Studio Apartment Loans for First-Time Buyers: What You Need to Know

First-time buyers looking to purchase a studio apartment can benefit from various government schemes and loan options designed to make homeownership more affordable. For studio apartments 35 square metres or larger, the First Home Buyers Guarantee (FHBG) allows first-time buyers to secure a loan with a loan-to-value ratio (LVR) of up to 95%. This reduces the required deposit and makes entering the property market easier.

For smaller studio apartments, under 25 square metres, the LVR is generally capped at 60%. However, with lender's mortgage insurance (LMI), first-time buyers can push the LVR up to 80%, reducing the need for a large deposit. This is ideal for those looking for a compact and affordable home.

Comparing different studio apartment loans is essential, as not all lenders offer the same terms. First-time buyers should seek out lenders who provide flexible options for smaller units, ensuring they can secure a mortgage that fits their budget.

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