Re: Studio apartment too small for a mortgage, why?
Posted: Thu May 09, 2019 3:07 pm
Hello Marshall. Welcome to the forums.
Studio apartments under 50 square meters (50m2) are considered unusual securities by lenders as they believe that there are less potential buyers that would be interested in such a property, as such it may take longer to sell compared to an ordinary unit.
Each lender has their own guidelines as to the minimum unit size they’ll accept. Typically lenders won’t accept units with an internal living space smaller than 50 m2 not counting the balcony and car space.
The unit size determines how much you can borrow:
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a studio apartment home loan.
Cheers,
Studio apartments under 50 square meters (50m2) are considered unusual securities by lenders as they believe that there are less potential buyers that would be interested in such a property, as such it may take longer to sell compared to an ordinary unit.
Each lender has their own guidelines as to the minimum unit size they’ll accept. Typically lenders won’t accept units with an internal living space smaller than 50 m2 not counting the balcony and car space.
The unit size determines how much you can borrow:
- Less than 18m2: There are no lenders who accept security smaller than 18m2.
- 18m2 to 40m2: You can borrow up to 80% of the property value.
- 40m2 to 50m2: You can borrow up to 90% of the property value.
- More than 50m2: You can borrow up to 95% of the property value.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a studio apartment home loan.
Cheers,