Low Deposit Loan Options for Studio Apartments
For buyers with limited savings, low deposit loan options for studio apartments are an attractive choice. The loan-to-value ratio (LVR) plays a significant role in determining how much deposit is needed. For studio apartments under 25 square metres, the LVR is limited to 60%, which typically requires a larger deposit. However, with lender's mortgage insurance (LMI), buyers can increase the LVR to 80%, reducing the deposit requirement.
For studio apartments sized between 25 and 35 square metres, the LVR increases to 70%, making it easier to secure financing with a lower deposit. With LMI, buyers can still access 80% LVR loans, making studio apartment loans more affordable for compact homes.
Studio apartment loans for units over 35 square metres, particularly for first-time buyers, can reach an LVR of 95%. Under the First Home Buyers Guarantee (FHBG), this reduces the deposit required, making it easier for buyers to enter the property market with minimal savings.
Disclaimer: The content provided is for informational purposes only and is not financial advice. Please consult a professional advisor to discuss your specific situation.