FAQs
Austrata Finance strata loans help strata schemes remedy building issues sooner and without depleting sinking funds or raising a large one-off levy. Listed below are answers to the key things you need to know about Austrata Finance loans. If you can’t find the information you are looking for, get in touch with us to discuss.
What can we use strata borrowing for?
Funds can be used to pay for building repairs, including the replacement of flammable cladding, upgrades to your building, insurances, green initiatives and/or litigation.
Will strata borrowing affect the value of my unit?
A strata loan is generally used to pay for building works which improves the value of each unit and/or prevents the value of each unit deteriorating. A strata loan is an ongoing obligation of the Owners Corporation which the purchaser will take into consideration, balancing the characteristics of the unit and the amenities of the building against the value of ongoing levy repayments.
What happens if I want to sell my unit?
Each unit owner pays levies to your Owners Corporation from which the loan repayments are made. You are responsible for any levies owing up until the date you sell your unit, and generally if there are any outstanding levies then these will be deducted from the sale proceeds. The incoming purchaser then continues to pay levies to your Owners Corporation, along with all other unit owners, from which the ongoing loan repayments are made.
What is the minimum and maximum loan term?
The minimum loan term is 3 years, and the maximum loan term is 15 years.
Can the loan be paid out early?
Yes, the loan can be repaid at any time. Additional fees will only be charged if there is a fixed interest rate that needs to be broken.
What is the interest rate?
The interest rate is variable based on the loan amount and type of strata property.
Can we draw the loan in multiple instalments?
Our standard loan and the Austrata Hybrid Loan® can accommodate multiple loan drawdowns over a 12-month period. Our concise loan is drawn in one lump sum.
I’m on the strata committee, is there any extra risk for me?
No. Being on the committee or signing the loan documents does not create any additional obligations for you.
How much will you lend?
The minimum amount we will lend is $50,000.
What security do I need to offer?
The loan is unsecured, you do not need to offer any security.
What fees and charges apply?
A Loan Application Fee of $500 is applicable, refundable if we do not approve your loan. An establishment fee also applies to the Austrata Hybrid Loan®, the fee dependent on the amount borrowed. After that there are no more fees and charges, other than if a loan is repaid early during a fixed interest rate period, or if there is default on the loan.
Will you lend to commercial strata buildings?
Yes, we lend to commercial strata schemes and part residential and part commercial strata schemes. Terms and conditions may vary for commercial strata schemes.
