A specialised mortgage lender has changed its policy to cater for demand for small apartments.
Effective October 22, Australian Financial will offer fully documented loans for serviced, resort and hotel style apartments.
The new policy will also apply to ‘university and student style accommodation’, which are apartments of less than 50 square metres.
Alicia Carter, national sales manager at Australian Financial told The Adviser the review, and subsequent change, of policy was prompted by high demand for this type of finance.
“We get approximately five enquiries per week for these types of loans.
“We previously were unable to take these properties as collateral but the change in policy now allows us to service more customers,” she said.
According to Ms Carter, Australian Financial operates in the specialised mortgage space and is committed to providing finance to customers in unique situations.
Ms Carter said the loans will enable many people to enter the housing market by purchasing affordable university/student style apartments,
The loans are limited to an 80 per cent LVR or 60 per cent for properties with a management or leaseback agreement.