The Role of Unit Size in Determining Studio Apartment Loan Eligibility

When applying for a loan for a studio apartment, the size of the unit is a critical factor in determining loan eligibility. For apartments under 25 square metres, lenders typically cap the loan-to-value ratio (LVR) at 60%, making it necessary to provide a larger deposit. With lender's mortgage insurance (LMI), however, buyers can increase the LVR to 80%, making financing more accessible.

For studio apartments between 25 and 35 square metres, buyers can secure a loan with an LVR of up to 70%. This provides more flexibility and reduces the deposit required. Adding LMI increases the LVR to 80%, making studio apartment loans a viable option for many buyers.

If the apartment is over 35 square metres, first-time buyers can access up to 95% LVR through the First Home Buyers Guarantee (FHBG). This allows for a low deposit and makes securing a studio apartment loan more achievable.

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