Call us now 1300-889-743

Dual Key Apartment Mortgage

Dual key apartments are a good solution for those wanting a space to both live in and rent out at the same time.

Unfortunately since they only appeal to a handful of buyers, banks find it difficult to sell them and do not consider them a reliable form of security.

Can I qualify for a home loan?

One of our banks can consider funding a dual key apartment if it meets the following criteria:

  • Size: The unit must be over 50m² including balconies and car spaces.
  • Location: High rise apartments can be considered on a case by case basis.
  • Loan amount: You can borrow up to 95% of the property value.
  • You must meet all other standard lending criteria.

If you think your bank will not approve your home loan, why not avoid damaging your credit file with unnecessary applications and contact us instead?

Call us today on 1300 889 743 or send us an online enquiry. We can help you find the right lender who can approve your mortgage.

What is a dual key apartment?

A dual key apartment is a special type of apartment which can be divided into two apartments – one larger one with at least one bedroom, kitchen and bathroom, and one studio apartment with its own smaller kitchen, bedroom and bathroom.

There is a single owner for the property and they share a common foyer but both sections have their own keys. This allows two different people to live in the same apartment and at the same time have their own privacy and space.

People prefer this type of apartment since they can rent out the studio apartment and use the rent to pay off their mortgage or reduce their living expenses. Investors prefer this because they are able to get two different tenants in one property.

Why don’t banks like dual key apartments?

Banks tend not to like this type of property because they appeal more to single people than to families. Hence, they view these as less popular and more difficult to sell in the event that the borrower defaults.

However, dual key apartments are great for young professionals and other single people who don’t mind sharing a unit. Investors can also benefit by renting out both units for two separate sources of rental income while avoiding the need to buy another property.

We know lenders who are less picky about your choice of security. Call us today on 1300 889 743 or ask for a free online quote and find out which lenders can approve your loan.

What to know before buying a dual key apartment

While they are not a new concept, dual key apartments are slowly becoming more popular with buyers and investors and more apartment blocks are offering them in their developments. Why not cash in on the trend before the rest of the market catches up?

The following are a few things you should consider before purchasing a dual key apartment:

  • Location: The location of the unit is important if you intend to rent it out. For example, if you plan to rent the second apartment to students, you should aim to buy a unit near a university.
  • Price: Dual key apartments can cost more than a standard unit or a small house. For example, a three bedroom unit can cost less than a three bedroom dual key apartment due to the additional kitchenette and bathroom.
  • Maintenance fees: The upkeep costs associated with a dual key apartment can be slightly higher than that of a standard unit.
  • Space: These apartments can be a bit small and you need to think carefully about what kind of tenant you want to live with. Investors may also have to deal with tenants having issues with each other.
  • Limited appeal: Dual key apartments appeal to a smaller target market and can be difficult to sell later on if you decide not to live in it or rent it out.
  • Family size: If you have a  multi-generational family, these units can allow you to live together while still allowing for privacy. In some countries, people let their parents take up the studio apartment so that they can live together.

Apply for a loan today

Which banks will approve your application?

Call us today on 1300 889 743 or enquire online and allow our expert brokers to assist you in getting your mortgage approved!

  • Madeline

    The property I’m buying meets both size and location requirements so I would really like to borrow 95% but can I do that even if I have several debts at the moment?

  • Hi Madeline, people with many debts such as credit card debts or personal loans are generally not accepted. However, as a general rule, if you have less than 5% of the price of the property in unsecured debts then you’re more likely to qualify. Please enquire online for a full assessment:
    https://www.homeloanexperts.com.au/free-quote/