Heritage Listed Property Loans

Historical properties, including heritage listed properties have a unique appeal to them in Australia. However, did you know that you can buy certain properties if you engage the right lender?

Heritage listed properties have a special place in Australian history and culture, and they can be a great investment. However, there are some unique considerations to keep in mind when financing a heritage listed property.

In this article, we’ll explain the process of getting a mortgage for a heritage listed property in Australia. We’ll also provide tips for finding a lender who will approve your loan.

What is a Heritage Listed Property?

A heritage listed property is a building or structure that has been recognised by the government as being of historical or cultural significance. These properties are protected by law, and any changes to them must be approved by the government.

There are different levels of heritage listing in Australia, depending on the significance of the property. The most important level is a “Commonwealth heritage listing,” which means that the property is considered to be of national significance.

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Qualifying Criteria for a Heritage Listed Property

Historic/Socio-cultural Value

A heritage listed property must have some kind of historical or socio-cultural significance. This could mean that the property is associated with a significant event or person, or that it represents a particular style of architecture or design.

For example, a property might be listed because it was once the home of a famous artist, or because it is an example of a particular type of colonial architecture.

Architectural or Artistic Significance with Respect to Design and Style

A heritage listed property must also have some kind of architectural or artistic significance. This means that the property must be well-designed or well-constructed, and that it must represent a particular style of architecture or design.

For example, a property might be listed because it is an example of Gothic Revival architecture, or because it is a well-preserved example of a vernacular style of architecture.

Materials Used for Construction

The materials used to construct a heritage listed property can also be a factor in determining its significance. For example, a property might be listed because it is made of a rare or endangered material, or because it is an example of a particular type of construction technique.

For example, a property might be listed because it is made of sandstone, or because it is an example of timber-framed construction.

Industrial Heritage

Industrial heritage is related to cultural heritage but instead deals with the preservation of buildings and industry artefacts that are passed on by previous generations and maintained and protected for future generations. This type of heritage can include factories, mills, mines, and other industrial sites.

Industrial heritage is important because it can help us to understand the history of our industrial development, and it can also provide us with insights into the working conditions of our ancestors.

In addition to these four conditions, there are a number of other factors that can be considered when determining whether a property is heritage listed. These factors can include the age of the property, its location, and its condition.

Financing a Heritage Listed Property

Financing a heritage listed property can be more challenging than financing a regular property. This is because lenders are often hesitant to lend money for properties that are subject to government restrictions.

However, there are lenders who specialise in financing heritage listed properties. These lenders understand the unique challenges of financing these properties, and they are more likely to approve your loan.

How Much Can You Borrow as an Australian Expat?

The amount you can borrow as an Australian expat will depend on a number of factors, including your income, your credit history, and the property you’re interested in buying.

  • In general, you can expect to borrow up to 70-80% of the property value. However, there are a few lenders who may be willing to lend you more, depending on your circumstances.
  • If you’re a first home buyer, you may be eligible for a government-backed loan that allows you to borrow up to 95% of the property value. However, there are some restrictions on these loans, so you’ll need to meet certain criteria.
  • If you have a guarantor, you may be able to borrow up to 100% of the property value. A guarantor is someone who agrees to be responsible for your loan payments if you default.
  • If you have a low-doc loan, you may be able to borrow up to 80% of the property value. However, these loans are typically more expensive than traditional loans, so you’ll need to weigh the pros and cons before applying.

It’s important to note that the lending criteria for Australian expats living overseas can be more stringent than the criteria for Australian residents. This is because lenders are more likely to lend to people who are living in Australia and who have a stable income.

Additional Requirements for Australian Expats

Here are some additional things to keep in mind if you’re an Australian expat living overseas and you’re considering buying a property in Australia:

  • You’ll need to provide proof of income from your overseas employment.
  • You’ll need to provide evidence of your overseas assets.
  • You’ll need to have a good credit history in Australia or your home country.
  • You may need to pay a higher interest rate than an Australian resident.

How to Get a Mortgage for a Heritage Listed Property

The process of getting a mortgage for a heritage listed property is similar to the process of getting a mortgage for a regular property. However, there are a few additional steps that you will need to take.

First, you will need to find a lender who specialises in financing heritage listed properties. You can find a list of these lenders on the website of the Australian government’s heritage listing authority.

