As a St John Ambulance employee considering buying a home, understanding how different property types affect your home loan application can help you make informed decisions. Different property types come with varying requirements, loan to value ratios (LVR), and potential impacts on your borrowing capacity.
Understanding Property Types and Lending Criteria
Lenders assess property types differently when you apply for a home loan. Each property type carries different risk profiles, which directly affects the loan amount you can secure and the interest rate you'll receive. Your financial situation remains important, but the property type can influence the application process significantly.
The main property types lenders consider include:
• Established houses
• Units and apartments
• Townhouses
• New builds and off-the-plan properties
• Investment properties
• Rural and semi-rural properties
Each category has specific lending criteria that affect your Home Loan options across different banks and lenders.
Houses vs Units: Key Lending Differences
Established houses typically offer the most favourable lending conditions. Lenders view them as lower risk, often providing access to lower interest rates and higher loan to value ratios. Most lenders will lend up to 95% of the property value for houses, meaning you might avoid lenders mortgage insurance (LMI) with just a 20% deposit.
Units and apartments face stricter lending criteria. Many lenders cap loans at 90% LVR for units, and some require larger deposits. The property market conditions for apartments can be more volatile, affecting both fixed interest rate and variable interest rate options available to you.
Ready to get started?
Book a chat with a Finance & Mortgage Brokers at Paramedic Loans today.
New Construction and Off-the-Plan Properties
When considering construction loans for paramedics, the application process differs significantly from established properties. Construction loans typically require:
• Detailed building contracts and council approvals
• Progress payment structures
• Higher deposit requirements (often 20% minimum)
• Specialised lenders who understand construction financing
Calculating home loan repayments for construction loans involves understanding that you'll initially pay interest only on drawn-down amounts during the building phase.
Investment Property Considerations
If you're looking at buying your first investment property, lending criteria become more restrictive. Investment properties typically require:
• Minimum 20% deposits
• Higher interest rates than owner-occupier loans
• More stringent income verification requirements
• Lower maximum LVR ratios
Your home equity from existing properties can help secure investment property loans, but lenders assess investment property cash flow separately from your St John Ambulance income.
Rural and Lifestyle Properties
Rural properties face unique lending challenges. Many mainstream lenders won't finance properties on large acreage or in remote locations. When they do, expect:
• Higher deposit requirements (25-30%)
• Limited Home Loan pre-approval options
• Professional property valuations focusing on location and services
• Potentially higher home loan interest rates
Maximising Your Borrowing Capacity by Property Type
Your borrowing capacity varies significantly based on property type choice. To optimise your position:
- Get pre-approved early to understand your limits across different property types
- Factor in stamp duty variations between states and property values
- Consider an offset account to reduce interest payments regardless of property type
- Compare both variable home loan rates and fixed interest rate home loan options
As a St John Ambulance employee, you may access LMI waivers for paramedics or no LMI loans for paramedics depending on the property type and lender policies.
Streamlined Application Process Considerations
The streamlined application process varies by property type. Established houses typically have faster approval times, while new construction or unusual property types may require additional documentation and longer processing times.
Ensure you have current bank statements and employment verification ready, regardless of property type. Some lenders offer interest rate discounts for certain property types or employment sectors.
Making Property Type Decisions
When choosing between property types, consider:
• Your long-term housing needs
• Available deposit and ongoing repayment capacity
• Local property market conditions
• Future resale potential
• Ongoing maintenance and body corporate costs (for units)
Whether you're buying your first home or buying your next home, understanding how property types affect your home loan terms helps you access Home Loan options from banks and lenders across Australia that match your circumstances.
The right property type choice, combined with appropriate loan structuring, can save you thousands in interest payments and provide a solid foundation for your property ownership journey. Consider how different property types align with your career at St John Ambulance and long-term financial goals.
Call one of our team or book an appointment at a time that works for you to discuss how different property types might affect your home loan options and find the most suitable solution for your circumstances.
