Home Loans for apartments?

[newbieinvestor]

Hi, I'm asking this on behalf of my friend. Perhaps someone can help him

He is looking into buying his first property (a studio in Auckland CBD for roughly $140k to $150k). 35sqm. He only have 5% deposit. Is he able to get 95% home loan on this?

Forgot to mention his annual income is $49k

[Tucker]

Not 100% sure but I don't know if he will be able to get a 95% mortgage on an apartment under 50 - 60sqm with a main stream lender. Most only like to lend on larger apartments (>50sqm) or require a larger deposit (up to 50%) on smaller ones.

Others may be able to help more with who may if any.

[Monkeyboy]

Not a Chance anywhere I would say. For an apartment under 40m2 you need at least 30-40%.

[Monid]

Is he buying it for himself to live in or as an investor? And Monkeyboy and others more knowledgeable than I on this sort of question would this make a difference on shoebox apartments?

Cheers
David

[Monkeyboy]

No David, with these shoeboxes the lenders just don't want to deal with them. Even the 2nd tier lenders can't touch them as the insurers won't touch them. So it really doesn't matter if it's for themselves or rental. That said if the person borrowing the money was in an exceptional position they may raise the LVR to 80% max would be my thoughts.

[newbieinvestor]

He wants to live in it.

So what's the minimum size to get around 95% home loan on apartments?

[newbieinvestor]

I would say from what I know he is in good financial position (debt free, no student loan or other loan) and good job/income for a 22 yrs old.

[Josko]

He wants to live in it.

So what's the minimum size to get around 95% home loan on apartments?

You need 50m2 and above.

[newbieinvestor]

Friend have found apartment he likes, around 60sqm, 1 carpark, listed price $299k. Any good mortgage broker around could help with 95% mortgage on this deal?