What is the minimum and maximum home or block size lenders accept for a home loan?
Not all properties are treated equally by lenders. When applying for a home loan in Australia, the size of a property can affect whether a lender is willing to approve your mortgage.
- Property size matters to lenders due to resale and valuation risks.
- Most lenders prefer apartments of 40-50 sqm or more.
- Many mainstream lenders cap residential land size at around 10-50 hectares.
- Rules vary widely by lenders; a property rejected by one bank may still be financeable elsewhere.
If you've been to an auction and wondered why that trendy inner-city apartment struggled to make reserve, it may be because of its ineligibility for a normal home loan due to the small floor plan, limiting buyer demand.
Similarly, if you've wondered why a huge block is going for relatively good value, it could be because a lender doesn't want to lend in rural areas or has a cap on the land size.
Savings.com.au reached out to a range of major banks, challengers, customer-owned banks, and non-bank lenders to find out where they stand on floor plans and property sizes.
Why property size matters to lenders
Banks and lenders assess property size because it directly affects resale value and market demand.
From a lender's perspective, very small properties can be harder to sell if the borrower defaults, while very large holdings can be difficult to value and liquidate. Additionally, unusual or non-standard dwellings may attract a smaller buyer pool.
To manage this risk, many lenders apply minimum floor plan requirements and maximum land size limits as part of their credit policies.
Is there a minimum apartment size for a home loan?
There is no single legal minimum size for apartments in Australia. However, most lenders apply internal guidelines that influence whether they'll lend - and on what terms.
These thresholds vary by lender and may differ in whether balconies or car spaces are included. Borrowers should always check how a lender defines "living area".
As of 2025, typical lender preferences look like this:
Apartment size* | Typical lending outcome |
50 sqm or more | Widely accepted by most lenders |
40-49 sqm | Accepted by many lenders, sometimes with conditions |
30-39 sqm | Fewer lenders available; higher deposit often required |
Under 30 sqm | Specialist or non-bank lenders only |
*These figures usually refer to internal living area only, excluding balconies, parking spaces, and storage cages.
What counts as floor plan size?
Lenders typically focus on internal, enclosed living space, excluding balconies, courtyards, garages, and car spaces. They may also refer to strata plans or valuation reports.
- Why does it matter? A "50 square metre apartment" advertised by a developer may not meet a lender's definition once balconies are removed.
Minimum floor plan size for apartments and units
Lenders typically have their own set of requirements regarding the minimum square footage - or 'metreage' - of the floor plan. They may or may not include things like balconies and garage spaces in the equation. This could potentially rule out some smaller apartments, so double-check before you buy or bid.
In addition, there may be some additional loan-to-value (LVR) requirements if you have a small, inner-city apartment in mind. There may also be other caveats to lenders' 'minimums'.
Note: Westpac and Commonwealth Bank declined to participate in this article.
Lender | Minimum Size (sqm) |
ANZ | No defined minimum* |
NAB | 50 |
AMP | 40 |
Athena | 50 |
Bank of Queensland | 40 |
Bendigo & Adelaide Bank | 50 |
Citi | 40 |
Greater Bank | 40 |
Great Southern Bank | 50 |
homeloans.com.au | 40 |
HSBC | 45 |
loans.com.au | 40 |
Macquarie | 50 |
Newcastle Permanent | 50 |
Suncorp | 50 |
Teachers Mutual Bank | 35 |
Virgin Money | 50 |
Yard | 35 |
*Other criteria may apply
ANZ
"ANZ uses a number of policies and criteria when determining eligibility for a loan. While we will require larger deposits for some smaller apartments, there is no absolute restriction on the minimum size of the dwelling," a spokesperson told Savings.com.au.
NAB
NAB confirmed the minimum floor plan requirement is 50 sqm, inclusive of balcony and car park.
AMP Bank
"AMP Bank's minimum floor plan requirement for units/apartments is one bedroom; 40 sqm in metro areas, and 45 sqm otherwise (excluding balconies and car accommodation)," an AMP spokesperson told Savings.com.au.
