A dual key apartment or house has two self-contained living areas, each with its own entry, on a single title. Many lenders will finance one, but some limit the loan amount, want a bigger deposit or decline them in certain buildings, because a dual key can only be sold as one property to a smaller pool of buyers. Two rents can be counted, with evidence.

Dual key properties at a glance
Feature What it means for a loan
One title One security; cannot sell one part separately
Two rents Both can count as income with leases or an appraisal
Resale market Smaller, which some lenders price in
Size of each part Small studios inside the unit can trigger size rules
Deposit Often larger than for an ordinary unit

What exactly is a dual key property?

Usually an apartment or townhouse split into a main residence and a smaller studio or one-bedroom part, sharing a common entry or lobby but able to be locked off from each other. Some are designed this way from the start in new developments in suburbs such as Parramatta, Liverpool and Blacktown. It is different from a duplex or a house with a granny flat, which are separate dwellings, often on separate titles.

Why are some lenders cautious?

  • Resale. Because the parts share one title, a buyer must purchase both, which narrows the market.
  • Valuation. Valuers may value it closer to a standard unit, not the sum of two rents.
  • Small parts. A studio component under a lender’s minimum size can raise concerns about the whole property.
  • Concentration. Lenders limit their exposure to certain buildings and postcodes.

How is the rental income counted?

Lenders count rent from both parts, usually after reducing it to allow for vacancies and costs, the same way as other rental income. They want leases or a written rental appraisal for each part. Because two smaller rents often add up to more than one larger rent, a dual key can show a higher yield, which helps servicing. The rental yield calculator shows the gross and net figures.

Can you live in one part and rent the other?

Yes, and lenders treat that as an owner-occupied loan with rental income from the other part. Some first home buyers do this to help with repayments. Check whether the 5% Deposit Scheme and first home buyer duty relief apply to your plan before you commit, because rules about living in the home and using it for income can affect eligibility.

What should you check before buying?

  1. The size of each part, including the internal living area.
  2. Strata by-laws on letting and use.
  3. Separate meters for utilities, which tenants expect.
  4. Rents achieved for similar dual keys nearby.
  5. Lender appetite for the specific building, before you pay a deposit.

The guide to apartment home loans in Sydney lists the general rules lenders apply to units.

A worked example

An investor looks at a new two-part dual key in Parramatta: a two-bedroom main unit and a studio, on one title. The combined rental appraisal is higher than for a standard three-bedroom unit in the same building. The lender counts both rents after its usual reduction, but limits the loan to a lower share of the value than for an ordinary unit, so the investor needs a larger deposit. Comparing lenders first shows which one gives the best combination of loan size and rate.

Questions people ask

Can I get a home loan for a dual key apartment?

Yes, from many lenders, though some limit the loan size or decline certain buildings.

Can a dual key be split and sold separately?

Not while it is on one title. Changing that would need strata subdivision approval, which is often not possible.

Do lenders count both rents?

Usually yes, with leases or an appraisal for each part, reduced for vacancies and costs.

Dual key vs dual occupancy: what is the difference?

A dual key is two self-contained living areas on one title, sold as one property. A dual occupancy is two dwellings on one lot, such as a duplex, which can often be subdivided onto separate titles and sold separately. Lenders treat a subdivided dual occupancy as two ordinary homes.

Are dual key apartments a good investment?

They can earn more rent than one larger unit, but resale is limited to buyers who want the same set-up, and some lenders cap the loan. Check the strata rules, both rents and how many lenders accept the building before you buy.

Charles Touma checks which lenders accept a specific dual key building and how they treat the two rents, before you sign. A free 30-minute call covers it. General information only, not credit advice; lender policies change and every loan is subject to the lender’s assessment.

Sources: NSW Government, buying a strata property; ASIC, Regulatory Guide 209, checked 18 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.