14 May 2026 Home Loans for Apartments and Units in South East Melbourne, The 2026 Guide
South East Melbourne’s apartment and unit market offers genuine opportunities for buyers who understand how lenders view strata properties. Whether you’re a first home buyer targeting a St Kilda unit under the $600,000 stamp duty exemption, an investor comparing yields between South Yarra and Windsor, or an upgrader moving from a house to a premium apartment, unit lending has distinct advantages and considerations that most buyers don’t know about before they start.
Unit purchases in South East Melbourne sit in a sweet spot for several government schemes. The First Home Guarantee’s $950,000 price cap covers most apartments in the catchment, the $600,000 stamp duty exemption applies to units in Windsor – Prahran and St Kilda, and lenders often assess units more favourably than equivalent house purchases for serviceability.
EverLend helps apartment and unit buyers across South East Melbourne compare loan options across 60+ lenders, completely free of charge.
Here’s what you need to know about apartment and unit lending before you make an offer.
Key takeaways
- Unit medians in several inner suburbs sit below the $600,000 stamp duty exemption threshold.
- The First Home Guarantee covers most South East Melbourne apartments up to $950,000 with a 5% deposit.
- Lender policies on building age, strata levies and unit size vary widely across the market.
What should apartment buyers look for in a lender?
The right lender for apartment purchases understands strata properties, offers competitive rates for units, and won’t apply unnecessary restrictions on building age or apartment size. Many mainstream lenders have specific unit lending policies that can affect your borrowing capacity, interest rate, and deposit requirements, and these policies vary significantly across the market.
How do lenders assess apartments differently to houses?
Lenders apply different assessment criteria to units based on the building type, strata management, and location. Most favour newer buildings with professional management and strong sinking funds. The building’s age, total number of units, and any commercial tenancies can affect both approval chances and rates offered.
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What government schemes can apartment buyers use in South East Melbourne?
Schemes available to apartment buyers:
- ›First Home Guarantee: buy with a 5% deposit and no LMI, up to $950,000 in South East Melbourne, covering most apartments and premium units in the catchment.
- ›Victorian First Home Owner Grant: $10,000 for new apartments and units priced at $750,000 or less, applying to off-the-plan purchases in the inner suburbs.
- ›Victorian stamp duty exemption: $0 stamp duty on properties up to $600,000, covering units in St Kilda (median $490,000), Windsor ($536,375), South Yarra ($547,500), and several other inner suburbs.
- ›Victorian off-the-plan concession: excludes post-contract construction costs from the dutiable value for all buyers, which can bring an off-the-plan unit purchase back under the $600,000 stamp duty threshold even where the contract price exceeds it. Applies to contracts entered into before 21 April 2027 (subject to legislation, confirm with the SRO).
- ›Family Home Guarantee: 2% deposit option for eligible single parents up to $950,000, available for both new and established apartments.
Source: State Revenue Office Victoria / Housing Australia
How do mortgage brokers help apartment buyers get approval in South East Melbourne?
Step 1: Talk to us
Get in touch and we’ll assess your deposit, income, and the type of apartment you’re targeting to identify which lenders offer the strongest terms for your situation.
Step 2: Review the building and strata details
We examine the building’s age, strata management, sinking fund balance, and any commercial tenancies to match you with lenders who view these factors most favourably.
Step 3: Compare loan options across our panel
We compare rates, features, and approval criteria across 60+ lenders to find the ones that give apartment buyers in South East Melbourne the strongest result.
Step 4: Handle the application and approval process
We coordinate with your solicitor, the selling agent, and the lender to ensure building inspections, strata reports, and loan documentation align for a smooth settlement.
Step 5: Manage any building or strata concerns
If the lender raises questions about building compliance, insurance, or strata management, we work with your legal team to address these quickly.
Step 6: Coordinate settlement and ongoing support
We stay involved through settlement and provide ongoing rate monitoring and refinancing advice as your apartment investment or home appreciates.
What mistakes do apartment buyers commonly make in South East Melbourne?
The biggest error is assuming all lenders view apartments the same way. Some major banks have strict policies on building age, others won’t lend on certain apartment types, and specialist lenders often offer better terms for units than the big four. Walking into your own bank first without comparing across the market can cost you thousands in higher rates or LMI premiums you could have avoided.
