Banks not financing under 50m2?

Hi I was recently speaking with an agent in North Brissy and according to him banks wont cover a floor space of less than 50m2.

Its a fairly open ended statement and I'm sure if you looked hard enough you get finance from someone (Loan shark ) hehe

Just wondering what peoples thoughts and experiences are on the matter

 

Haven't done so since Noah was a lad.

Hasn't come up on PC but often raised on the old SS forum.

 

Haha agents giving finance advice. You won't have to look to hard, no need to go to loan sharks unless you like to live a little dangerously. Walk into the country's larger bank (CBA) if living area is above 40sqm.

Hmm its more like 35-40 sqm where you have fewer options now - plenty of options available above 40sqm. Studios can be tricky with lower LVRs too.

NAB have a 50sqm rule (including all internal, external, garage, etc). But if the deals strong enough and the LVRs sub 80, you can do it below that mark too.

 

Some will, they all have different criteria. CBA will do 40m2.

Ha - @Redom beat me too it

 

Can still finance sub 50m2 - depends on the parameters of the deal (LVR in particular).

Cheers

Jamie

 

As mentioned - yes you can....options in big 4 also non-bank lenders.

Cheers Ivan

 

Anyone seen the new Andrew Winter show about people buying "Tiny Houses"? I find it interesting to see that most of these people seem to be broke otherwise they wouldn't be buying the places they're looking at yet we know no bank will finance a place that's so small - circa 30sqm in some cases. I don't get it. If you can only afford 100k or whatever but you can't finance it that means you've got cash so why not buy a normal place?

 

The smallest appartment I've financed was 22 sqm at 80% LVR.

Less than 50 sqm will restrict your options but finance is still readily available. Below 40 sqm is where things get fairly tricky.

 

Is that an OZ or US show? I've been watching the US show this week and the people want to live mortgage free and often "sustainable" lifestyles.

 

Pretty much no bank will finance if the TOTAL space is under 50m2 (incl car balcony etc). And then generally the internal floor space needs to be at least 40m2

 

Check this property out 5/5 Station Street Tugun Qld 4224 - Unit for Sale #117495747 - realestate.com.au
They have been trying to sell this forever but cant due to slightly being under 50m2 in total. If this unit had a car space it woulda been sold 6 months ago. It seems well priced but you pretty much need to pay in cash and selling will be a nightmare

 

People spout garbage which isn't true all the time about lenders policy requirements - not difficult at all to lend in the 40-50sqm space - below that it just comes down to LVR.

 

Oz show, I didn't know there was a US version of it. Started a couple of weeks ago.

 

What they said... ^^^^^^^^^ sub 50M2 is relatively straightforward

 

Wow that's grey if ive ever seen it

 

Some people do not know what they are talking about. It is easy to get finance for a unit that is between 40 & 50m2 ofcourse as long as it has a car space or is over 50m2 on title. I have had brokers who didnt actually quite understand this so the responses do not suprise me. Some reading here Units less than 50m2

 

Doesn't even need to have a car space or balcony included into calculations - those lenders which take the lower limits specifically exclude utilising car space/balcony into the sqm calculations.

Have a 90% LVR 40sqm apartment with no car space settling today - nice simple transaction.

 

Fair enough, I have tried numerous times with no joy. My broker just told me that the location of the dwelling is also taken into account. If its in a location with lots of apartments it will be very hard for a smaller apartment. Which lender did you use?

 

Inov8ive - please listen to these guys, there are options for any type of apt and size and yes, it will restrict the choice/ pool of lenders however there is a lender for everyone, no matter the size of apartment or whether car park is attached it can be financed, usually outside the big 4 with non bank lenders. Corey mentioned his we had 29 sqm this week with a non bank lender - no problem and no car park.

Cheers Ivan

 

In regards to "small" apartments, I believe in most cases the location is more to do with the appropriateness of a cosy apartment in the location. Near Sydney CBD, no sweat. In Gundagai, not so likely.