The cost of getting a mortgage in Sydney

Aug
14
2017

Are you in the market for a luxury apartment? You won't need to look any further than Sydney, Australia's most prestigious luxury property market. If it's your first purchase, you're probably wondering how much to set aside.

Here's a quick guide to what it'll cost you to put down a mortgage on a luxury apartment in the NSW capital.

What does a luxury lifestyle in a premier apartment complex cost?What does a luxury lifestyle in a premier apartment complex cost?

How much are the deposit and monthly repayments likely to cost?

Median monthly mortgage repayments are $2,500 in Sydney.

Sydney is undoubtedly the most expensive property market to buy in, but this also makes it the most exclusive. Median unit values, at around $797,000 (as of June 2017) are well above those of other Australian cities, CoreLogic data shows. Luxury apartments, of course, will often cost more than the median.

Taking out a home loan will help you with a large part of this cost. Be mindful that if you're looking to borrow more than 80 per cent of the total value of the apartment you'll be up for lenders' mortgage insurance.

Median monthly mortgage repayments are $2,500 in Sydney, 2016 ABS data indicates. So you'll want to factor these into your budget as well. If you're buying the apartment as an investment property, you'll be able to offset these with rent from your tenants. Median weekly rent in Sydney is currently $571.

bla bla Seasoned investors will know the ins and outs of fees, but first home buyers looking to enter the luxury property market might need some help navigating the costs involved.

What fees will you be up for?

Additional costs to consider may include:

  • Stamp duty: Otherwise known as transfer of land or business duty. For properties valued between $300,001 and $1 million, stamp duty is $8,990 plus $4.50 for every $100 above $300,000.
  • Lenders' mortgage insurance (LMI): A form of security for your lender in case you default on your home loan and can't meet your repayments.
  • Surcharge purchaser duty: Applicable to foreigners buying luxury apartments in NSW and charged at a rate of 8 per cent. 
  • Establishment fee: May be charged when you take out your loan as a one-off payment.
  • Ongoing service/admin fees: You may be up for these every year on top of your mortgage repayments.

For properties valued between $300,001 and $1 million, stamp duty is $8,990 plus $4.50 for every $100 above $300,000.

Can I access any concessions or grants?

First home buyers may be eligible to receive a range of concessions as of July 1 2017, including the abolition or reduction of stamp duty and the elimination of insurance duty on LMI (if applicable).

We recommend talking to a mortgage broker or financial planner to help you calculate how much you can afford to borrow. Once you've got your budget sorted, talk to us about finding your dream luxury apartment in Sydney. 

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