In main centres where population pressures result in a huge increase in property cost, apartments are cheaper, in relative terms, and provide a viable ownership alternative to renting.

But apartment buyers could be left tens of thousands of dollars in debt after borrowing deposits for unbuilt units that they then cannot get the remaining funds for.

Martin Dunn, of estate agency City Sales, said Australian banks had "pulled the plug" on the New Zealand apartment market and were refusing to give would-be buyers the remaining 90 per cent for their mortgage.

Dunn said this had occurred to "unsophisticated investors" who had purchased Auckland central apartments off the plans at property seminars, often "on the spot". They had been granted loans to pay for their deposits but when they had gone back to their banks to seek the remaining money they had been turned down.

At Edge we know that lending criteria varies greatly between banks.

A lot of the investors had not been aware that the banks had withdrawn from supporting the apartment market.

"We're already getting a few alarmed what I call - without wanting to be unkind - unsophisticated investors who are saying to their banks, 'We've bought this apartment in Auckland and settlement's coming up in January, we're going to need the whole lot'. And the banks are saying, 'You must be joking'." says Dunn. City Sales had resold about nine such apartments in the last month.

Edge are specialists in apartment lending and know best how to fit specific apartments to the right lender.

We are here to make getting finance easy, and are always available to answer any questions about apartments, so if you are concerned or thinking about a mortgage for an apartment contact us for a chat.