Home Loan for Studio Apartment

Discussion in 'Loans & Mortgage Brokers' started by Sir Savien, 27th Jan, 2019.

Join Australia's most dynamic and respected property investment community
  1. Sir Savien

    Sir Savien Active Member

    Joined:
    27th Jan, 2019
    Posts:
    25
    Location:
    Sydney
    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!
     
  2. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    1,694
    Location:
    Australia
    How much is this for? Do you know what the valuation is?
     
  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    1,079
    Location:
    Sydney
    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.
     
  4. Sir Savien

    Sir Savien Active Member

    Joined:
    27th Jan, 2019
    Posts:
    25
    Location:
    Sydney
    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?
     
  5. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    1,079
    Location:
    Sydney
    Upfront valuations are free with most lenders so definitely do this prior to potentially having multiple hits on your credit file.
     
  6. Sir Savien

    Sir Savien Active Member

    Joined:
    27th Jan, 2019
    Posts:
    25
    Location:
    Sydney
    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?
     
  7. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    1,079
    Location:
    Sydney
    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.
     
  8. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    1,694
    Location:
    Australia
    How much deposit can you come up with if the val falls short?
     
  9. Sir Savien

    Sir Savien Active Member

    Joined:
    27th Jan, 2019
    Posts:
    25
    Location:
    Sydney
    Thanks. The address is 88 Hay St Sydney NSW 2000.
     
  10. Sir Savien

    Sir Savien Active Member

    Joined:
    27th Jan, 2019
    Posts:
    25
    Location:
    Sydney
    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.
     
  11. Sir Savien

    Sir Savien Active Member

    Joined:
    27th Jan, 2019
    Posts:
    25
    Location:
    Sydney
    Not sure if the actual suburb is Sydney or Haymarket. They told me Sydney but I think its Haymarket
     
  12. willair

    willair Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    3,713
    Location:
    ..Brisbane..
    How long till the settlement?.
     
  13. Sir Savien

    Sir Savien Active Member

    Joined:
    27th Jan, 2019
    Posts:
    25
    Location:
    Sydney
    Early to mid April
     
  14. willair

    willair Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    3,713
    Location:
    ..Brisbane..
    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..
     
    Last edited: 27th Jan, 2019
  15. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    1,079
    Location:
    Sydney
    No restrictions with Westpac and St George for that address so it would be subject to normal lending and valuation guidelines.
     
  16. tobe

    tobe Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,764
    Location:
    Melbourne
    Yet...
    Westpac update their register as their book fills up don’t they?
     
  17. Sir Savien

    Sir Savien Active Member

    Joined:
    27th Jan, 2019
    Posts:
    25
    Location:
    Sydney
    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?
     
  18. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    4,760
    Location:
    Gold Coast
    yes and no.

    it depends on the overall profile of the income and liability mix

    ta
    rolf
     
  19. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    1,079
    Location:
    Sydney
    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.
     
  20. tobe

    tobe Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,764
    Location:
    Melbourne
    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?