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Understanding Eligibility for Property Loans

Are you considering purchasing or refinancing a property? Navigating the eligibility criteria for property loans can sometimes feel like deciphering a complex puzzle. However, understanding the key points can simplify the process and help you make informed decisions. Let’s break down the essential eligibility requirements step by step:

Property Size

When it comes to property eligibility, size matters. Most lenders require the property to be over 50 square meters in size. However, it’s essential to note that this requirement typically excludes properties that are still under construction or off-plan.


Location plays a crucial role in loan eligibility. Generally, lenders prefer properties located in capital cities or major regional centers. These locations often offer more stable property markets, which can lower the risk for lenders.

Loan Type

Loan types vary in complexity, and it’s essential to choose one that fits your needs. For simplicity, consider opting for loans with straightforward features. This means steering clear of split loans or guarantor arrangements. Additionally, for loans exceeding $2 million, cash-out or equity releases may not be available.


Saving for a deposit is a significant milestone in the property buying journey. Most lenders require a minimum deposit, typically set at 10% of the property’s purchase price. However, for loans exceeding $2 million, a higher deposit of 25% may be necessary. Building a solid deposit demonstrates your financial stability and reduces the lender’s risk.

Loan Amount

Determining the loan amount is a critical step in the borrowing process. It’s essential to strike a balance between borrowing enough to meet your needs without overextending yourself financially. Typically, lenders offer loans ranging from $50,000 to $3 million, providing flexibility to suit various property purchases.


Are you eligible to apply for a property loan in Australia? Lenders typically require borrowers to be Australian citizens or permanent residents residing in the country. This ensures compliance with local regulations and helps lenders assess the borrower’s stability.


Stable employment is a key factor in loan eligibility. Whether you’re a PAYG employee or self-employed, lenders typically require a minimum employment tenure. For PAYG employees, a minimum tenure of six months is often required, while self-employed individuals may need a minimum of one year of consistent income.

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