many retirement village arrangements are not standard residential security.

They may involve:

• lease or licence to occupy
• exit fees
• deferred management fees
• resale restrictions
• operator approval
• age restrictions
• restrictions on who can buy

Some lenders list retirement village accommodation as unacceptable security.

Even if the title mentions community-style ownership, the lender needs to assess the full arrangement.

Can community title have exit fees?

Some schemes may have fees or obligations on sale.

The lender may consider whether fees affect:

• resale price
• borrower equity
• marketability
• buyer demand
• net sale proceeds
• valuation

High exit fees can make the property less attractive to buyers and lenders.

Can community title be used for a family home?

Yes.

Many community title properties are ordinary family homes within shared estates.

A lender may be comfortable where:

• the dwelling is standard
• land size is normal
• title is accepted
• levies are reasonable
• the scheme is well managed
• valuation supports the purchase
• permanent occupancy is allowed

This is often much easier than resort or retirement-style community title.

Can community title be used for townhouses and villas?

Yes.

Townhouses and villas are common community or strata-style properties.

The lender may assess:

• title type
• dwelling condition
• floor area
• location
• levies
• insurance
• valuation
• LVR
• owner-occupied or investment use

Community title townhouses can be straightforward with the right lender.

Can community title be used for apartments?

Possibly, but apartments also need to meet apartment policy.

The lender may assess:

• apartment size
• building density
• location
• strata or community scheme
• levies
• cladding or defects
• valuation
• marketability
• LVR
• parking and storage titles

If the apartment is small, high-density or in a restricted postcode, title acceptability is only one issue.

Can community title be used for duplex properties?

Possibly.

A duplex may be community title, strata title, Torrens title or another structure.

The lender may ask:

• are both dwellings on separate titles?
• is the property one lot or two?
• is there common property?
• is the property attached or detached?
• are there shared services?
• is one or both dwellings being purchased?
• is rental income involved?

Title and dwelling configuration matter.

Can community title be used for dual occupancy?

Possibly, but lender policy may be more restrictive.

Dual occupancy can involve:

• one dwelling plus granny flat
• two dwellings on one title
• strata or community subdivision
• shared services
• rental income from one dwelling
• separate occupancy arrangements

The lender may assess both property type and community title structure.

Can community title be used for multiple dwellings?

Possibly, but maximum LVR may be lower.

Where a property includes multiple dwellings or multiple lots, the lender may apply different security policy.

They may ask:

• how many dwellings are being purchased?
• are they on one title or separate titles?
• is the valuation “in one line”?
• is subdivision involved?
• are there shared facilities?
• is it residential use only?

Community title does not automatically solve multi-dwelling restrictions.

Can you buy multiple properties in the same community scheme?

Possibly, but exposure limits may apply.

Some lender policy restricts the number of properties a borrower can hold within the same development, body corporate or scheme.

The lender may consider:

• borrower concentration
• development concentration
• resale risk
• rental exposure
• maximum number of dwellings
• LMI exposure limits
• individual loan limits

Buying multiple lots in one community scheme may need further review.

Can an investor buy several community title lots?

Possibly, but lender appetite may be limited.

The lender may assess:

• number of lots
• total exposure
• rental income
• vacancy risk
• concentration risk
• body corporate or community levy exposure
• resale market
• LVR

Investor concentration within one scheme can reduce options.

Can community title be used for vacant land?

Possibly, with some lenders.

A community title lot may be vacant land within an estate.

The lender may assess:

• whether vacant land is acceptable
• land size
• zoning
• services
• road access
• community scheme obligations
• building requirements
• construction timeframe
• LVR
• whether a fixed-price building contract is available

Some lenders do not accept vacant land, even if they accept community title.

Can community title be used for construction?

Yes, sometimes.

If you are building on community title land, the lender may assess:

• community title acceptability
• land contract
• building contract
• fixed-price contract
• progress payment schedule
• plans and specifications
• builder licence
• community association requirements
• covenant or design guidelines
• funds to complete
• valuation on completion

Construction adds another layer of assessment.

Can community scheme design guidelines affect construction finance?

