Join Australia's most dynamic and respected property investment community

can you get finance on a 62m2 unit?

Discussion in 'Property Finance' started by Elives, 5th Sep, 2015.

  1. Elives

    Elives Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    539
    Location:
    Queensland
    Whats the smallest m2 a unit can be before you'll struggle to get finance? and which lenders will finance small units?

    Cheers, Elives
     
  2. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    641
    Location:
    Sydney
    62sqm is not small - its under 40sqm where you will have issues.

    CBA is the best in this space.

    There are lenders like Macquarie that will do balance sheet lending for under 40sqm depending on the strength of the application but CBA is the main lender in this space.

    Security must be fully self contained - so needs to have its own kitchen and bathroom and doesn't include garage space and balconies.
     
  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,104
    Location:
    Melbourne, Nationwide
    Quite a few lenders won't finance a property when the size is below 50sqm. If the property is below 40sqm, almost all lenders aren't willing to use it as security.

    Of the very small handful of lenders that will fund properties below 40sqm, there's generally heavy restrictions on LVR.

    Properties above 50sqm (such as 62.5 sqm) aren't a problem. Also keep in mind that some lenders will include (or not) balcony space in their size calculations.
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,165
    Location:
    Gold Coast
    40 can be ok with cba

    Mostly u want 50 Liv space to provide the largest spread of lenders

    Ta
    R
     
  5. Mick C

    Mick C Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    206
    Location:
    Sydney
    65 living is a standard brand new 2 bedroom these days, it's not small from a "lenders point of view" but yes it's small from an investor point of view.

    All banks will fund any units over 50 sq.

    40 sq is the magic number, any under 40 sq you will be limited on choice of lenders.