I have come across some dreadful stories in relations to Inner City Units and finance in the preceding few months, and so I decided that the thing deserves attention.
Inner city units are deemed to be high risk securities by mortgage insurers and lenders, the higher the danger the higher the level of trouble to finance.
Every lender and mortgage insurer has their own policies in regards to the LVR (Loan to Value Ratio), unit size, the zip in which the place is located, the top of the construction and the amount of units in the building that will hold the place as an acceptable security.
Depending on the lender the minimum square meters vary from 30-50sqm. Again depending on the lender the minimum size might or might not include external areas (such as balconies, storage space and car park). The position is in most cases determined by postcodes, as a ruler of thumb the closes the postcode is to the CBD of a major city, the higher the risk grade. Once again this can vary from lender to lender. It pays off to use the services of a knowledgeable mortgage broker that knows their panel lenders policies with respects to inner city units.
The serious tidings is that if you design your strategy accordingly financing an interior city unit can be a smooth experience. When mapping out your strategy you want to ask yourself: What type of property will I be looking for? Leave the place be in a questionable postcode? What is the LVR that will fit my strategy?
Sydney Mortgage Broker can assist you do these questions. The reward of using a mortgage broker is that we are the experts at solving these problems; we get the cognition and experience to draw you to the right mortgage product that will fit your borrowing needs. I have admittance to lenders that will finance inner city units (with conditions). I strongly indicate that you arrange for finance pre-approval before you go unit hunting to avoid headaches down the road.
Preparation is key, if you are well disposed to assume the chance you hope you will see that accomplishing your goals is well inside your reach.
Get in contact with me so we can speak about your scheme and prepare a plan.
"To be prepared is half the victory" -Miguel de Cervantes-
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