The 50sqm Rule & Resort Lending
Managing maximum LVR cuts on micro-apartments and resort real estate.
Core Assessment Analysis
Mainstream banks enforce a strict 50sqm rule for apartments. If the internal floor area (excluding balconies and car spaces) is under 50sqm, they will cap your LVR at 70% or 80%, requiring a much larger deposit, or decline the security completely. Apartments under 40sqm are blacklisted by most major lenders. Furthermore, properties in resort complexes with commercial management agreements are treated as commercial assets.
Why Underwriters Focus Here
Micro-apartments and resort properties face volatile valuations and limited resale demand, increasing bank default losses.
Key Outcome Assessment Factors
Title deed square meterage, local zoning classification, and postcode registers.
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Properties under 50sqm require prior desktop valuation checks.
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