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Pearl, if it really not ever mentioned to you that the unit is for student accommodation only before you signed the contract and the contract does not disclose this, you have a very strong case to rescind the contract (get out and not having to pay builder any money). You can easily argue...

Pearl, I noticed your status says you are from Perth and the IP is in Melb. Did you and your sis live in MElb before you bought the property? When you bought the property, did you have a look around and do a bit of research, and did you both consider the price to be reasonable at the time...

did they say they wont lend you ANY money at all for it? or just not 70%? if latter, ask them how much they will lend you and maybe somehow you can make up the difference (?) sorry to hear about it =( I was never aware about banks not inclining to approve for loans over properties...