What Properties Qualify for a 2% Deposit Loan

Acceptable Property Types

Properties that qualify for a 2% deposit loan include houses, apartments, villas, and townhouses on acceptable postcodes, zoned residential, with at least 47sqm of living area. Apartments built after 2015 must be 6 floors or fewer. No vacant land or construction loans.

The following property types are accepted as security for a 2% deposit home loan, provided they meet all size, zoning, and location criteria:

• Houses: freestanding houses on acceptable postcodes. Maximum land size of 15 acres (approximately 6 hectares).
• Apartments: subject to floor count and strata rules detailed below.
• Villas: accepted on all covered postcodes.
• Townhouses: accepted on all covered postcodes.
• Duplexes: accepted. In outer metro postcodes, freestanding homes and duplexes are the only accepted types.

Size and Zoning Requirements

• Minimum living area: 47 square metres, excluding balconies and car spaces. This applies to all property types.
• Maximum land size: 15 acres (about 6 hectares).
• Zoning: the property must be zoned residential or mixed use. Properties zoned commercial, industrial, or rural are not accepted.
• Maximum property value: $3.5 million.

Title Types

The following title types are accepted:

• Freehold or Torrens title
• Strata title
• ACT Crown Leasehold: accepted where the lease term extends at least 10 years beyond the loan term
• Community title: accepted where the development is fully completed

Apartment Rules

Apartments have additional rules based on when the building was constructed and the loan purpose:

• Built 2015 or later: the building must be six floors or fewer.
• Built 2014 or earlier: buildings of seven floors or higher are acceptable only where the loan is for owner occupation (not investment).
• Investment loans: the property must be in a strata plan of 30 dwellings or fewer.
• High density postcodes: the strata plan must be 30 units or fewer, and the purpose must be owner occupied up to 98% LVR. Exceptions are required for investment purposes in these postcodes.

Metro, Outer Metro, and High Density Postcodes

Postcode coverage spans NSW, VIC, QLD, SA, WA, TAS, and the ACT, each divided into Metro and Outer Metro categories. The distinction affects which property types are accepted:

• Metro postcodes: all acceptable property types (houses, apartments, villas, townhouses, duplexes) are eligible, subject to the rules above.
• Outer metro postcodes: only freestanding homes and duplexes are accepted.
• High density postcodes: a defined subset with additional strata and purpose restrictions as noted above.

The full postcode list is maintained as an operational data asset. Rather than publishing the entire list (which can change), we offer a postcode check service. Contact us to check whether your target postcode is covered.

Off-the-Plan Purchases

Off-the-plan purchases are accepted under the 2% deposit home loan, with specific conditions:

• The application must be submitted for approval within 3 months of the expected settlement date.
• The valuation must confirm 100% completion of the dwelling and common areas.
• Construction and title registration must occur within the 90 days before settlement.

These requirements ensure the property is completed and ready for occupation or tenancy at settlement. Off-the-plan purchases that do not meet these conditions cannot proceed under this product.

Valuation Rules

A valuation is ordered after an executed Contract of Sale is received. The valuation must confirm the property meets all acceptable security requirements, including zoning, condition, and risk ratings. The maximum valuation age at settlement is three months. If settlement is delayed beyond three months from the valuation date, a fresh valuation may be required.

What Properties Are Not Accepted?

The following property types and situations are not accepted as security:

• Apartments of seven or more floors completed after 2015
• Vacant land
• Leasehold properties (serviced apartments, defence housing, NRAS)
• Display homes
• Term deposits (as security)
• Rural property
• Commercial or industrial property
• Student accommodation
• Multiple dwelling or multiple occupancy arrangements
• Favourable purchases (where the price is below market value)
• Properties in bushfire risk zones
• Properties not zoned residential or mixed use
• Properties with elevated risk ratings in the valuation
• Properties not readily marketable
• Properties in need of major repair or poorly maintained
• Properties with significant environmental hazards (flood probability greater than 1 in 100 years, within 50 metres of high voltage power lines, or within a known site contamination area)

Back to 2% Deposit Home Loans hub. See also: borrower eligibility, income requirements, owner occupier loans, investment property loans.