Owners of Sydney’s Mascot Towers are being offered a lifeline.

A proposed deal could see residents’ strata debts and mortgages cancelled.

Under the deal owners of the apartments would sell their homes to a new commercial consortium.

New South Wales Building Commissioner David Chandler says there are no winners in the deal, and it is likely the apartments will be sold at a loss.

Mr Chandler maintains this is unfortunately the best outcome residents can hope for.

More than 130 units across two towers were deemed unliveable in 2019 after cracking was discovered.