Home Loan for Studio Apartment

Hi guys,

I am soon to settle on an off the plan apartment (around April) and am still looking for the best home loan for me. This will be an investment property. The apartment is probably considered a studio by most lenders, although classified by the developer as a 1 bedroom suite. There is a dividing wall between living area and bedroom, but no door. Internal area 45m2, balcony 9m2. The apartment is in Sydney CBD 2000, and classified as high density.

I have talked to several online brokers, who have suggested CBA primarily. I was wondering if anyone had any suggestions on which other banks/lenders would accept this property. I am looking for a bank that is willing to lend 80% LVR and I would like an I/O loan. Westpac in particular, does anyone know if they will lend up to 80% for high density studio apartments? I have gotten quite mixed responses from brokers with regards to Westpac.

Thanks a lot in advance guys!

 

How much is this for? Do you know what the valuation is?

 

Your options are really dependent on the specific property address.

CBA can go up to 90% (restriction applies due to postcode).

Westpac and St George can go to 95% but they have a security register so they apply specific restrictions on certain properties/developments.

You have a fair number of options @ 45sqm but you may find your biggest hurdle may be with either the valuation or location of the development.

You definitely need to use upfront valuations.

 

The purchase price is around $750k. Haven't done a valuation yet as I haven't formally applied for a loan yet. Is it worth paying for a valuation on my own?

 

Upfront valuations are free with most lenders so definitely do this prior to potentially having multiple hits on your credit file.

 

Ok thanks. I am pretty sure that the apartment is within a restricted postcode, do you know what LVR Westpac will go to?

Also, will I get access to the upfront valuation or do they only provide me with a dollar figure?

 

Westpac works off a postcode and the specific property address.

If you state the address (no need for the unit number) then I can tell you if its in the security register and the appropriate restrictions (e.g they may not touch it or go to say 80% LVR).

You dont get access to the valuation but the banker or broker can go through the details of the valuation with you.

 

How much deposit can you come up with if the val falls short?

 

Thanks. The address is 88 Hay St Sydney NSW 2000.

 

I have enough of a deposit for 70% LVR, so that is not really the problem. I am just trying to maximise the tax benefits and borrow up to 80% if possible.

 

Not sure if the actual suburb is Sydney or Haymarket. They told me Sydney but I think its Haymarket

 

How long till the settlement?.

 

Early to mid April

 

Well that's on your side and gives you ample time to get everything sorted ,other people have more experience in this site then me and can offer better advice..good luck..

 

No restrictions with Westpac and St George for that address so it would be subject to normal lending and valuation guidelines.

 

Yet...
Westpac update their register as their book fills up don’t they?

 

Kind of weird why pretty much no brokers have suggested Westpac. I am considering Westpac because I have heard that they are willing to lend more compared to other lenders. Any ideas if this is true based on same income?

 

Hey Tobe they may or may not but they work off the register as per the one available on their introducer website so effective today there is no restriction.

Westpac is great overall but everyone has specific requirements due to their employment, income type, etc.

 

It’s not on their register yet because it hasn’t been completed and can’t be valued. It’s not a green light from westpac it’s no light.

Or have you seen OTP listed on the register prior to them being ready to value?