Dual-occupancy homes are a single piece of land containing two separate living spaces, homes or dwellings. You can get a mortgage loan for dual-occupancy residences. However, receiving a loan through a bank or traditional lender may be challenging.
Banks and their assessment
Dual-occupancy dwellings, such as duplexes, are considered high-risk properties by most major lenders. They are high risk because there is lower demand for them. If you are unable to make loan repayments, the bank will be forced to sell your property. With lower demand, the property resale will take longer, forcing banks to sell the property at a loss.
Banks and other lenders deny loans they view as higher risk. If they do approve high-risk loans, you may be limited in how much you can borrow. Most lenders may restrict your borrowing to less than 80% of the property value.
Specialty Lenders
Specialty lenders may be able to offer you dual-occupancy loans with better rates compared to banks. For instance, some specialty lenders allow you to borrow:
- 95% if you are a first-time buyer
- 95% if you are an investor
- 80% if you are applying for a low doc loan
- 95% of the cost of the land and project cost if you are applying for a construction loan
- 100% if you are using a guarantor in some cases
Mortgage House is a specialty, non-bank lender specialising in high-risk loans. Our brokers can help you finance a dual-occupied property, even if traditional lenders won’t. We can offer you loans with competitive interest rates, better terms and without hidden fees.
