Apartments are a great option for first home buyers that want to get onto the property ladder, but until very recently there has been a real problem getting a bank that will finance smaller apartments.
We know that apartments are often a more affordable entry point into the housing market as you are not having to buy as much land. In addition, as cities intensify the idea of living in apartments is becoming a more common and popular choices.
Some people will chose the apartment lifestyle because they want the carefree living that is offered, while others will be attracted to apartments due to the lower cost of some. Like all properties there is a huge variance from the smaller and very basic to stunning penthouse apartments.
ANZ Changes Apartment Policy
Previously, ANZ required a 50% deposit for any apartment smaller than 45 square metres. Under the new rules you only need a 20% deposit for freehold, standard apartments 38 square metres or larger.
A standard apartment is generally defined by the banks as having at least one bedroom (not a studio) and being greater than 38 square metres excluding and balconies and garages or parking area.
If you are buying “a non-standard apartment” then you will still require a 50% deposit. Non-standard apartments are those that are less than 38 square metres, studio apartments, leasehold apartments, bachelor/bedsit units, warehouse/office conversions, serviced apartments or student/ university apartments.
This change will certainly help first home buyers.
