What Properties Are Ineligible When Applying for a Home Loan?

At Unloan, we want to make your home-buying or refinancing journey as easy and stress-free aspossible. This means making our processes transparent to avoid your home loan application from being declined.

So, to help you understand how we work, we’ve put together a guide on property types that are typically ineligible based on our lending standards.

Ineligible property types

Like most lenders, we have a select list of property types that we don’t offer home loans for.

These include:

• A residential property with a registered second mortgage
• Properties on Norfolk Island
• Properties that are under construction and not yet ready for occupancy (ready for occupancy is when the property is complete and available to start living in)
• Properties that are ‘Off the Plan’ (unless you’re ready to move in and have been issued an occupation certificate)
• Transportable, relocatable, or mobile homes
• Commercial property
• Five or more dwellings within one development per application
• Properties requiring the use of the Home Guarantee Scheme

Please consider that all properties are subject to assessment at approval, and this list serves as a general guideline.

What to know when buying a home

When it comes to buying a property, many borrowers approach their lender for conditional approval before they begin house hunting. Conditional approval isn’t formal loan approval and doesn’t guarantee that your application will be approved but helps you to understand your borrowing power and show sellers you’re serious.

When you apply for conditional approval with Unloan, we’ll provide you with an indication of the maximum amount you can borrow with us, along with any other conditions that need to be met for us to make you an unconditional offer. Be sure to consider our ineligible property types when house hunting, as we won’t be able to offer you a loan if you purchase an ineligible property. 

Once you have secured a property with a Contract of Sale, we can complete a full assessment of your loan application. This will include an assessment of the property’s eligibility and the collection of any outstanding documents needed to verify the information you’ve declared in your application, as well as assessment against our credit assessment criteria. From here, we’ll either give you the green light if everything’s in order or we may have to decline your application if your application doesn’t satisfy our lending standards. 

Are you after more information on the home-buying process? Check out our collection of blog sand clips here.

What to know when refinancing a property

Refinancing is the process of replacing your current home loan with a new mortgage.Refinancing your home loan can unlock a range of benefits, from securing a lower interest rate and saving on your repayments to accessing new features and facilities that can bring you closer to achieving your financial goals.  

If you choose to refinance with Unloan, we will conduct a full assessment of your application against our lending standards.  This includes checking your property against our list of ineligible property types when assessing your application to make sure it is in line with our lending standards. However, if you believe your property may be ineligible, please contact us to discuss potential solutions.

At Unloan, we aim to provide transparency with our customers to ensure you’re aware of our product offerings and help you make an informed decision.

If you do have any queries, you can contact us in any of the following ways:  

Email: [email protected]

SMS: +614 88844 877

Phone: 1300 630 000

We're available to chat:

Monday to Friday 8am - 6pm AEDT

Saturday & Sunday 10am – 6pm AEDT

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This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.‍

Unloan is a division of Commonwealth Bank of Australia.

Applications are subject to credit approval; satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000. 

Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.

There are no fees from Unloan. However, there are some mandatory Government costs depending on your state when switching your home loan. For convenience, Unloan adds this amount to the loan balance on settlement.

* Other third-party fees may apply. Government charges may apply. Your other lender may charge an exit fee when refinancing.