Once you have found a lender, you will need to provide them with information about the property, including its heritage listing status. You will also need to provide them with your financial information, such as your income and assets.

The lender will then assess your application and decide whether or not to approve your loan. If your loan is approved, you will need to sign a mortgage agreement.

What are the Benefits and Challenges of Buying a Heritage Listed Property?

Benefits of Buying a Heritage Listed Property

  • Historic significance: Heritage listed properties are often associated with important historical events or people. This can make them a source of pride and satisfaction for the owner, and they can also be a valuable investment.
  • High demand: Heritage listed properties are often located in desirable areas, and they can be in high demand. This can make them more valuable than non-heritage listed properties.
  • High value: Heritage listed properties are often well-maintained and have a long lifespan. This can make them a good investment for the long term.
  • Pride of ownership: Owning a heritage listed property can give you a sense of pride and satisfaction. You will be able to live in a property that is part of Australian history, and you will be able to help to preserve it for future generations.
  • Sense of community: Heritage listed properties are often located in close-knit communities. This can be a great way to meet new people and make friends.
  • Investment potential: Heritage listed properties can be a good investment. They are often in high demand, and they can appreciate in value over time.

Challenges of Buying a Heritage Listed Property

  • Government restrictions: Heritage listed properties are subject to government restrictions. This means that you may not be able to make changes to the property without permission from the heritage council. This can make it difficult to renovate or add extensions to the property.
  • Higher insurance premiums: Heritage listed properties are often more expensive to insure. This is because they are considered to be more at risk of damage or theft.
  • More difficult to sell or redevelop: Heritage listed properties can be more difficult to sell or redevelop. This is because potential buyers may be less interested in properties that are subject to government restrictions.
  • Can be more expensive to maintain: Heritage listed properties can be more expensive to maintain. This is because they may require special materials or techniques to be repaired or renovated.

Why are the Banks Conservative about Heritage Listed Properties?

Heritage listed properties are those that are considered to be of historical or architectural significance. They are often subject to strict regulations that can make them difficult to sell or redevelop. This can make them a riskier investment for banks, which is why they are often more conservative about lending for them.

There are a few reasons why banks are conservative about lending for heritage listed properties.

  • First, they may be more difficult to sell. This is because not everyone is interested in buying a property that is subject to strict regulations.
  • Second, they may be more difficult to redevelop. This is because any changes to the property may require the approval of the heritage council, which can be a lengthy and expensive process.
  • Third, they may be more expensive to insure. This is because the insurance company will need to take into account the additional risks associated with owning a heritage listed property.

Despite these risks, there are also some benefits to lending for heritage listed properties. First, they can be very valuable. This is because they are often in high demand and can command a premium price. Second, they can be a good investment for the long term. This is because they are often well-maintained and have a long lifespan.

Tips for Finding a Lender Who Will Approve Your Loan

When you’re looking for a lender to finance your heritage listed property, there are a few things you can do to increase your chances of getting approved for a loan.

First, make sure that you have a good credit score. A good credit score will show lenders that you are a responsible borrower.

Second, have a down payment of at least 20%. A larger down payment will make your loan more attractive to lenders.

Third, be prepared to provide the lender with information about the property’s heritage listing status. This will help the lender to understand the unique challenges of financing this type of property.

Get Help from the Right Mortgage Broker

Buying a heritage listed property can be a great way to invest in Australian history and culture. However, it’s important to understand the unique challenges of financing these properties before you make an offer.

If you’re considering buying a heritage listed property, be sure to do your research and find a lender who specialises in financing these types of properties. Our specialist mortgage brokers can help you understand your options and find the right lender for your needs.

Get in touch with us today to learn more about how we can help you buy your dream heritage listed property. If you’re ready to start the process, we’ll be here to help every step of the way.

Contact us today to get started!

Get a free Australian mortgage assessment today.

Apply online to get a free recommendation with real rates and repayments.

Frequently asked questions

There are also some challenges to buying a heritage listed property. These properties are subject to government restrictions, which can make it difficult to make changes to them. You may also have to pay higher insurance premiums for these properties.

There are a few different ways to find a heritage listed property for sale. You can search online listings, contact real estate agents, or attend property auctions.

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