Apartment home loans

An apartment loan is usually a residential home loan with extra checks on the unit and building. Ordinary 1 or 2 bedroom apartments need these checks too.

Yes, if the apartment fits the lender's rules. One lender declining it does not rule out every lender.

I start with the address, internal floor area, layout, legal use and loan amount. That tells me whether the issue is the unit itself, the building or how the property is used.

Most lenders in this comparison exclude balconies, courtyards, car spaces and storage from the internal living area.

An advertisement might say 52 sqm when the apartment has 36 sqm inside plus a balcony and car space. Those extras can still help the value, but they do not normally turn a 36 sqm studio into a 52 sqm apartment for the bank's size check.

One current rule can use 50 sqm including the balcony and car parking, or 40 sqm without them. That is why I keep each measurement separate rather than trusting one total from the listing.

Some lenders accept studios above their minimum size. Others require a separate bedroom or exclude studios.

A lender may accept a studio at 80% LVR while its mortgage insurer refuses it with a smaller deposit.

I would also check that the property has permanent cooking and bathroom facilities, can be occupied as an ordinary residence and is not tied to student, hotel, serviced or short-stay use.

Some lenders have options below 40 sqm; others start around 40 or 50 sqm. Layout, location and loan limits still matter.

Lender guides: Commonwealth Bank · Bankwest · ANZ · Teachers Mutual Bank · People First Bank · Suncorp · Westpac · St George · NAB · Auswide · UBank · Macquarie · ME Bank · Firstmac

Lender rules checked 3 August 2026. This is a starting-point comparison of the lenders listed above, not a recommendation or credit advice. Policy can change without notice. Confirm the current property rule and full application requirements before relying on a loan option.

Your income can be fine and the apartment can be large enough, yet the bank may still say no to the building. It might already have too many loans in that complex, or it may limit lending because of the postcode, number of units or number of floors.

High-density definitions differ. I check the development details and ask the lender to confirm its position on the building. If the lender has rejected the building itself, read why a bank can reject an apartment building.

This example assumes the lender values the apartment at the $700k price. A lower valuation, LMI, purchase costs and the full application can change the cash required.

Another $70k could solve a lower loan limit. It will not solve a building the lender refuses, an apartment below its minimum size or an unresolved defect.

A normal apartment rented to a student is not the same as purpose-built student accommodation. An owner who occasionally uses a normal residential unit for short stays is also different from a unit tied to a hotel pool or compulsory letting agreement.

Cladding, structural work, water ingress or a special levy does not automatically rule out a loan. The lender checks the repair costs and funding, insurance, resale prospects and valuation. The apartment defects guide covers the records and repair evidence lenders ask for.

If you are under contract, start with the finance date, current strata records, engineering or fire reports, remediation plan, insurance and your share of the cost. Your solicitor, building specialist and insurer still need to advise on their parts.

A cheaper studio can mean a smaller deposit and lower repayments, but fewer options when you refinance, release equity or sell.

Another lender may require more internal space, a separate bedroom, a larger deposit or a different building and postcode assessment.

This is a finance check, not investment advice. A lender accepting the security does not prove the apartment is good value, easy to sell or likely to grow.

A lender may accept the apartment type and still value it below the contract price. Small floor area, an unusual layout, limited comparable sales, investor concentration, defects or restrictions on normal occupation can affect the valuer's view.

If the lender value is lower than the price, the LVR is calculated from the accepted value and the cash shortfall can increase. Use the LVR calculator to check the ratio, then use the bank valuation challenge guide if the report contains a factual error or weak comparable evidence.

Review the current body corporate budget and insurance alongside the levy quoted in the listing. In Queensland, the body corporate buyer guidance explains the financial and insurance records to check. For unresolved repairs, use our apartment defects guide.

Once a lender accepts the apartment, compare the rate, fees and features you will use. See Moneysmart's home loan comparison guidance.

An apartment does not automatically require a special high-interest product. The available rate and terms depend on the lender, loan purpose, deposit and full application.

See how lenders mortgage insurance affects the loan.

Client examples are based on real situations. Names and identifying details have been changed.