Athena
Online lender Athena confirmed with Savings.com.au that the minimum floor plan size is 50 sqm, excluding garage and balcony.
"For properties that don't fit the above, we offer Athena Select. It's our broker service where we find a lender that suits the customer's needs if they aren't eligible for an Athena home loan," an Athena spokesperson said.
"Although it's something we offer, we don't advertise this."
Bank of Queensland
A spokesperson informed Savings.com.au that the minimum floor plan size is 40 sqm, subject to "extra credit commitments", such as the location of the property, and individual borrower specifications.
They also urged potential borrowers to reach out directly, as applications are done on a case-by-case basis.
Bendigo and Adelaide Bank
A spokesperson for the brand confirmed the minimum is 50 sqm for a one-bedroom apartment, and 60 sqm for a two-bedroom.
Citi
A Citi spokesperson told Savings.com.au the minimum unit size is 40 sqm of living space, excluding garage and balcony.
"Accordingly, we have limitations on the types of loans that we process so we can focus on lending in specific areas, for example, for complex loans for high net worth individuals."
Greater Bank
"Dwelling is to be >40 sqm in size (excluding balconies and parking) and have at least one bedroom (separate from living areas), lounge/dining, kitchen/laundry, bathroom or bathroom/laundry," a Greater Bank spokesperson said.
Great Southern Bank
A spokesperson for Great Southern Bank said the minimum is generally 50 sqm, but "do go smaller on a case-by-case basis".
homeloans.com.au
"40 sqm minimum floor size for apartment under 'Flex' (our specialist loan). 50 sqm minimum floor size under 'Low Rate Home Loan' (our prime loan product)," a spokesperson told Savings.com.au.
HSBC
A HSBC spokesperson confirmed the minimum living area must be 45 sqm, excluding balconies and car spaces.
loans.com.au
"The minimum living area for a unit (excluding balcony/outdoor, car space, etc.) is 40 sqm in a capital city or metro location, and 50 sqm if not in a capital city or metro location," a loans.com.au spokesperson told Savings.com.au.
Macquarie
A spokesperson for Macquarie told Savings.com.au the minimum floor plan size is 50 sqm; however, some additional credit criteria may apply, such as a lower loan-to-value ratio, i.e. a bigger deposit.
Newcastle Permanent
A Newcastle Permanent spokesperson confirmed the lender accepts units "greater than 50 sqm". However, additional LVR restrictions may apply if the unit is located in a high-density apartment complex.
Suncorp
Suncorp confirmed the minimum floor plan size for an apartment is 50 sqm.
Teachers Mutual Bank
"The size of the dwelling must be a minimum of 35 sqm in floor space, excluding balconies and car space for studio or one-bedroom units, and a minimum of 60 sqm for two- or more bedroom units", a spokesperson told Savings.com.au.
This also applies to Teachers Mutual subsidiaries, including Firefighters Mutual Bank, Health Professionals Bank, and UniBank.
Virgin Money
Bank of Queensland, which underwrites Virgin Money home loans, confirmed that the minimum apartment floor plan size is 50 sqm.
Yard
"Yard can accept small units and studios as eligible property. Minimum floor requirements are 35 sqm internal living area for strata title properties," Yard CEO Toni Mladenova told Savings.com.au.
"If the property is outside high-demand capital city areas, then the minimum internal area requirement is 40 sqm."
Do lenders have maximum land size limits?
By the same token, mainstream lenders typically have a maximum land size for residential lending (as opposed to farming or commercial use), but it usually numbers in the many hectares.
While not a concern for most suburban or even semi-rural areas, it could be an issue if you want a larger slice of the pie.
If you're considering building a home, learn how to choose the right block of land for your property.
Maximum land size for a home loan
Once again, certain LVR and other restrictions may apply.
Note: Westpac and Commonwealth Bank declined to participate in this article.
