Getting a loan for an apartment

Buying an apartment as your first home could be a great alternative to buying a free-standing house.

Apartments can be more affordable, are often more central, and sometimes come with some added perks like a shared gym or pool. But getting a loan for an apartment can be a little different to getting a loan for a standalone house.

Here’s what you need to know.


One of the first questions you’ll be asked when you go to get a loan for an apartment is how many square metres the apartment you are considering is.

This is because a lender will need your intended apartment to be at least a certain size. This is usually around the 40sqm to 50sqm mark.

If you’re considering an apartment above this size, great! There aren’t typically any limitations on how much you can borrow beyond the usual process and assessment on how much you can borrow, which will be the same as a standard home loan.

But if you want to buy an apartment below the lender’s minimum size requirement, they may:

  • Ask for a higher deposit
  • Ask for additional security
  • Not be willing to lend on that apartment at all

If you want to buy an apartment, aiming for above something 50+ sqm for the internal floor size will expand your loan options.


The title that an apartment is purchased under matters. This may be:

  • Freehold unit title (AKA strata title), where the owner owns the apartment outright.
  • Leasehold, where the ‘owner’ has purchased the right to live in the apartment for a long period of time.

Under leasehold, you don’t own any land like you do under freehold. Some lenders may not be willing to provide a loan to buy a leasehold apartment. You should get a clear understanding of which your apartment is before negotiating to purchase.



A minimum of 20% deposit is typical when purchasing a home, but not so for all apartments.

As mentioned before, smaller apartments might need a higher deposit. But regular sized apartments (50+ sqm) may need more than a 20% deposit as well.

This will depend on the lender, where you’re buying, the building you’re buying in, and so on, but some apartments may need a 30% deposit or more.


Home loans for apartments are a little different from home loans for a house, but with the right lender, absolutely achievable.

Start an application for your apartment home loan through Avanti Finance.

This article is solely for information purposes and is not intended to be financial advice. If you need help, please contact Avanti Finance or your financial adviser. Neither Avanti Finance nor any person involved in this article accepts any liability for any loss or damage whatsoever which may directly or indirectly result from any information, representation or omission, whether negligent or otherwise, contained in this publication. References to third-party websites are provided for your convenience only. Avanti Finance accepts no responsibility for the availability or content of such websites.

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