June 13, 2017
Studio / One-Bedroom Apartment <40sqm
First home buyer and investors chasing high rental yield often find studio apartment / one-bedroom attractive. Be forewarned that most lenders will not lend for apartments with <40sqm of living space (living area excluding carpark and balcony).
Purchasers would often have obtained a pre-approval, leading to a false sense of security. Pre-approval without exception is subject to a property being deemed acceptable to the lender.
Provided there is a kitchen and bathroom, the Commonwealth Bank covers a niche where it can lend up to 80% for a studio apartment regardless of size.