Trying buy a unit in St Kilda but finding it difficult to obtain finance as it's 41 square metres. Is 50 squares always the minimum - any advice of which banks might help?

Hi Michael, great question. There are a few variables to consider first of all. Have you been told that the lenders won't accept the unit because of its size or because of its location. One of the dangers that people face when buying on areas such as St Kilda is what is commonly referred to as high density. A lot of your lenders do have restrictions on the when level they will lend to in this circumstance. Having said that generally the majors will accept smaller units.

I hope this helps a little & happy to discuss offline.

Michael. Hi. I do have lenders that will accept units as small as 40 sq m. But this must be the living space, not balcony or car space.
If you can send me the property address, I have access to some lenders security registers that will allow me to check the specific complex for suitability.
Hope to hear from you soon
Ken Olds
1300 ASK KEN
Finance@AskKen.com.au

There are some lenders that will finance units below 50 squares and possibly as low as 40 squares. Calculations are usually using liveable space. I'd be happy to assist you to find the right lender if you require help.

John Maxwell
0434544225
john@cocalexconsulting.com.au

This is a property specific question and the review of the contract and floor plan is important. Another consideration is the amount you wish to borrow against the property.
There are lenders who I believe would consider accepting this property up tp 90% assuming affordability is met by the bank policy.
Happy to get more details from you and get to work in the research of your options.
regards
Chris

Hi Michael,
Something that hasn't been addressed here is what is your motivation for buying a 41m2 property?
Banks and other lenders are concerned about the risk to valuation and their ability to sell the property should you default on the loan.
There are lenders who lend for 40m2 provided it is all internal living space.
I would recommend that you speak with 2 or 3 financial advisors before purchasing any property to ensure that any investment suits your current and medium term goals
Best regards
Scott

It's small and banks don't like it for a reason. If it's an older block and only a small number of units you might be ok. If it's a high rise, I wouldn't be buying it regardless