Financing Options for Studio Apartments: Maximising Your Loan Amount

When securing financing for a studio apartment, the loan-to-value ratio (LVR) is a key consideration. Studio apartment loans vary depending on the size of the unit. For apartments under 25 square metres, the LVR is typically capped at 60%. However, borrowers may be eligible for an LVR of up to 80% with lender’s mortgage insurance (LMI), making it possible to secure financing even for smaller apartments.

For apartments between 25 and 35 square metres, lenders generally offer an LVR of up to 70%. This increased borrowing capacity helps buyers looking for compact living options in high-demand areas. Studio apartment loans at this size can also be boosted to 80% LVR with LMI, offering more flexibility.

If the studio apartment is 35 square metres or larger, borrowers, especially first-home buyers, can access up to 95% LVR under the First Home Buyers Guarantee (FHBG) scheme. This significantly reduces the deposit needed and makes financing more accessible for larger studio apartments.

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