Apartments under 50 square metres - who will lend?
- Thread starter Harriet
- Start date
I got my loan for a 48m2 appartment through ANZ. They would however only do 65% LVR on it so just took out another loan on my PPOR to cover the difference. I have noticed on some posts that people have been able to get 80% LVR though and I think if I had of pushed I could have done better.
Thanks! I'll keep that in mind. Did you have any trouble from a trust point of view (if that's your method of buying)? Also, is it an apartment or a studio?
I could come up with a 35 - 40% desposit if necessary. Not ideal, but I could do it.
My research here at the forum suggests CBA is also a good place to start.
I generally use my local mortgage broker, but this might be one for Rolf!
Ciao. Happy Sunday.
I am looking at a 48 sq m studio. So it sounds as though i shouldn't have a big issue with it.
One small cavat may be the PC and the actual block
some lenders dont like some Pcs and may have overexposure.
As RT already said though, id be surprised if comm didnt do that, STB certainly would .
ta
rolf
some lenders dont like some Pcs and may have overexposure.
As RT already said though, id be surprised if comm didnt do that, STB certainly would .
ta
rolf
I know this may be a dumb question - but Rolf, what is the PC?
Post Code
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rolf
ta
rolf
Sounds like you're looking at 32 sqM. CBA still an option and STG as mentioned with CBA leading the pack. as Rolf mentioned though, lenders will try and minimise their exposure at any one location. As a rule of thumb CBA used to limit it to 20% a while back but this may have tightened even more now. I know their appetite for sub 30 sqm has diminished.
If all else fails Widebay is an option. I'm just putting one though for 14.4sqm at 70% in Melb with them. they're a bit of a pain to deal with but at the end of the day that's my (your MB's) problem not yours.
If you're MB's unsure about who will and won't touch it I'm sure Rolf, myself or someone here would be happy to take i onboard and contact the lenders in question to see if the security address is accepatable to them. CBA have a list of address where they have enough exposure 9not that many of their staff know about it
).Regards
Steve
Hi Harriet,
I bought in my name only so I cant help with the trust side and it is a managed studio appartment whatever that is. It is 1 bedroom, lounge room, kitchen and bathroom/laundry. Returns 6.5% net at present.
Cheers
When you're looking at smaller apartments, make sure you're clear on the size and determine if the quoted size include the balcony space and/or car space. Many lenders will lend as small as 40 square meters but it must be the living area (not including balcony or car park).
Another potential problem is due to the limited pool of lenders for this type of unit, some lenders may decide they're over exposed to the development (whole building) and simply not lend any further even if it does meet all their other requirements. There's no practical way to determine if this will be a problem short of checking the specific address with the lender before the application is submitted.
I've managed to get funds for apartments as small as 20 square meters in a trust structure in the last 6 months. It's not really difficult, but it must be properly considered.
Another potential problem is due to the limited pool of lenders for this type of unit, some lenders may decide they're over exposed to the development (whole building) and simply not lend any further even if it does meet all their other requirements. There's no practical way to determine if this will be a problem short of checking the specific address with the lender before the application is submitted.
I've managed to get funds for apartments as small as 20 square meters in a trust structure in the last 6 months. It's not really difficult, but it must be properly considered.