Yes.

Some community title estates have design guidelines, building covenants or approval requirements.

The lender may ask whether:

• the design is approved
• the build contract matches approved plans
• construction complies with community rules
• there are restrictions on materials or appearance
• the dwelling can be completed within required timeframes
• the valuation assumes compliance

If the community association can block or delay construction, the lender may need clarity.

Can community title have building covenants?

Yes.

Building covenants may require certain:

• dwelling size
• facade design
• fencing
• landscaping
• parking
• use restrictions
• completion timeframes
• materials

These are not always a problem, but they can affect construction timing and resale.

Can community title affect renovations?

Yes.

If the property is part of a community scheme, renovations may need approval from the community association, strata committee or relevant body.

The lender may ask:

• are renovations structural?
• is approval required?
• has approval been obtained?
• are there by-law restrictions?
• will common property be affected?
• is cash out being requested?

Renovation funding may be harder where approval is uncertain.

Can community title be used for modular or transportable homes?

Possibly, but lender options may be narrower.

The lender must accept:

• community title land
• construction type
• permanent attachment
• services connection
• valuation
• building approvals
• marketability

If the dwelling is relocatable or not permanently fixed, it may be unacceptable with many lenders.

Can community title be used for manufactured homes or lifestyle villages?

Often, standard home lending is difficult.

Some lifestyle village arrangements involve site agreements, licences, leases or relocatable homes rather than normal community title ownership.

The lender may decline if:

• the borrower does not own the land
• the dwelling is relocatable
• the title is not mortgageable
• occupation is restricted
• resale requires operator approval

Do not assume a lifestyle village is ordinary community title.

Can community title be used for rural residential property?

Possibly.

A community title rural residential estate may be acceptable if:

• zoning is residential or rural residential
• land size is within policy
• the dwelling is standard
• access and services are adequate
• common property is manageable
• the property is readily saleable
• LVR is within limits

Rural location and community title both need to be assessed.

Can community title be used for hobby farms?

Possibly, but it depends on lender policy.

The lender may assess:

• land size
• zoning
• whether income is from primary production
• dwelling condition
• community title restrictions
• water and road access
• marketability
• LVR

A hobby farm within a community title scheme may have more policy layers than a normal suburban house.

Can community title be used for mixed-use property?

Possibly, but more difficult.

If the property has residential and commercial elements, the lender may apply mixed-use policy.

Issues may include:

• commercial zoning
• business use
• residential percentage
• marketability
• valuation
• community scheme rules
• income treatment
• LVR

Community title plus mixed-use can become non-standard quickly.

Can community title be used for company or trust borrowers?

Possibly, if the lender accepts both the borrower structure and the security.

The lender must be comfortable with:

• company or trust borrower
• individual guarantees, if required
• community title security
• loan purpose
• serviceability
• title registration
• LVR

Some lenders accept community title but do not accept company or trust borrowers, so both policies matter.

Can an SMSF buy community title property?

Possibly, but SMSF lending is specialised.

The lender and advisers need to consider:

• SMSF borrowing rules
• residential property restrictions
• related party rules
• title and lot structure
• lease or occupancy arrangements
• whether the property is acceptable security
• whether the community scheme creates obligations
• rental income and expenses

An SMSF purchase of community title property should be reviewed before contract.

Can community title be used with a guarantor?

Possibly.

A guarantor may help with LVR if the lender accepts the community title property.

However, a guarantor will not usually fix an unacceptable security.

The lender must still accept the property being purchased.

The guarantor structure must also fit lender policy.

Can a family guarantee help with community title?

Yes, in some cases.

If the lender accepts the community title property but the borrower has a small deposit, a family guarantee may reduce or avoid LMI.

The lender may still assess:

• community title security
• guarantor property
• guarantee amount
• borrower serviceability
• legal advice
• exit plan for guarantee release

Family guarantee approval depends on both properties and both parties.

Can community title be used with the First Home Guarantee?

Possibly.

If the lender participates in the scheme and accepts community title, the property may be eligible.

However, the scheme and lender must both be satisfied.

