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.

What is a dual key apartment?

A dual-key apartment is a special type of apartment that 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 while maintaining 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 can get two different tenants in one property.

How Much Can You Borrow For A Dual Key Apartment?

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 80% of the property value.
• Guarantor loans: Borrow up to 100% with select lenders only.
• You must meet all other standard lending criteria.

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

With the help of a guarantor to secure your mortgage, you can actually borrow up to 100% of the property value plus the costs of completing the purchase.

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.

Why Are Dual Key Apartments Considered Higher Risk By Some Lenders?

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 Should You Check 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 Dual Key Apartment Loan

Our mortgage brokers can help you find a lender that understands dual key apartments and can assess your application based on your property, deposit, income and borrowing goals.

Call us today on 1300 889 743 or enquire online to speak with a mortgage broker.