The Best Loans for Small Studio Apartments Under 25 Square Metres

Studio apartments under 25 square metres can be a challenge to finance, but there are options available for buyers. Most lenders cap the loan-to-value ratio (LVR) at 60% for such small spaces, meaning borrowers need to provide a 40% deposit. However, with lender's mortgage insurance (LMI), it’s possible to increase the LVR to 80%.

Studio apartment loans with higher LVRs allow buyers to enter the market with a smaller deposit. While loans for units under 25 square metres are more restrictive, securing LMI can provide more flexibility. Mortgage options for these small spaces are particularly attractive for buyers wanting to live in high-demand areas where larger apartments may be out of reach.

Additionally, comparing studio apartment loans and finding the right lender who offers favourable terms for compact apartments is essential. Some lenders are more accommodating when it comes to financing smaller units, making it easier to secure the home loan you need.

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