The lender may assess:

• property price cap
• scheme eligibility
• genuine savings
• community title acceptability
• valuation
• LVR
• mortgage insurer or guarantee rules
• owner-occupier purpose

Low-deposit scheme loans may be more sensitive to non-standard title.

Can community title be used with the First Home Owner Grant?

Possibly.

The First Home Owner Grant depends on state or territory rules, property type and eligibility.

A community title property may qualify if it meets the relevant grant rules.

However, the lender still needs to accept the title.

Grant eligibility and lender security policy are separate issues.

Can community title be used with DHOAS?

Possibly.

Defence members using DHOAS still need the DHOAS lender to accept the property.

The lender may assess:

• DHOAS certificate
• Defence income
• community title security
• occupancy requirements
• valuation
• LVR
• property use

DHOAS does not override community title policy.

Can community title be used with aged pension income?

Possibly.

The lender must accept both:

• aged pension or retirement income

and

• community title property

For example, a lender may accept community title but not pension-only income, or accept pension income but not the title.

Both sides of the application need to fit.

Can community title be used with workers compensation income?

Possibly, but lender choice becomes important.

Workers compensation income may already be policy-sensitive.

If the property is also community title, the lender must be comfortable with both the income and the security.

Layering non-standard income with non-standard title can reduce lender options.

Can community title be refinanced?

Yes, if the new lender accepts the title.

A refinance may be used to:

• obtain a lower rate
• consolidate suitable debts
• release equity
• remove a borrower
• change loan structure
• refinance after construction
• switch lenders

The lender will still review title type, valuation, LVR, levies and borrower serviceability.

Can you refinance community title to another lender?

Yes, but do not assume every lender will accept it.

If your current lender accepted community title years ago, another lender may still decline it today.

Before discharging or applying, check:

• title acceptance
• LVR limit
• valuation
• levy expenses
• insurance
• cash-out restrictions
• lender appetite

Community title refinances should be pre-checked.

Can you take cash out against community title property?

Possibly.

A lender may consider cash out if:

• community title is acceptable
• valuation supports the amount
• LVR remains within policy
• loan purpose is acceptable
• borrower services the higher debt
• credit conduct is acceptable

Cash out may be more closely reviewed where the title or property is non-standard.

Can community title be used for debt consolidation?

Possibly.

The lender may assess:

• community title acceptability
• debts being consolidated
• repayment benefit
• account conduct
• credit history
• LVR
• loan term
• borrower affordability

Debt consolidation on community title may be straightforward if the property is standard and LVR is conservative.

Can community title affect debt-to-income ratio?

The title itself does not usually affect DTI directly.

However, community fees can affect serviceability because they increase expenses.

A high community levy may reduce borrowing power even if DTI is acceptable.

The lender may also include existing debts, credit card limits, car loans and other liabilities.

Can community title affect living expenses?

Yes.

Community title fees may be included in declared living expenses or property running costs.

For owner-occupied properties, lenders may include:

• community levies
• body corporate fees
• strata fees
• rates
• utilities
• maintenance
• insurance

For investment properties, they may include levies and other expenses against rental income or serviceability.

What documents are needed for a community title loan?

Documents may include:

• contract of sale
• title search
• community management statement
• community scheme documents
• by-laws
• disclosure statement
• body corporate or community association levy notice
• insurance certificate
• strata or community report
• valuation report
• building insurance certificate
• rental appraisal or lease, if investment
• evidence of special levies
• solicitor or conveyancer report
• income and deposit documents

Not every lender requires every document, but community title can require more property evidence than standard Torrens title.

Do lenders need the community management statement?

Sometimes.

The community management statement or equivalent document may show:

• common property obligations
• by-laws
• levies
• maintenance rules
• use restrictions
• dispute resolution rules
• building rules
• access rights
• shared services
• responsibilities of owners

A lender or solicitor may need to review it if the property is unusual.

Do lenders need body corporate or community levy statements?

Often, yes.

The lender needs to include ongoing levies in servicing.

A levy statement can show:

• regular levy amount
• payment frequency
• arrears
• special levies
• sinking fund contributions
• administration fund contributions
• insurance contributions
• owner obligations

High or unpaid levies can affect the application.

