You are here: Home Tools FAQ What is the LVR for a standard residential apartment?

What is the LVR for a standard residential apartment?

Typically, the floor area will significantly influence the Loan to Value Ratio (LVR).

It is important to understand the distinction of a 'standard' residential apartment versus a serviced residential apartment.

The defining criteria for standard residential apartments (i.e. non-serviced apartments) include the following.

  • The apartment must be for residential occupation and private housing, whether owner occupied or tenanted.
  • It must not subject to any long term lease to a management company.
  • It should not be considered to be a going concern for tax purposes and its price would not include GST.

 

Maximum LVR for standard residential apartments

Lending criteria for apartments varies widely.  Typically, the floor area will significantly influence the Loan to Value Ratio (LVR)

Some lenders will not accept the mortgage security of apartments that are less than 65 square meters.  Others are more lenient. 

Guidelines
  • For apartments with a floor area, excluding decks, of at least 50 square meters the LVR could be up to 80%. 
  • Smaller apartments may attract a lower LVR.  However, if you are able to offer other securities a higher LVR may be possible.

 

To be sure, contact us with some details about the apartment (address, floor area, and rateable value) and we can give you a ruling on the possible maximum LVR.