Minimum size

[coolcup69]

Hi there

Do most lenders refuse to lend against units below a specific size? I have been doing a bit of research and found out some interesting minimum sizes.

Ubank - not less than 50 sqm
Loans.com.au - not less than 40 sqm

Do you guys know of any others? Bankwest for example? Is it only the "cheap" online lenders that do this?

Cheers

 

[Shaneelastic]

I prefer a minimum double D but that's just personal opinion

 

[Aaron_C]

Fs are better.

All lenders have a size restrictions. Most have 50 sqm cut off for living areas - so this doesn't include balcony or car parks. Buy under this amount at your own peril.

 

[Shahin_Afarin]

Depends on a number of things, namely the LVR and the location.

E.g. if the location is city like Surry Hills, Woolloomooloo, etc then you can go as low as 35sqm (internal) and up to 80% LVR.

Whether or not they are good investments is another story.

 

[jonmardell]

Hi there

Do most lenders refuse to lend against units below a specific size? I have been doing a bit of research and found out some interesting minimum sizes.

Ubank - not less than 50 sqm
Loans.com.au - not less than 40 sqm

Do you guys know of any others? Bankwest for example? Is it only the "cheap" online lenders that do this?

Cheers

if you keep the LVR below 80% then a couple of the majors will go to 30m2 but the smaller lenders most are 50m2

 

[Rolf Latham]

More specifcally, rather than worrying what a lender WONT do, what is the specicifc asset you are looking to finance, and what amount of deposit, and will it be owner occ or Investment.

Seems to make more sense to approach things that way unless you are looking to build some form of exclusion list for a borrowers matrix

ta
rolf

 

[coolcup69]

Does anyone know if Adelaide Bank lend against units which are 41 sqm in area?

 

[Aaron_C]

Does anyone know if Adelaide Bank lend against units which are 41 sqm in area?

No they won't....ABL has a lot of securitised funds which demand 50 sqm or more.

 

[Rolf Latham]

Does anyone know if Adelaide Bank lend against units which are 41 sqm in area?

why the specific interest for ABL?

ta
rolf

 

[coolcup69]

No they won't....ABL has a lot of securitised funds which demand 50 sqm or more.

Thanks Aaron. I also sent the same enquiry to the Adelaide Bank contact us page. They forwarded the enquiry to a mortgage broker who responded to me as follows:

Adelaide bank can accommodate lending on a 41sqm unit.

Sounds like that statement is inconsistent with your experience to date?? I am a bit suspicious when he says "can accommodate" - does this mean with additional terms / conditions or lower LVR etc? Odd.

 

[coolcup69]

why the specific interest for ABL?

ta
rolf

Hi Rolf

I am quite interested in their fixed 2 year rate with 100% offset. Gives me the certainty and flexibility I need for the coming two years. Any concerns / insights you might have regarding them?

 

[Mick C]

We have done 35-40 with ABL via mortgage mangers, their policy are as follow;

* 40 SQM exclusive of balcony car space etc at LVR 80% or less. ABL policy OR
* 50 SQM including balcony, car space etc where LMI is required- ABL policy

ABL 2 years fixed at 4.79% with an 100% offset is neat ( one of the few that allows for an fixed with offset) ; have you consider going to a standard lender that accepts units as small as 35? incase you apply for pre-approval and don't end up buying this one but find a 2nd unit that's 30-38 etc...what will happen then? ABL will reject the deal.

So my advice, if your not 100% sure what unit size you will be buying at; or it's under 50 and you don't yet have a signed contract- your best to get an pre-approval with a lender whos policy fits smaller units under 40, you can have a mixture of fix rate + variable rate with offset??

Regards

 

[Rolf Latham]

Hi Rolf

I am quite interested in their fixed 2 year rate with 100% offset. Gives me the certainty and flexibility I need for the coming two years. Any concerns / insights you might have regarding them?

ABL is an ok product we do lots, both retail and a little via MM

You obviously have a specific property in mind

Get a val done before you apply, use a mortgage manager, rather than ABL direct. Mick C can help you with all those

ta

rolf