My cousin is renting in Darlinghurst and one of her neighbours has offered her the first opportunity to buy his unit before he lists with an agent. She would like to buy it as a first home owner on a 95% lend. It is a 1 bed unit, 37sq in size, strata title. Does anyone know if she can get finance for this and if so, which lenders allow this? She's so excited about buying this place but I thought that a lend this high is difficult if not impossible?
high LVR lending on under 40sq unit?
- Thread starter beachgurl
- Start date
My daughter (19 years) recently bought a very tiny 1br unit with a 95% lend through CBA. Not sure of the size off hand, but it's SO small. Anyway, she got a good deal through them and was happy with the deal.
A mortgage broker will steer you in the right direction, too.
A mortgage broker will steer you in the right direction, too.
If it was 40sqm (not including balcony & carpark) it wouldn't be a problem. Since it's below 40sqm it will be difficult but most likely possible. It wouldn't be an optimal loan as she may have to pay a bit more for the loan.
If mortgage insurance isn't in the equation (LVR < 80%) there are a few lenders willing to consider units below 40sqm.
If mortgage insurance isn't in the equation (LVR < 80%) there are a few lenders willing to consider units below 40sqm.
Question to the MB's - has the "minimum size" allowed for 80% (or higher) LVR's changed over the years? I assume that with higher density living comes smaller apartments - so what might have been considered a "tiny" apartment say 20 year sago might be "quite large" now?.
Cheers,
The Y-man
Cheers,
The Y-man
It's probably gone the other way. CBA used to have a larger appetite as did St George but both have gone into their shells a little. Widebay will look at the smaller ones but a tough ask getting much more than 70-75%.
Regards
Steve
Any car space or balcony space in addittion to the 37m2? If there is and it brings it over 40m2 I maybe able to get 90% but that's the best I've been able to find.
Regards
Steve
The standard was once 50sqm, but many lenders have dropped it to 40sqm. I've had a few lenders finance properties half that size, but the LVRs need to be 80%, sometimes a lot lower. It's always done on a case by case basis as well, so you need to have a way out (finance clause) just in case.
Y-man, even in the last 7-8 years, especially with newly built apartments that I have seen in inner east Melb suburbs, I have seen 2 br apartments' sizes go from 80-100 sqm to 60-80sqm. Three bedrooms which were over 120 are now around 100. 1 bedders from 60-80 are now between 40-60.
The biggest changes I have seen is the move to galley kitchens from previous L or U-shape kicthens. And then smaller storage (ie BIR's) area & no linen cupboard.
Obviously more bang for the developers buck I guess. Makes a piece of dirt worth more I would argue.
St.George Specialised Mortgage Solutions may look at it as an exception to policy but be prepared for plenty of stress and heartache! I have recently got a few small units through including a 36sqm 1 bedder in Newtown. Since this one is in Darlinghurst they will consider it as inner city though so they will only look at it if the building is 4 stories or less.