Do lenders need a strata or community report?

Sometimes.

A report can help identify:

• defects
• special levies
• legal disputes
• insurance issues
• financial position of the scheme
• maintenance problems
• by-law restrictions
• meeting minutes
• major planned works

For community title, a report can be useful even if not always lender-required.

Do lenders need building insurance evidence?

Yes, insurance is usually required before settlement.

The lender may need evidence of:

• individual building insurance
• community association insurance
• strata insurance
• public liability insurance
• common property insurance
• lender noted as mortgagee, where required

Insurance requirements depend on the title and scheme structure.

What should your solicitor check?

Your solicitor or conveyancer should review:

• title type
• community scheme documents
• by-laws
• levies
• special levies
• common property responsibilities
• insurance
• access rights
• use restrictions
• resale restrictions
• building restrictions
• disputes or defects
• settlement requirements

Legal review is important because lender approval does not replace legal advice.

What should your broker check?

Your broker should check:

• which lenders accept community title
• maximum LVR
• whether LMI is available
• whether the property type is standard
• whether levies affect borrowing power
• whether scheme restrictions may be an issue
• whether valuation risk exists
• whether backup lenders are available
• whether pre-approval covers the specific property

Community title should be checked before unconditional commitment.

Can a standard pre-approval cover community title?

Not always.

A pre-approval may be based mainly on borrower income and deposit, not the specific title.

Once the property is found, the lender may still need to assess:

• community title
• valuation
• levies
• property condition
• by-laws
• marketability
• insurance

A generic pre-approval is not the same as approval of a specific community title property.

Can you buy community title at auction?

Yes, but be careful.

Auction contracts are usually unconditional.

Before bidding, check:

• lender accepts community title
• LVR is acceptable
• mortgage insurance is available, if needed
• levies are affordable
• solicitor has reviewed the contract and scheme documents
• property is standard residential security
• valuation risk is acceptable

Do not rely on a generic pre-approval for a non-standard title at auction.

Can community title cause settlement delays?

Yes.

Settlement delays may happen if:

• the lender requests more title documents
• valuation raises concerns
• insurance evidence is unclear
• levies need verification
• legal review identifies restrictions
• mortgage insurer asks questions
• property type is miscoded
• community association consent is needed

Allow extra time for community title purchases.

Can another lender approve if one declines?

Possibly.

Community title policy varies enough that a second lender may have a different answer.

However, if the issue is severe, such as limited marketability, major defects or unacceptable occupancy restrictions, multiple lenders may decline.

A broker can help identify whether the problem is lender-specific or property-specific.

What if the title is miscoded?

This can happen.

A property may be described by agents or buyers as strata, Torrens, group title, cluster title or community title incorrectly.

The lender may rely on title search, contract, solicitor information and valuation.

If the title type is unclear, obtain legal confirmation early.

Wrong title assumptions can lead to approval issues.

What questions should you ask the agent?

Useful questions include:

• Is the property community title, strata, group title or Torrens title?
• Are there community levies?
• What common property is shared?
• Are there special levies planned?
• Are there any disputes or defects?
• Are there occupancy restrictions?
• Are short-term rentals allowed?
• Are pets allowed?
• Is building insurance individual or shared?
• Have other buyers had finance issues?

Agent answers should be verified through documents.

What questions should you ask the solicitor?

Ask your solicitor:

• What title type is this?
• What obligations come with the community scheme?
• Are there any use restrictions?
• Are levies current?
• Are special levies expected?
• Is insurance adequate?
• Are there defects or disputes?
• Can the property be sold freely?
• Are approvals required for renovations?
• Are there private roads or shared services?

The solicitor’s review is essential.

What questions should you ask your broker?

Ask your broker:

• Which lenders accept this title type?
• What LVR is available?
• Is LMI available?
• Do community levies affect borrowing power?
• Does the lender need the scheme documents?
• Are there property restrictions?
• Should the file be workshopped?
• Are there backup lender options?
• Could the valuation cause issues?

A broker should check lender policy before submission.

