Townhouse Mortgage Australia 2026 — What Lenders Look For

General information only — not financial advice. This content is intended as educational guidance. Consult a qualified financial adviser, mortgage broker, or legal professional before making financial decisions. See our full disclaimer.

Townhouses in small complexes are treated as standard residential property by most lenders with LVRs up to 95%. Strata/community title complexes and floor area under 50m² may attract LVR restrictions.

Frequently Asked Questions

Can I get a 5% deposit loan for a townhouse?

Yes — if the townhouse meets the lender's minimum size requirement (usually 50m²+) and is not in a high-density complex. First home buyers can use the First Home Guarantee scheme (5% deposit, no LMI).

Are body corporate fees included in my mortgage repayments?

No — body corporate fees are paid separately. However, lenders include them as a living expense when assessing your ability to service the loan, which slightly reduces your borrowing power.

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