Unit Block Lending in Sydney
Unit block lending is finance for a property made up of several residential units, usually held on one title. The question that usually decides the rest is whether a lender assesses it as residential or commercial lending, and that line is commonly drawn around four units, though it varies between lenders.
That decision can affect the terms, the ongoing conditions and how much of your own cash the purchase takes. The number of units, how they sit on title, how the property is used and how the rent is evidenced all feed into it.
We work with more than 60 lenders and can help identify which of them may consider a multi-unit security on residential terms, and what they are likely to want to see. Lender policy varies and eligibility criteria apply.
What a lender looks at on a block of units
- How many units and on what title | One title with six units is a different application from six strata lots.
- The rental evidence | Current leases, a rental assessment, and how much rent a lender will count toward servicing.
- Vacancy and tenant mix | A block with long-standing tenants reads differently from one that is half empty.
- Your income outside the property | Rent rarely carries the whole application on its own.
- The valuation | Multi-unit valuations take longer and have fewer comparable sales, which can hold up an otherwise clean application.
- The exit | How the property would be sold or refinanced later, particularly on a single title.
If your income is not a payslip
Many unit block buyers are developers, business owners, or investors whose income arrives in lumps rather than fortnightly. Several lenders treat that as one-off gains rather than ongoing income, which can stop an otherwise viable application. What usually helps is evidence, not argument: a longer history, documented consistency, and a lender whose policy may accommodate it.
What we do
We can help determine early whether your purchase falls under the residential or commercial line, so the application's shape is clearer from the start. Then we compare lenders that may consider it, prepare the evidence they'll likely want, and manage the process through to settlement. Each lender assesses an application against its own criteria, and timeframes vary.
Questions about title structure, tax and ownership belong with your solicitor and accountant. We work alongside them on the finance.
Work we have done
These are illustrative examples of individual client situations. Every application is assessed on its own merits by the lender, and the outcome depends entirely on the property and your own circumstances. Nothing below is an indication of a result you would receive.
Residential terms on a block that would usually go commercial
The situation: Investors buying a block of six units in Sydney.
What made it complicated: Many lenders treat a multi-unit block as a commercial security rather than a residential one. That usually means different terms and periodic reviews, which changes the economics of holding the property.
What we did: We identified lenders that may consider a block of this size on residential terms and how they prefer the application presented, so we approached them first rather than defaulting to a commercial submission.
The outcome: In this case the purchase was funded on residential terms. That was one lender’s assessment of one property and is not an indication of how yours would be treated. Lender policy on multi-unit security varies and eligibility criteria apply.
Income that does not look like a payslip
The situation: A property developer buying a unit block.
What made it complicated: Development profits do not arrive as a regular salary. Several lenders had treated the income as one-off capital gains rather than ongoing earnings, which meant the application would not service on the usual assessment.
What we did: We built the case rather than resubmitting it. That meant gathering evidence the income had been consistent over several years, documenting the pipeline of projects behind it, and working through the detail with a lender who would assess it properly.
The outcome: The purchase went ahead on residential terms, so the client kept more of their cash available for the next project. Income assessment policies differ between lenders, and eligibility criteria apply.
Using an asset you already own instead of more cash
The situation: Two business partners buying a unit block together.
What made it complicated: They had the income, but their cash covered only a deposit and stamp duty. They had been told the maximum loan-to-value ratio available to them was lower than they needed.
What we did: We looked at everything they owned, not just the property they were buying. One of them held another property with available equity, which could be used as additional security so the deposit came from equity rather than cash.
The outcome: In this case they completed the purchase and kept their cash for renovations. Whether additional security is available or appropriate depends on your own assets and your lender’s policy and assessment, so this is not an indication of what you would be offered. Using a second property as security is not right for everyone, because it links the two loans together and affects what happens when you sell. It is worth talking through before you commit.