What if the lender wants the file workshopped?

That is common for unusual community title.

A lender may want to review:

• title type
• property type
• scheme restrictions
• LVR
• borrower strength
• valuation comments
• levies
• insurance
• location
• comparable sales

A workshop is not approval, but it can help avoid obvious mismatches.

What if the lender approves only at lower LVR?

You may need to adjust your deposit strategy.

Options may include:

• increase deposit
• use a family gift
• sell investments
• use sale proceeds
• reduce purchase price
• use a guarantor, if policy allows
• find another lender
• choose another property

A lower LVR requirement can change funds to complete quickly.

What if LMI declines the title?

If mortgage insurance declines, the lender may only approve up to its no-LMI maximum, often 80% or lower depending on policy.

Options may include:

• increase deposit
• choose another lender with different insurer appetite
• use guarantor support
• reduce purchase price
• choose a more standard property
• wait and save more

LMI availability is crucial for low-deposit community title purchases.

What if the lender treats community title as unacceptable?

Then you need another lender or another property.

Some lenders’ policies may list community title as unacceptable security.

In that case, strong income, a large deposit or clean credit may not matter.

The title itself is outside that lender’s policy.

What if the community scheme is small?

Small schemes can be acceptable, but the lender may consider whether:

• insurance is adequate
• levies are sufficient
• common property is maintained
• there are disputes between owners
• management is informal
• comparable sales exist

Small schemes can be simple or problematic depending on how they are run.

What if the community scheme is large?

Large schemes can also be acceptable, but high density or concentration issues may arise.

The lender may assess:

• number of lots
• development stage
• body corporate financial position
• building defects
• high-density policy
• concentration limits
• investor concentration
• valuation evidence

Large communities are not automatically a problem, but property-specific details matter.

What if the community scheme is staged?

A staged development can add risk.

The lender may ask:

• are future stages planned?
• is construction still underway?
• are amenities complete?
• will levies change?
• is common property finalised?
• are roads and services completed?
• does the valuation rely on future works?
• are there developer obligations?

Staged developments can affect valuation and settlement risk.

What if the developer still controls the community association?

This may be relevant.

Early-stage developments may have developer control of the community association.

The lender or solicitor may review:

• budget
• levies
• maintenance obligations
• future facility costs
• developer agreements
• staged works
• handover timing
• defect liability

Developer control is not always a problem, but it should be understood.

Can community title be affected by developer incentives?

Yes.

If the purchase includes incentives, rebates or unusual contract terms, the lender may assess the true purchase price and valuation.

This can affect:

• LVR
• funds to complete
• genuine savings
• valuation
• mortgage insurance
• approval amount

Developer incentives should be disclosed upfront.

Can community title be affected by shared facilities?

Yes.

Shared facilities may include:

• pool
• gym
• tennis court
• clubhouse
• security gates
• gardens
• roads
• marina facilities
• recreational areas

These facilities can improve lifestyle, but they can also increase levies and maintenance obligations.

The lender may consider whether the fees are reasonable and whether the facilities affect marketability.

Can community title include marina berths?

Sometimes, but this can be more specialised.

If the property includes a marina berth, water access or separate title interests, the lender may need to assess:

• whether the berth is included in valuation
• title type
• lease or licence for the berth
• transfer rights
• separate fees
• marketability
• insurance

Special features may not be fully valued or accepted.

Can car spaces or garages on separate title affect approval?

Yes.

If a unit, townhouse or community title property has a car space or garage on a separate title, the lender may need to take security over both titles.

Policy research shows some lenders require a first mortgage over additional car space or garage titles attached to the residence.

Missing a related title can delay approval or settlement.

Can storage cages or accessory lots affect approval?

Possibly.

The lender may ask whether storage or accessory lots are:

• on the same title
• on separate title
• included in the contract
• included in valuation
• mortgageable
• required to be taken as security

Accessory lots should be disclosed clearly.

Can community title properties have multiple titles?

Yes.

A purchase may involve:

• main residential lot
• car space lot
• storage lot
• common property interest
• accessory lot

The lender and solicitor must ensure the correct titles are included in the mortgage and settlement.

