High-⁠density apartment home loans

After a pre-approval, some buyers are asked for another $20k or told the bank will not lend in that building. These are the reasons lenders give and what they mean for your loan:

If one tower develops a serious defect or loses value, a lender with many loans there faces several losses at once.

Some lenders limit their lending in each development. Once that limit is reached, they can decline the address even when the borrower qualifies.

An exposure limit does not by itself mean the building is defective or a bad purchase.

The frustrating part is you usually can't tell any of this from the listing. Westpac and St George give brokers access to development registers that can help flag a building and indicate the loan limit that may apply. Other lenders use postcode tools or general limits on lending in a development. I wouldn't assume those tools show exactly how much the bank has already lent in that building.

I can check the published rules and ask the lender to check the exact address. The information available can change, so I don't rely on a register alone for the lender's final answer. With some lenders, we may only get that answer once they've assessed the property.

Check the apartment, building, location and loan separately to find the reason for the decline.

Lenders may use floor or apartment counts, postcode categories, internal property codes or location guides. A normal-sized unit can still face a location restriction.

Flood and bushfire are separate checks. They do not automatically mean every lender will reject the suburb. The concern will usually appear through the valuation, insurability or the lender's property-risk review. If the issue is flood risk, use the flood risk guide before relying on the pre-approval.

If the concern is the apartment's size, layout, title or use rather than the postcode, the apartment mortgage guide explains those checks in more detail.

This hypothetical assumes the lender values the apartment at the $600k purchase price. Mortgage insurance, buying costs and the full loan assessment can change the cash required.

A limit quoted as a "70% maximum" is bigger again. On the same $600k apartment, dropping from an expected 90% loan to 70% means another $120k towards the price before costs.

A larger deposit may solve a maximum loan percentage. It does not solve a lender that has marked the building unacceptable, a unit below its minimum floor area or a development outside its current register.

The examples below group lenders by building rules and by size, postcode or development limits.

Lender guides: Westpac · St George · Commonwealth Bank · NAB · ANZ · Bankwest · ING · Macquarie · AMP · People First Bank

Lender rules checked 2 August 2026. A general starting-point view of the lenders listed above, not a ranking, a recommendation or credit advice. Lending policy changes without notice, and any loan is subject to the lender's own credit assessment and approval of your full application.

Check what the lender means by exposure: its total lending in the development, how many apartments one borrower owns, or a loan cap tied to the postcode or floor area.

These are the details I check before an offer. The lender's position on the building can still change before settlement.

Some property checks can be done before an offer. The lender may still need an address check, valuation or assessment, so ask your solicitor or conveyancer about the finance clause and deadline.

Each stage confirms something different:

Give the lender the full contract and details of any rebate, cashback, rental guarantee or incentive. APRA says developer discounts reduce the sale price rather than count as the buyer's deposit. The headline contract price may also differ from the sustainable resale value. See APRA's residential lending guidance.

For an off-the-plan purchase, ask again near settlement whether the lender accepts the completed building, what valuation is still required and whether your pre-approval is current. An early postcode check does not reserve lending capacity in the development.

Eligible buyers can use the Australian Government 5% Deposit Scheme without paying lenders mortgage insurance. The participating lender still needs to accept the apartment.

Check the buyer's scheme eligibility alongside the apartment's floor area, high-density classification, postcode, development exposure, valuation and use. Both the price and the lender's valuation must be at or below the scheme's price cap for the area.

First, get the reason in writing, or ask me to find out exactly why the property was declined. "We will not lend in this building" is not specific enough.

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