Affordable Loans for City Studio Apartments: Maximising Your Chances

City studio apartments are often the ideal choice for buyers looking for compact, affordable living spaces. When it comes to securing a loan for these apartments, the loan-to-value ratio (LVR) plays a crucial role. For studio apartments under 25 square metres, lenders usually limit the LVR to 60%, but lender's mortgage insurance (LMI) can increase this to 80%, making city living more accessible.

For slightly larger units, between 25 and 35 square metres, the LVR is capped at 70%. However, with LMI, buyers can access loans with an LVR of 80%, giving them more financial flexibility. Studio apartment loans in bustling city centres are often in high demand, so it’s important to maximise your borrowing capacity.

If the studio apartment is over 35 square metres, buyers can benefit from a 95% LVR, particularly if they are first-time buyers under the First Home Buyers Guarantee (FHBG) scheme. This option provides the most affordable way to purchase a city apartment with a minimal deposit.

Disclaimer: The content provided is for informational purposes only and is not financial advice. Please consult a professional advisor to discuss your specific situation.