Multiple Dwellings on a Single Title

It can be challenging to secure a home loan for these properties because they are not always in high demand and the market value can fluctuate. Often, the titleholder lives in one of the dwellings and rents out the other(s). However, sometimes both dwellings are rented out. 

What are examples of multiple dwellings on a single title?

There are three main types of this property category: dual occupancy, duplexes and granny flats. Dual occupancy homes are two separate, non-adjoining dwellings. One is usually owner-occupied, while the other is rented out. Duplexes are two dwellings that share a common wall. Other times, they are one house that has been divided into separate units by adding walls and entrances. Granny flats are similar to dual-occupancy homes; however, they are usually not rented out. Typically, granny flats are used by elderly relatives or guests. They can either be a smaller dwelling separated from the primary home or a smaller residence within the primary home. If they are a unit within the primary home, they are a separate unit upstairs or downstairs. 

Can I secure a loan?

Securing a loan for multiple dwellings on a single title requires finding the right lender. If you find a lender willing to approve your loan, you need to meet specific criteria set by the lender. Most lenders are more inclined to approve a loan for dual-occupied dwellings than they are for duplexes. If they do approve loans for duplexes, they set the borrowing limit to 80%, while you may be able to borrow 95% for a dual-occupied loan. 

If you are interested in purchasing a property with multiple dwellings on a single title, consult our team of brokers at Mortgage House. We specialise in high-risk loans that many banks reject.