Incorrect title handling can delay settlement.

Can community title affect stamp duty or grants?

Possibly, depending on the state or territory and property type.

The title itself may not be the only issue. Eligibility for grants or concessions may also depend on:

• property value
• owner-occupier status
• first-home buyer status
• new or established property
• contract structure
• land and build arrangement
• occupancy rules

Your solicitor should confirm state-based duty and grant rules.

Can community title affect the First Home Owner Grant?

It can if the property type, build status or occupancy rules affect eligibility.

A new community title townhouse may qualify in some circumstances, while an established property may not.

The lender may include the grant in funds to complete only if eligibility and timing are clear.

The grant does not override lender title policy.

Can community title affect land tax?

Possibly, especially for investment properties.

Land tax rules vary by state and ownership structure.

The lender may include property costs in servicing, but tax advice should come from an accountant or tax adviser.

If you are buying through a company, trust or SMSF, advice is especially important.

Can community title affect council rates?

Yes, rates may be assessed on the individual lot, while community levies cover shared costs.

The lender may include both:

• council rates
• community levies
• water charges
• insurance
• maintenance

Investment properties may also include property management fees and other expenses.

Can community title affect borrowing power more than a house?

Yes, if the levies are high.

A freestanding Torrens title house may have council rates and insurance but no community levies.

A community title property may have additional fees.

If the fees are high, borrowing capacity can reduce.

This is especially important for first-home buyers, retirees and borrowers near their limit.

Can community title be cheaper to maintain?

Sometimes.

Shared maintenance can reduce individual maintenance responsibilities.

For example, the community association may manage landscaping, roads or shared facilities.

However, the cost is still paid through levies.

A lender focuses on the actual ongoing expense, not whether the expense is paid directly or through the scheme.

Can community title be a problem for future refinancing?

Possibly.

Future refinancing depends on lender appetite at that time.

If only a few lenders accept the title, you may have fewer refinance options later.

This can matter if you want to:

• switch to a lower rate
• release equity
• consolidate debt
• renovate
• remove a borrower
• refinance after fixed rate

Before buying, consider future lender flexibility.

Can community title affect resale value?

It can.

Community title may be neutral or even positive where the estate is desirable and well maintained.

It may reduce value where:

• levies are high
• restrictions are burdensome
• the title is misunderstood
• lender options are limited
• facilities are expensive
• defects exist
• resale approvals are required

The valuation and comparable sales help show market reaction.

Should community title be avoided?

Not necessarily.

Many community title properties are perfectly acceptable and attractive.

Community title may suit buyers who want:

• shared facilities
• maintained common areas
• estate-style living
• townhouse or villa living
• lower maintenance
• secure communities
• planned developments

The key is to understand the scheme and lender policy before committing.

When should you be cautious?

Be cautious if:

• the lender has not checked the title
• the property is in a resort-style scheme
• permanent occupancy is restricted
• levies are high
• special levies are likely
• defects are unresolved
• the contract is unconditional
• the property is age-restricted
• resale requires operator consent
• the development is remote or highly specialised
• only one lender seems willing to consider it

Caution does not mean no, but it means more due diligence is needed.

Common mistakes with community title home loans

Do not assume community title is the same as Torrens title.

Do not assume every lender accepts community title.

Do not rely on a generic pre-approval.

Do not ignore community levies.

Do not forget special levies.

Do not assume LMI is available.

Do not ignore by-laws or occupancy restrictions.

Do not assume a retirement-style community is standard community title.

Do not ignore valuation comments about marketability.

Do not sign an unconditional contract before checking lender appetite.

How to improve your chances of approval

You can improve your chances by preparing the property evidence early.

Helpful steps include:

• confirm the exact title type
• obtain a current title search
• obtain the community management statement
• review by-laws and restrictions
• check levy amounts
• check for special levies
• obtain insurance details
• get a solicitor to review the scheme
• confirm lender policy before signing
• use a lender that accepts community title
• keep LVR conservative if the property is unusual
• confirm LMI availability if borrowing above 80%
• prepare a backup lender

Community title applications are easier when the lender understands the title and the property is otherwise standard.