Lender | Maximum Land Size (hectares) |
ANZ | 50 |
NAB | 10 |
AMP | 40 |
Athena | 6 |
Bank of Queensland | 40 |
Bendigo & Adelaide Bank | 10 |
Citi | 4 |
Greater Bank | 70 |
Great Southern Bank | No defined maximum |
homeloans.com.au | 10 |
HSBC | 10 |
loans.com.au | 10 |
Macquarie | 10 |
Newcastle Permanent | 50 |
Suncorp | 10 |
Teachers Mutual Bank | 40 |
Virgin Money | 40 |
Yard | 40 |
ANZ
"In terms of large rural residential properties, we will lend up to 50 hectares, although we will require a larger deposit," a spokesperson said.
NAB
NAB confirmed the maximum is 10 hectares or 25 acres. However, for vacant land (no residence or dwelling on the property), the maximum is 2.2 hectares or 5 acres.
AMP Bank
"The maximum land area is up to 40 hectares (100 acres) with a dwelling, whether zoned as residential, rural residential or rural. For vacant land, the maximum area is 2 hectares (5 acres)," AMP Bank's spokesperson said.
Athena
Athena confirmed the maximum land size allowable is 6 hectares.
Bank of Queensland
A BoQ spokesperson confirmed the maximum land size allowable is 40 hectares. This also applies to Virgin Money home loans, which BoQ underwrites.
Bendigo and Adelaide Bank
The joint outfit confirmed the maximum land size allowable is 10 hectares.
Citi
Citi confirmed the maximum size allowable is 4 hectares. Anything over 2 hectares must be owner-occupied and is subject to a lower LVR, i.e. a bigger deposit.
Greater Bank
Greater Bank confirmed the maximum land size with a dwelling is up to 70 hectares, whereas vacant land is up to 50 hectares.
Great Southern Bank
Great Southern Bank confirmed there is no maximum for land size.
homeloans.com.au
A spokesperson for the company told Savings.com.au the maximum land size is 10 hectares.
HSBC
HSBC confirmed the maximum allowable land size is up to 10 hectares.
loans.com.au
"[For] land with a dwelling on it, the land size is 10 hectares. We don't accept vacant land as security unless there is a building contract and we are doing a construction loan," a spokesperson said.
Macquarie
Macquarie confirmed it can lend to properties larger than 10 hectares. However, some additional credit criteria may apply, such as a lower loan-to-value ratio, i.e. a bigger deposit.
Newcastle Permanent
Newcastle Permanent's maximum land size it will lend for is 50 hectares. However, additional LVR restrictions may apply for properties greater than 10 hectares.
Suncorp
Suncorp confirmed vacant land is up to 10 hectares, while the maximum for residential properties is anywhere between 10 and 50 hectares.
Teachers Mutual Bank
"The size of the land, be it vacant land or on which the dwelling is located, must be no more than 40 hectares," a spokesperson said.
This also applies to Teachers Mutual subsidiaries, including Firefighters Mutual Bank, Health Professionals Bank, and UniBank.
Yard
"We can do 80% LVR for properties up to 10 hectares. We can then consider properties between 10 to 40 hectares, but our max LVR changes - for example, we can consider a 40-hectare property up to a max 60% LVR," Ms Mladenova said.
"The property needs to be in a rural residential area and be connected to key services - electricity, water, sewage and have access to a sealed road."
What buyers should watch out for
- Policies vary by lender (and change often) - There's no universal rulebook. A property rejected by one lender may be acceptable to another.
- Deposit size matters - Smaller apartments and larger land parcels typically require bigger deposits.
- Valuation risk - Even if a lender is willing to assess your application, a conservative valuation can still derail approval.
- Future resale matters - If a lender considers a property hard to sell, it may impact approval, borrowing capacity, and refinancing options later on.
Once you know your property meets lender size limits, compare some of the lowest interest rate home loans available for owner-occupiers in the table below.
Lender Home Loan Interest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Extra Repayments Split Loan Option Tags Features Link Compare Promoted Product Disclosure
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