The inner parts of each city (CBD and surrounds) are considered to be a high risk by many lenders. The reasons for this are:
* There are a high number of investors buying in those areas, so prices tend to fluctuate more than other areas.
* High rise units often are sold in large numbers at the same time (e.g. when a development is completed) which can mean the property market becomes flooded in the short term.
Despite this many investors and people who prefer inner city living like to buy CBD apartments
. Luckily some lenders can still assist with this type of property as security for a home loan.
* 80% home loan: Available from almost all lenders. Some more conservative lenders restrict to only 65% or 70% of the property value however the majority are fine with 80%.
* 90% home loan: Only two of our lenders can consider a mortgage for 90% for a CBD apartment.
* 95% home loan: Only one of our lenders can consider these loans however only around 1 in 10 customers qualifies for a 95% loan. So in practise we find the maximum loan available is for 90% + LMI.
*>90% to 105%: Available only as a guarantor or family pledge home loan
Good luck with your purchase.