Today St George reviewed their minimum unit size to 35 m2 for properties in some locations in Melbourne. They will not accept properties in the postcodes 3141, 3181, 3182, 3183, 3121 and 3207 up to 80% LVR. LMI is not available for home loans secured by smaller units.
Previously they announced that they would accept small units & studio apartments in some inner Sydney postcodes such as 2010, 2011 and 2021. This is a policy alignment with their owner Westpac, who has a similar policy.
Is this everywhere?
No, in other locations St George’s minimum floor size requirement of 50 square metres (excluding balconies) remains in place. Anything with a floor size less than this is a policy exception and will require prior referral to the Bank for consideration (any applications where the floor size is 25 square metres or less will not be considered).
There are other lenders who can still consider small units down to 18 m2 for a mortgage. The loan must be for no more than 80% of the property value.