Finance for Warehouse Conversions



From: Mojo Jojo

My family recently bought a warehouse that had been converted into a townhouse in North Melbourne. They have rung 3 separate Mortgage Brokers and all have said that it will take alot longer to find finance for this property.

The reasons they have given are;

alot of the financial institutions are not quite sure how to handle warehouse conversions

the fact that its in a multizone area (commercial and residential)

possibly needing mortgage insurance, even when the bank thinks its OK, the insurers don't like warehouse conversions
in multizone areas

I find it all abit hard to understand, with that with the rush for inner city living, these institutions haven't got their act together with regards to warehouse living.

Can anyone shed anymore light on this? Especially with what the problem is with multizone areas.

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Reply: 1
From: Rolf Latham

Hi Mojo

Fun Fun Fun

You will find a lender that will most likely be happy to go to 80 %, but I have yet to find a mortgage insurance provider taht will provide cover beyond that. The reasons given are numerous and inlcude diff to sell, specialised security, local authority regs

Let us know how you get on because this is a common issue.


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Reply: 2
From: Michael G


What LVR are you seeking?, my thoughts are if it was 80% or something there may be more open minded lenders.

Either way best ask a good broker about this one - make them work for their commission :)

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