Home Loans Sydney

The price of properties in Sydney varies hugely between particular areas and property types. For example, in 2019 the median house price in Western Sydney’s Penrith was $655,000, compared to Bondi which boasted a median price over the same period of $2,392,000. Across the greater Sydney region as a whole though, the median house price for 2020 was $872,000.

Being pre-approved for a home loan can be helpful in terms of speeding up the property buying process, and giving you the peace of mind that you have access to the amount of credit that you have budgeted for. To get preapproved, you should apply for preapproval from your preferred lender, providing all of the documents necessary for the process. This will not guarantee you credit, but does lay the groundwork for a swift approval down the line.

Sydney is Australia’s most expensive city to buy homes by a considerable measure, with Melbourne and Brisbane coming in second and third respectively. Sydney’s daunting property valuations can make the prospect of taking on a home loan seem challenging, which is why great care should be taken in ensuring that you are ready for the task.

Most lenders will require a minimum deposit of 5% of the total property value, or in other words, a ‘loan to value ratio’ (LVR) of 95%. At this percentage though, most lenders will require extra fees to cover lenders’ mortgage insurance, and the borrower will incur greater interest expenses moving forwards. Saving a sizable deposit for a home in Sydney takes time and discipline, however the larger your deposit, the better you will be positioned to efficiently pay off your home loan.

The NSW government offers stamp duty concessions under the First Home Buyer Assistance Scheme which relieves first time home buyers of their stamp duty costs for the purchase of homes under a particular value depending on the property type. For new homes valued under $800,000 and existing homes valued under $650,000, no stamp duty needs to be paid.

Sydney property buyers will also be eligible for the federal government’s first home owner’s grant which offers those building new homes a $10,000 cash credit towards their purchase.

It is impossible to predict the future, however Sydney property prices on average have appreciated steadily for over fifty years now, even when discounting the effect of currency inflation on price. As a rule, freestanding homes and townhouses tend to appreciation at a higher rate then units and apartments due to the value of the land that they occupy as well as the structure itself. In some Sydney suburbs, apartments have recently experienced minor depreciation, however over all, property prices have increased over time.

Relative to coastal and harbourside suburbs, or the Northern Beaches, Sydney’s far West and South-West suburbs are currently priced cheaply, however this discount comes with long commutes into the CBD, and more limited public transport infrastructure.