Buying a unit or townhouse in Mackay: what lenders look at

Published 1 November 2026 · Reviewed by Luke Curtis, Director & head broker

Units and townhouses are often the most affordable way into the Mackay market, whether that's a two-bedroom unit near the CBD and the river, a townhouse in Andergrove or North Mackay, or an apartment out towards the Harbour and the Northern Beaches. Here's what changes when the home you're buying sits inside a body corporate.

1. Body corporate levies count as a living expense

When a lender works out how much you can borrow, it subtracts your regular commitments from your income. Body corporate levies are one of those commitments. A complex with a pool, lift, gardens and a large building insurance bill will usually have higher levies than a small block of four townhouses, and that difference can reduce your borrowing power.

What to do: get the current levy amounts early. In Queensland, the seller now has to give you a body corporate certificate before you sign (more on that below), and it shows the levies. Pass it to your broker so the numbers are run on real figures, not guesses.

Insurance is a big part of levies in North Queensland. Building insurance for strata complexes in cyclone-exposed areas has risen sharply in recent years, and that flows straight through to owners. A complex's insurance renewal history is worth asking about.

2. The type of property matters

Lenders generally group units and townhouses into a few categories:

Standard residential units and townhouses – the easiest to finance, and usually treated much like a house.
Small units and studios – some lenders apply minimum internal floor areas, and very small units may face a lower maximum loan-to-value ratio or a narrower choice of lenders.
Serviced apartments and holiday-letting complexes – common around Airlie Beach and the Whitsundays. Where a unit is tied to a hotel-style letting pool or management rights arrangement, many lenders restrict the loan size or decline altogether.
High-density and off-the-plan apartments – lenders may look at how many units are in the building and how many are owned by investors.

Policies differ between lenders, so the same unit can be easy with one lender and difficult with another. That's one of the main reasons buyers of units use a broker.

3. Location and concentration

Lenders keep an eye on their exposure to particular postcodes and building types. In mining-linked markets, some apply tighter rules where a town relies heavily on one industry. Mackay itself is a regional city with a broad economy, but if you're buying a unit in Moranbah, Dysart or another Bowen Basin town, expect lenders to look more closely at the deposit and the property. We cover this in more detail in our guide to buying in Moranbah and the Isaac.

4. The valuation

The lender's valuer will compare your unit with recent sales in the same complex and nearby. If there have been few sales, or recent sales were lower, the valuation can come in below the contract price. That gap usually has to be covered by your own funds. Getting a contract that's subject to finance gives you time to find out before you're locked in.

First home help that can apply to units

These programs aren't limited to houses. As at October 2026:

The 5% Deposit Scheme. Since 1 October 2025, the Australian Government 5% Deposit Scheme has no income caps and no waitlist, and buyers using it don't pay lenders mortgage insurance. It covers houses, townhouses and apartments, new or existing. In Queensland the property price cap is $1,000,000 in Brisbane and the listed regional centres (the Gold Coast and Sunshine Coast) and $700,000 in other areas, which is where Mackay sits on Housing Australia's list. Check the postcode tool before you shop. Single parents and legal guardians can buy with a 2% deposit. You apply through a participating lender, and once you have pre-approval you have 90 days to sign a contract.

The $30,000 Queensland First Home Owner Grant. This is for new homes only, including off-the-plan units and brand-new townhouses that haven't been lived in or sold as a residence. The home and land must be valued at less than $750,000 including variations, and you must move in within a year and live there for at least six continuous months.

Transfer duty (stamp duty) concessions. For contracts dated from 1 May 2025, first home buyers of a new home, including a new unit, pay no transfer duty, with no cap on the value. For an established home, the first home concession can also apply: no duty for homes valued at $700,000 or less, and a partial concession for homes valued under $800,000. From 1 August 2026, each buyer needs to be an Australian citizen, permanent resident or specified foreign retiree to claim the concession.

The rules for each program are detailed and change from time to time, so check the official sources below or talk them through with a broker before signing.

Before you sign: Queensland's seller disclosure rules

Since 1 August 2025, Queensland sellers have had to give buyers a disclosure statement and certain certificates before the contract is signed. For a unit or townhouse in a community titles scheme, that includes the community management statement and a body corporate certificate. The certificate shows the levies, insurance details, by-laws and other key information about the scheme.

For borrowers, this is useful: you can see the levies before you commit and hand them to your broker straight away. If the seller doesn't give you the documents, or the information turns out to be materially wrong, Queensland law gives buyers rights to end the contract before settlement. Your conveyancer or solicitor can explain how this applies to you.

It's also worth reading the body corporate's recent minutes and asking about special levies, defects or upcoming major works. A big special levy shortly after you settle can strain a budget that was already tight.

Ready to look at units?

If you're weighing up a unit or townhouse in Mackay, the Whitsundays or the Bowen Basin, start with our 2-minute home loan check, or book a call with a local broker. We'll look at which lenders suit the property you have in mind and what the levies mean for your borrowing.

Start the 2-minute home loan check · Book a call

General information only – speak to a broker about your situation.

Common questions

Can I buy a unit in Mackay with a 5% deposit?

Possibly. The 5% Deposit Scheme covers apartments and townhouses, and in areas outside Brisbane and the listed regional centres the Queensland price cap is $700,000. You'll still need to meet the lender's own requirements, and some lenders limit small units or holiday-letting complexes.

Do body corporate levies reduce how much I can borrow?

Yes. Lenders include levies in your regular expenses, so a unit with higher levies will usually support a smaller loan than a similar-priced home without them.

Can I get the $30,000 grant on a unit?

Only if it's a new unit that hasn't been lived in or sold as a residence, and the total value is less than $750,000. Established units don't qualify for the grant, although transfer duty concessions may still apply.

Is a townhouse treated the same as a house?

Often, yes, if it's a standard residential townhouse. It still sits in a body corporate, so the levies and the scheme's documents will be part of the lender's review.

Why would a lender decline a unit?

Common reasons include very small floor areas, hotel-style or holiday letting arrangements, a high concentration of similar units, or a valuation below the purchase price.

Sources

This guide is general information only and doesn't take into account your objectives, financial situation or needs. Talk to us about your circumstances before acting on it. Related: First home buyers.

Buying a unit or townhouse in Mackay: what lenders look at

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