Property Purchase Loans
What Types Of Property Can You Buy?
5 min read- Finance Guide
- Updated 2026
Quick answer
Most lenders commonly accept around
5 core property paths
With lender policy changing by property type
- Standard homes Usually easiest
- Land and off the plan More conditions
- Specialised properties Often lower LVR
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Detailed explained
The type of property you buy has a direct effect on how easy the loan is to place, how much you may be able to borrow, and which lenders are worth considering. Established residential property is generally the most straightforward. As the property becomes more unusual, incomplete, remote, smaller, mixed use or harder to value, lender appetite often becomes more selective and maximum leverage may fall.
Common property categories
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Established houses are typically the most widely accepted property type because they are familiar, easier to value and easier for lenders to resell if needed
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Townhouses, duplexes, villas and many standard apartments are also commonly acceptable where size, location and marketability fit policy
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Vacant land, house and land packages and land with a separate building contract can be financed, but timing, title status and build conditions matter more
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Off the plan purchases can be suitable, but buyers need to allow for valuation risk, changing market conditions and longer lead times between exchange and completion
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LENDER APPETITE SNAPSHOT
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Standard homes
Usually strongest
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Specialised property
Usually lower
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Key point
The more unusual the property, the more important lender selection becomes
How property type affects the process
Pre-Approval
01
Confirm whether the target property is standard residential, land, off the plan or specialised security
Property
02
The contract, zoning, title, dwelling type, floor area and location are reviewed early
Valuation
03
Valuation risk is often highest for off the plan, small apartments, regional property and unusual dwellings
Settlement
04
Formal approval depends on both borrower strength and the lender being comfortable with the property as security
What property types lenders commonly accept
Established houses
Usually the most straightforward option for both owner occupiers and investors
Units and apartments
Commonly acceptable where the size, building quality and location fit lender policy
Townhouses, villas and duplexes
Often acceptable with mainstream lenders when the title and marketability are clear
House and land or vacant land
Usually possible, though land title, build timing and separate contract structure can matter
Off the plan property
Possible with many lenders, but buyers should expect greater focus on valuation and completion risk
Specialised or niche property
Small studios, serviced apartments, rural residential or mixed use property may need more specialist lender matching
Why property type matters
APRA requires ADIs from February 2026 to limit residential mortgage lending with a debt to income ratio of six times income or more to 20 percent of new lending, so borrowers with tighter servicing may need even cleaner property security to remain competitive
Need Help choosing the right property type?
Property types that need extra care
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01. Small apartments, serviced apartments and studio style dwellings can be harder because some lenders see them as less marketable security
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02. Vacant land can be acceptable, but some lenders want clearer build intentions or specific settlement timing and title conditions
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03. Off the plan purchases can create a gap between contract price and lender valuation if the market changes before completion
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04. Rural residential, mixed use and unusual construction types may still be financeable, but often at lower leverage or with a narrower lender pool
Common problems
Buying the right property is not just about what suits you. It also needs to fit lender policy. Problems usually show up when the security is unusual, the valuation is weaker than expected, or the buyer assumes every property type is treated the same
Property is outside standard policy
The property might be legal and saleable, but still sit outside the appetite of many mainstream lenders because of size, use, zoning or location.
Possible solutions include:
Target lenders that are comfortable with that security type- Contribute a larger deposit to reduce lender risk
- Provide clearer detail on title, zoning and intended use
- Use specialist lender selection rather than broad rate comparison only
Valuation shortfall
This is a major issue for off the plan purchases, unique homes and thinly traded locations where the lender values the property below the contract price.
Possible solutions include:
- Review comparable sales early where possible
- Allow extra cash to cover any gap between price and value
- Use a lender whose valuers are comfortable in that market
- Renegotiate price or rethink the asset if the shortfall is too large
Buying the wrong type for your strategy
A property might be financeable but still be a poor fit if maintenance, resale depth, vacancy risk or body corporate costs do not match your plan.
Possible solutions include:
- Match the property type to your budget and long term goal
- Check ongoing costs such as strata, maintenance and insurance
- Consider resale demand, not just purchase price
- Avoid relying on optimistic assumptions about rent or future value
Steps to choose the right property type
Step
01
Work out your budget, deposit and borrowing capacity first.
Step
02
Decide whether you want an established home, land, off the plan property or an investment asset.
Step
03
Check whether the property is standard or likely to need specialist lender selection.
Step
04
Review zoning, title, strata, floor area, location and overall marketability.
Step
05
Line up the right lender before paying deposits that may be hard to recover.
Step
06
Proceed once both the property and the loan structure genuinely fit your plan.
Speak with a Property Finance Specialist
Property purchase lending can vary significantly depending on the type of property you are buying, how standard it is, where it is located and how comfortable a lender is with that security.
A specialist can review the property, structure and borrower profile together and help identify which lenders may genuinely suit the deal.
Speak with a finance specialist about your property purchase
Submit the short form below and a property finance specialist can review the asset type, borrowing structure and likely lender options.
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