Proven tips to secure a unit loan as an IT Project Manager

Why Unit Purchases Require Different Loan Structures

Lenders assess unit purchases differently to house purchases because of body corporate involvement, smaller land value, and higher density.

Unit valuations depend heavily on comparable sales within the same building or complex, which means your property's value can shift when neighbours sell below market expectations. Lenders typically cap loan to value ratios at 90% for units in buildings with more than six storeys, and they'll often require detailed body corporate financials before approving the loan. If the body corporate has less than 10% of levies in a sinking fund, or if commercial tenancies occupy more than 50% of the building, some lenders will decline the application outright regardless of your deposit size.

As an IT project manager working with milestone-based bonuses or contract extensions, your income structure adds another layer. Lenders who accept 100% of your base salary might only recognise 80% of your short-term incentive payments when calculating borrowing capacity, which directly impacts the loan amount you can access for a unit where the purchase price sits at or above the suburb median.

How Loan to Value Ratios Shift for High-Density Buildings

Most lenders will approve up to 95% loan to value for a unit in a building with fewer than four storeys and no commercial use. Once the building exceeds six storeys or includes ground-floor retail, that threshold drops to 90%, and in some cases 80% if the developer still holds unsold stock.

Consider a project manager purchasing a two-bedroom unit in a 12-storey building near a metro station. The unit is priced at the current median for the suburb, but the lender's valuation comes back 3% lower because two similar units in the same building sold within the past three months at reduced prices. The buyer had planned for a 10% deposit, but the valuation gap and the lender's 90% cap for high-rise buildings means they now need to cover the shortfall or renegotiate the purchase price. If they proceed, they'll also trigger Lenders Mortgage Insurance at a higher premium because the LVR sits above 80%, even though their original deposit was sufficient for the agreed purchase price.

This scenario happens regularly with off-the-plan settlements where the contract price no longer aligns with current market conditions by the time the building completes. The buyer's income remained stable, but the property's assessed value and the lender's appetite for high-density stock shifted the approval terms.

Variable Rate or Fixed Rate for Owner Occupied Unit Loans

A variable rate gives you access to an offset account and the flexibility to make extra repayments without penalty, which works well if your income includes irregular bonuses or RSU vesting schedules.

Fixed rates lock in your repayment amount for a set period, which suits buyers who prefer certainty and plan to hold the property long-term without accessing equity or refinancing. The limitation is that most fixed rate products either don't include offset functionality or cap extra repayments at $10,000 to $20,000 per year. If you're paying down the loan faster than scheduled, those restrictions reduce the value of fixing.

A split loan combines both structures. You might fix 60% of the loan amount to secure a portion of your repayments, while leaving 40% on a variable rate with a linked offset account where you park your savings and bonus payments. The variable portion benefits from offset calculations, reducing interest on that segment, while the fixed portion protects you if rates climb during your holding period. For IT project managers who receive quarterly bonuses or annual incentive payments, this structure matches how your income actually arrives rather than forcing you into a single product that only suits part of your financial pattern. You can read more about how different income types affect loan structuring in our guide to home loans for IT project managers.

What Lenders Review in Body Corporate Documents

Before approving a unit loan, lenders request the body corporate's financial statements, sinking fund balance, insurance certificates, and meeting minutes from the past 12 months.

They're looking for three things: adequate funds for upcoming maintenance, no unresolved disputes or legal claims, and confirmation that building insurance covers the full replacement value. If the sinking fund sits below 10% of the annual levies, or if meeting minutes reference structural defects without a funded repair plan, the lender will either decline the application or reduce the maximum loan amount to offset the perceived risk. Some lenders also apply postcode-based restrictions for certain high-density precincts where oversupply or construction defects have affected resale values.

In our experience, this is where loan pre-approval timelines extend. The lender might approve your income and deposit within 48 hours, but then spend two weeks reviewing strata documents before issuing formal approval. If you're purchasing in a competitive market where vendors expect short settlement periods, having home loan pre-approval that already accounts for body corporate review gives you a genuine advantage when negotiating terms.

Interest Only Repayments for Investment Units

Interest only loans let you pay only the interest portion of the loan for a set period, typically one to five years, which reduces your monthly repayment amount and frees up cash flow for other investments or offset contributions.

This structure suits buyers who plan to hold the unit as an investment property and want to maximise tax deductions while building equity elsewhere. The interest payments remain fully deductible if the property generates rental income, and the lower repayment amount improves your borrowing capacity if you're planning to purchase another property within the interest only period. Once the interest only period ends, the loan reverts to principal and interest repayments, and the repayment amount increases to account for the principal portion that wasn't paid during the initial term.

For IT project managers buying their first investment unit while continuing to rent elsewhere, this approach aligns with a rentvesting strategy where you prioritise location and capital growth over immediate owner occupation. The cash flow difference between interest only and principal and interest repayments can be redirected into an offset account linked to the loan, which reduces the interest charged without locking the funds inside the loan itself. You can explore how this works in practice through our overview of interest only loans for tech industry workers.

Portable Loans and Refinancing When You Upgrade

A portable loan allows you to transfer your existing loan to a new property without reapplying or paying discharge fees, which saves time and cost if you're upgrading from a unit to a house within a few years of your initial purchase.

Not all lenders offer portability, and those that do often require the new property to meet their current lending criteria at the time of transfer. If you purchased a unit with a 10% deposit and you're now upgrading to a house that requires a larger loan amount, the lender will reassess your income, expenses, and the new property's valuation before approving the portability request. If your circumstances have changed or the new property falls outside their lending policy, you'll need to refinance with a different lender instead.

Refinancing gives you the opportunity to access better interest rates, consolidate debt, or release equity for your next deposit, but it also resets your loan term unless you specify otherwise. For project managers whose income has increased through promotions or role changes since the original loan was approved, refinancing can unlock higher borrowing capacity and better product features than were available at the time of your first purchase.

Call one of our team or book an appointment at a time that works for you

If you're ready to move forward with purchasing a unit, or if you need clarity on how your income structure affects loan options, call one of our team or book an appointment at a time that works for you. We work with lenders who understand variable income and high-density property lending, and we'll structure the application to match your circumstances and timeline.

Frequently Asked Questions