Lenders assess the security property, not just you as the borrower, and a property type outside a lender’s standard security policy can narrow the field even for an otherwise straightforward applicant. This is a security-appetite question, not a reflection on your own application.
Property types that can change lender appetite
- Small or high-density apartments, floor size and building density can both matter
- Serviced apartments
- Company title (rather than strata or Torrens title)
- Multiple dwellings on one title
- Off-the-plan apartments, see the dedicated off-the-plan guide
- Property under special zoning or unusual security arrangements
Why small apartments in particular
A very small apartment (commonly under roughly 40–50 square metres, though the exact threshold varies by lender) can trigger a lower maximum LVR or be excluded from some lenders’ security policy entirely, it’s viewed as a less liquid, more specialised type of security, independent of the borrower’s own financial strength.
Strata and body corporate matters
Ongoing strata/body corporate fees form part of your genuine ownership costs, and a building’s strata financial position can itself become part of a lender’s or valuer’s assessment for higher-density buildings. Ask for the strata report and recent AGM minutes before committing, not just after your offer is accepted.
What to prepare
- The exact floor size and building density of the apartment you’re considering
- Confirmation of title type, strata, Torrens or company title
- A recent strata report and AGM minutes
Next step: see the Scenario Lens‘s Property tab, then talk with KartikKumar before making an offer on an apartment with unusual characteristics.