Lending policy

How do the banks view NRAS properties?

Getting approval for a loan largely depends on the type of consortium & legal structure that you choose to use.

Some consortiums are considered high risk by the lenders and have policies that do not match the banks.

Schemes available

Various consortiums have different structures. ‘Head lease’ structures allow groups to form joint ventures and invest in NRAS properties.

However, the consortiums that are structured as ‘non-entity joint ventures’ are favoured by lenders.

Why can’t I borrow more?

Lenders may choose to restrict the amount that you are eligible to borrow, as most banks do not include the tax exemptions when assessing your ability to repay the loan.

This means that the amount you are eligible to borrow may be restricted.

How can we help?

Our expert team will manage your application, ensuring that the tax advantage is included by the banks, where you borrow over 80% LVR.

Speak to us on 1300 885 102 or enquire online today to find out how we can help you get approved.

Why is bank policy so strict?

Because a property under the NRAS is on a fixed lease for a period of up to 10 years, it reduces the saleability of the property. Whilst the property is under the lease, it continues to be subject to its terms, thus any investor wishing to sell it, must find a party that is willing to be bound by the lease conditions. Terminating the NRAS results in a penalty.

This makes it difficult for lenders to accept this property as a security type, as it does not have the ease of sale that is associated with conventional homes.

Call us and get approval!

We know the lending policies of over 40 major banks and non-conforming lenders.

This means we will submit your application with a bank that will lend you up to 90% of the property value, where your financial position is strong.

Enquire online or call us on 1300 885 102 and you could be on your way to financing an NRAS property.