The second mistake is not understanding how strata levies affect your borrowing capacity. Lenders include quarterly strata fees in their serviceability assessment, so high-levy buildings reduce how much you can borrow. Knowing which lenders apply the most favourable treatment to strata costs can make the difference between approval and rejection on borderline applications.
What first home buyer advantages apply to South East Melbourne apartments?
Apartments in South East Melbourne offer first home buyers a unique combination of government scheme benefits that don’t stack as well for houses in the same areas. The $600,000 stamp duty exemption covers units in several inner suburbs, while the First Home Guarantee’s $950,000 cap accommodates most apartment purchases across the catchment.
Advantages stacking for first home buyers in this catchment:
- ›Stamp duty savings: units in St Kilda ($490,000 median), Windsor ($536,375), South Yarra ($547,500), and Prahran qualify for the full stamp duty exemption, saving $20,000 to $30,000 compared to a house purchase in the same area.
- ›Deposit flexibility: the First Home Guarantee covers most South East Melbourne apartments with a 5% deposit and no LMI, while premium units in Toorak (median approximately $948,000) sit right at the $950,000 cap.
- ›Off-the-plan advantages: the Victorian off-the-plan concession can bring a new unit purchase back under the stamp duty threshold by excluding post-contract construction costs from the dutiable value.
- ›FHOG eligibility: new apartments at $750,000 or less qualify for the $10,000 First Home Owner Grant, confirmed continuing in the 2026-27 Victorian Budget, and applying to off-the-plan purchases across several South East Melbourne locations.
$0 stamp duty
First home buyers purchasing a unit under $600,000 in St Kilda, Windsor or South Yarra pay zero stamp duty, saving $20,000 to $30,000 compared to a house in the same suburb.
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Like to know which banks & lenders work best for apartment purchases? Know where you really stand and what’s possible, so you can plan with total confidence. 5.0 on GoogleLocal expertsFree service
Prefer to talk now? Call 03 7036 3356 |
Frequently Asked Questions
Do apartments get the same interest rates as houses?
Usually yes, but some lenders offer slightly higher rates for apartments or apply stricter LVR limits. The difference is typically 0.10% to 0.25% p.a. and varies by lender, which is why comparison across multiple lenders is valuable.
What building age is too old for lenders to approve an apartment loan?
Most lenders prefer buildings under 40 years old, though some specialist lenders accept older buildings with good maintenance records. Buildings over 50 years may face additional scrutiny or deposit requirements from mainstream lenders.
How do strata levies affect my borrowing capacity for an apartment purchase?
Lenders include quarterly strata fees as an ongoing expense when calculating your borrowing capacity. High levies can reduce what you qualify for, so knowing which lenders apply the most favourable strata assessment can make a meaningful difference.
Can I use the First Home Guarantee for an apartment in South East Melbourne?
Yes. The First Home Guarantee covers apartments and units up to $950,000 in South East Melbourne, which includes most properties in the catchment. You can buy with a 5% deposit and no LMI through this scheme.
What happens if there are building defects on an apartment I want to buy?
Lenders will typically require defects to be rectified before settlement, or may decline the application entirely. Your solicitor’s building and pest inspection, plus a strata report review, help identify these issues early in the process.
Should I use a mortgage broker or go to my bank for an apartment purchase?
A mortgage broker, every time. Apartment lending policies vary significantly between lenders. Some banks won’t lend on buildings over 30 years old, others have strict unit size requirements, and specialist lenders often offer better terms than the major banks for unit purchases. Comparing across a panel of 60+ lenders is the only way to know which one suits your specific building and purchase price.
Are there apartments that lenders won’t finance in South East Melbourne?
Most lenders avoid studio apartments under 40 square metres, buildings with significant commercial tenancies, or developments with unresolved building issues. Some also have location restrictions or won’t lend in certain postcodes, which is where lender comparison becomes essential.
Your Next Steps
Getting your apartment loan right means understanding which lenders view units most favourably for your specific building type and purchase price. The right lender can mean better rates, lower deposit requirements, and faster approval for strata properties in South East Melbourne.
The right lender for your apartment purchase depends on your situation, and that’s a conversation worth having. Talk to the EverLend team or call 03 7036 3356, and we’ll compare your options across 60+ lenders at no cost to you.
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External Resources
EverLend · St Kilda and South East Melbourne · General information only – this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions. · Last updated 16 July 2026