Buying an apartment or unit comes with different home loan considerations compared to purchasing a house, especially in 2026, as lender policies continue to vary by property type. For buyers in high-density areas like North Shore Sydney, factors such as strata arrangements, building size, and valuation risk can directly affect borrowing capacity, deposit requirements, and approval outcomes.

This is where experienced North Shore Sydney brokers, such as Sabea Financial, can help. A specialist mortgage broker can identify lenders that are more favourable to unit purchases, assess how a specific apartment will be viewed by banks, and structure a loan that aligns with both lender policy and your long-term goals.

Below, we explain how home loans for apartments and units work in 2026 and what North Shore Sydney buyers need to know before applying.

Can You Get a Home loan for an Apartment or Unit in Australia?

Yes, you can get a home loan for an apartment or unit in Australia, but lenders assess these properties differently from houses. Banks consider factors such as strata arrangements, building size, location, and valuation risk, which can affect borrowing capacity and deposit requirements. Some apartments may face stricter lending criteria, particularly in high-density developments. 

For buyers in 2026, understanding how lenders assess units early can help avoid delays or reduced loan approvals, especially in markets like North Shore Sydney.

How Do Lenders Assess Apartments and Units for Home Loans?

Australia-wide, lenders assess apartments and units with a stronger focus on property risk compared to houses. This ensures the dwelling meets resale and security requirements set under national lending standards.

In premium locations such as the North Shore Sydney market, these checks are applied even more closely due to higher values and density. Lenders typically assess apartments and units by reviewing:

• The internal size of the unit and functional layout
  
  
• The total number of units in the complex and owner occupier ratio
  
  
• Strata financial health, including sinking fund adequacy
  
  
• Building age, construction quality, and any known defects
  
  
• Exposure to commercial tenancies or short-term letting
  
  
• Comparable sales evidence within North Shore Sydney
  
  

Because assessment policies vary significantly between lenders, engaging a knowledgeable broker is essential to align the right apartment with the right lender and strengthen approval outcomes.

What Types of Apartments Are Commonly Financed?

Lenders tend to favour apartment types that demonstrate stable demand and predictable resale value. In established areas like the North Shore Sydney market, certain unit styles are more commonly approved. Commonly financed apartment types include:

• Standard residential apartments in low to medium-density complexes
  
  
• Older-style brick walk-up units
  
  
• Boutique developments with a small number of dwellings
  
  
• Purpose-built residential units without commercial components
  
  
• Owner-occupier-focused apartment complexes
  
  

Understanding which apartment types align with lender preferences helps buyers plan with confidence and move into the loan selection process more effectively.

What Are the Eligibility Criteria for Apartment Home Loans?

Eligibility for apartment home loans is assessed using both borrower strength and property suitability. Lenders apply consistent national standards, then layer on additional criteria for units and strata-titled properties.

Key eligibility requirements commonly include:

• Stable income and acceptable employment history
  
  
• Satisfactory credit history and manageable existing debts
  
  
• Deposit and LVR requirements typically range from 10 to 20 percent depending on the apartment type
  
  
• Lending restrictions based on unit size, building density, and postcode risk
  
  
• Strata considerations, including financial health, sinking fund balance, and building condition
  
  
• Valuation support based on recent comparable apartment sales

Because these criteria vary significantly between lenders, a broker can help identify the most suitable lending options and structure the application to meet policy requirements efficiently.

How to Apply for a Home Loan as an Apartment or Unit Buyer in North Shore Sydney?

Applying for an apartment or unit home loan follows a structured process, but preparation is critical in a competitive market. In North Shore Sydney, early guidance helps buyers avoid policy mismatches and delays.

Step 1: Assess borrowing capacity

Review income, expenses, liabilities, and credit history to determine a realistic budget. This sets clear expectations before inspecting properties.

Step 2: Engage a mortgage broker

A broker reviews lender policies suited to apartments and North Shore Sydney locations. This ensures the chosen lender aligns with both the buyer and the property type.

Step 3: Obtain loan pre-approval

Pre-approval confirms conditional borrowing limits and strengthens negotiating power. It also reduces the risk of purchasing an unacceptable property.

Step 4: Select the apartment and sign the contract

The broker checks the property against lender policy before exchange. This step helps prevent valuation or strata-related issues later.

Step 5: Submit the formal loan application

Supporting documents are lodged, and the lender orders a valuation. Any conditions are addressed promptly with broker support.

Step 6: Receive formal approval and settle

Once approved, loan documents are issued, and settlement is coordinated. The broker remains involved through to funding and beyond.

Following a clear, broker-supported process helps apartment and unit buyers move from application to settlement with greater confidence and fewer surprises.

How Mortgage Brokers Help North Shore Sydney Apartment and Unit Buyers Secure Home Loan Approval

Securing finance for an apartment or unit often involves more complexity than buyers expect. In North Shore Sydney, lender policy differences can significantly affect approval outcomes. A mortgage broker can help by:

• Matching the apartment type to the most suitable lender policy
  
  
• Comparing a wide panel of lenders, not just one bank
  
  
• Structuring the loan to improve serviceability and approval strength
  
  
• Identifying deposit and LVR options that reduce risk of decline
  
  
• Reviewing strata reports and valuation considerations early
  
  
• Managing lender communication and approval conditions

Working with an experienced North Shore Sydney broker like Sabea Financial gives apartment and unit buyers clarity, confidence, and a stronger pathway to loan approval, making it the smart next step toward securing your property.

FAQs

Can I buy a small apartment with a standard home loan?

Yes, but lenders have minimum size requirements that vary between banks. Smaller units often limit lender choice and may require a higher deposit.

Do apartments attract higher interest rates than houses?

Interest rates are usually the same, but risk-based pricing can apply. The property type and borrower profile influence the final rate offered.

Is strata considered in home loan approval?

Yes, lenders assess strata financials and building condition. Poorly managed strata can impact valuation and approval.

Can first home buyers purchase units on the North Shore?

Yes, many first home buyers choose units for affordability. Eligibility for grants or concessions depends on price caps and occupancy rules.

Are off the plan apartments harder to finance?

They can be, due to valuation risk at completion. Lenders apply stricter policies and may reduce borrowing capacity.

Does rental income help serviceability for unit purchases?

Yes, expected rental income can be included, subject to lender shading. This can improve borrowing power for investors.

Final Thoughts

Buying an apartment or unit on the North Shore Sydney in 2026 requires clarity, preparation, and the right lending strategy from the beginning. Buyers face unique assessment rules, deposit expectations, and lender policies that can directly affect approval outcomes and long-term affordability. 

North Shore Sydney broker Sabea Financial focuses on helping clients secure appropriate home loans with confidence, whether purchasing a first unit or upgrading within the area. To discuss your options and receive tailored advice, call us today at 1300 001 755 to speak with a specialist who understands apartment lending on the North Shore and is ready to support your property goals.



External Resources

• https://www.moneysmart.gov.au/home-loans
• https://www.apra.gov.au
• https://www.abs.gov.au