What are university apartments?

In and around universities there are specialist buildings zoned and used for student accommodation.

These properties are usually quite different from normal units as they often have shared rooms with bunk beds, communal kitchens, shared bathrooms and common study areas.

Student accommodation units are often sold to investors seeking a cheaper property with a higher rental return but getting approved for a home loan can be tough.

How much can I borrow?

  • First home buyer: 70% of the property value.

  • Investor: 70% of the property value.

  • Low doc: 60% of the property value.

  • Guarantor: 105% of the property value (subject to available equity and limited guarantee agreement with guarantor). This option is helpful to students who want to buy their own unit.

  • Discounts: Competitive professional package and basic loan discounts are available for units without restrictive management agreements.

Note: Most lenders decline loans for university apartments no matter how much you borrow. We deal with a select few banks that do consider them acceptable security for a home loan.


Why are the banks so conservative?

Student accommodation obviously does not appeal to the general public and as a result may be more difficult to sell. If there are restrictions placed on the property such as a ban from the owner living in the property or any restrictions on people who are not students living in the block then this may also make the property more difficult to sell.

Banks that specialise in financing these apartments have “acceptable security” lists with their specific guidelines for each block. So if you are buying in UniCentral Griffith in QLD you may be allowed to borrow more or less than someone buying a UniLodge or UniResort apartment.

During university holidays many international students go home and at the end of the year it may be difficult to find new tenants. Because of this some types of accommodation have fluctuating rental incomes. We recommend that you check the management fees and the rental history of units prior to buying them.

The end result is that most banks will not approve home loans or investment loans for student accommodation. The banks that can consider home loans and low doc loans for student accommodation are conservative and restrict the amount you can borrow.

Why use us?

We aim to set an example by delivering what we promise: a higher level of service, better advice and better home loans.

pin_drop

Australia-wide services

We finance properties anywhere in Australia for people anywhere in the world.

monetization_on

Get incredible interest rates

Our relationships with our panel of lenders allow us to negotiate your interest rate.

thumb_up

We get tough loans approved

We can help you navigate the often complex pre-approval and application process.

favorite

Our customers love us

We receive hundreds of love letters from our customers.

Discover more reasons to use Home Loan Experts

How we find you the right solution

We get a complete understanding of where you’re at and what your ultimate goals are.
You’ll get a recommendation in just a few simple steps.

free assessment
1

Complete our free assessment form or call us.

situation
2

We assess your situation.

options
3

We look at all the options from our panel of lenders.

suitable home loan deals
4

We will find you the most suitable home loan deals.

Testimonials for Home loan experts

Facts
about us

50+

lenders on
our panel

$4B+

lent Australia-wide
and counting

Westpac
ANZ
Nab
AMP
Qudos
Firstmac
Common Wealth
St George
ING
Homeloans
Macquire
Suncorp
Pepper Money
Me Bank
Bankwest
75%

of our borrowers get
approved with a major bank

95%

of our borrowers get a discount
below the bank standard variable rate