What documents should you prepare?

Before applying, prepare:

• contract of sale
• title search
• community management statement
• by-laws
• disclosure statement
• levy notice
• evidence of special levies, if any
• community or strata report
• insurance certificate
• body corporate or community association records
• valuation access details
• rental appraisal or lease, if investment
• building insurance evidence
• income documents
• deposit evidence
• credit and loan statements

You may not need every document, but having them ready can prevent delays.

Should you wait before applying?

Sometimes waiting can help.

Waiting may improve your options if:

• the title type is unclear
• the community documents are missing
• special levies are unresolved
• insurance details are incomplete
• the property is still being built
• valuation access is not available
• LMI availability is uncertain
• your deposit needs to be increased
• solicitor review is incomplete

You may not need to wait if:

• the property is standard community title
• lender policy clearly accepts it
• LVR is within policy
• levies are reasonable
• valuation is straightforward
• insurance is adequate
• borrower servicing is strong

A broker can compare applying now versus waiting for stronger property evidence.

Example scenarios

Scenario 1: Standard community title townhouse

A borrower buys a townhouse in a residential community scheme.

The lender accepts community title, includes levies in expenses and approves the loan subject to valuation.

Scenario 2: Community title declined by one lender

A buyer applies with a lender that lists community title as unacceptable security.

The application is declined despite strong income. Another lender that accepts community title may still be considered.

Scenario 3: High-LVR community title purchase

A first-home buyer wants to borrow 95%.

The lender checks whether community title is eligible for mortgage insurance and whether the property is standard residential security.

Scenario 4: Community title with high levies

The property is acceptable security, but the levies are high.

The lender includes the levies in serviceability, reducing borrowing power.

Scenario 5: Age-restricted community title

A borrower wants to buy in an over-55s community.

The lender applies more restrictive policy because resale is limited to a smaller buyer pool.

Scenario 6: Resort-style community title

A property is in a holiday development with management agreements and short-stay letting.

The lender may decline because the property is not standard residential security.

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

Yes, you can get a home loan for community title property with some lenders.

The strongest applications usually have:

• standard residential community title
• clear mortgageable title
• readily saleable property
• reasonable levies
• no major defects or disputes
• adequate insurance
• no restrictive occupancy or resale rules
• acceptable valuation
• lender policy that accepts community title
• LVR within policy
• mortgage insurance available, if needed

Community title can be financeable, but lender policy varies. The safest approach is to check title, valuation risk, levies and LVR before signing a contract.

Need help with a community title home loan?

A mortgage broker can help compare lenders that may consider community title, group title, cluster title, strata-style residential property, over-55s developments, townhouse purchases, villa purchases, community scheme refinances and non-standard title scenarios.

We can review your title type, LVR, levies, insurance, valuation risk, deposit, income and lender options before you apply.

If you are buying or refinancing community title property, speak with a mortgage broker who understands how different lenders assess title type and acceptable security policy.

FAQs

Can you get a home loan for community title property?

Yes, some lenders accept community title property, but policy varies.

Do all lenders accept community title?

No. Some accept it, some restrict it, and some list community title as unacceptable security.

Is community title the same as strata title?

No. They are different title structures, although both can involve shared common property and levies.

Can you borrow 95% on community title?

Possibly, with selected lenders and mortgage insurance approval, if the property is standard residential security.

Can community title be capped at 80% LVR?

Yes, some lenders may cap LVR or require no-LMI lending depending on title type and property risk.

Do community levies affect borrowing power?

Yes. Community levies, body corporate fees and similar charges are usually included in expenses.

Can community title be used for investment property?

Yes, if lender policy accepts the title and the property is rentable and standard residential security.

Can over-55s community title be financed?

Possibly, but age restrictions can reduce lender appetite and may lower maximum LVR.

What documents are needed?

You may need the contract, title search, community management statement, by-laws, levy notice, insurance evidence and valuation.

Should I speak to a broker before signing?

Yes. Community title should be checked before signing, especially if you need high LVR finance or the contract is unconditional.