What does mortgage mean?
A mortgage is a loan used to buy into the property market, whether it’s a home loan, a commercial property loan or a loan for a property development. A mortgage in Sydney, or any other Australian state or territory, will come with a range of terms and conditions and possible fees and charges.
When it comes to home loans in Sydney, there are two main kinds:
- Investor. An investor mortgage in Sydney is for people who are making a loan application to enter the property market as an investor, to purchase an investment property.
- Owner Occupier. An owner occupier mortgage in Sydney is for people who make a loan application to buy a house they are intending to live in.
Banks and lenders will also charge interest rates on home loans. These interest rates help them cover the costs of supplying you with the mortgage in Sydney and maintaining it over the loan period. Home loans in Sydney and all other parts of Australia fall into the following two categories when it comes to interest rates.
- Fixed rate home loans. Fixed rate home loans mean the interest rate will be fixed over an agreed period, usually between 1 and 5 years. At the end of that fixed-rate period, you can apply for another fixed rate home loan or let it turn into a standard variable home loan. Fixed rate home loans can help with your budgeting as your mortgage repayments will remain exactly the same over the agreed period.
- Variable rate home loans. A variable rate mortgage in Sydney is one where the interest rate may increase or decrease over the life of the loan, based on a range of both internal and external variables. These variables can include everything from the cost of supplying the home loan to you, to the state of the national or international economy.
Speak with Mortgage House’s expert lenders to find out whether fixed or variable may be a suitable option for you and your family, and how that aligns to your property market goals.
What is the average mortgage in Sydney?
The average mortgage in Sydney rises and falls with median house prices, which can be affected by a range of different local, national and international factors. The last available data with the Australian Bureau of Statistics (2016) shows that the average Sydney family pays about $2167 a month on their mortgage. That is, obviously, also a figure that can change with economic conditions. The amount of mortgage Sydney households pay also comes down to how much deposit they have. The higher deposit you have, the less home loan home buyers need. Most banks and lenders require deposits of about 20% of the cost of the home, meaning they may lend up to 80%. This is to protect them against default and help recoup their costs if they have to sell the property as a result. To find out what the repayments of a mortgage Sydney people may apply for may be, use one of our Mortgage Repayment Calculators below.
A Mortgage Repayment Calculator can help save you money, by giving you important information about how interest rates, loan amounts and loan periods effect your weekly, fortnightly or monthly repayments. The clearest piece of information you’ll discover is how much money you may save if you pay off your loan sooner. All you need to do is fill in the information as accurately as you possibly can, information about interest rates, loan periods, loan amounts and loan types. You’ll also need to know whether there are introductory rates linked to your mortgage in Sydney as well. All this information is available by clicking on any of Mortgage House’s home loan options online and using your own financial circumstances.
Once you do this, a Mortgage Repayment Calculator will show you what your mortgage repayments may be and how much interest you may pay over the life of the loan. It will also show you how much of each mortgage repayment will be made up of interest and how much will be made up of the principal amount.
Mortgage Repayment Calculator
Important Disclaimer: This is intended as a guide only. Details of terms and conditions, interest rates, fees and charges are available upon application. Mortgage House’s prevailing credit criteria apply. Please note that your actual fortnightly repayment would be equal to the monthly repayment amount divided by two. Weekly repayments would equal the monthly repayment amount divided by four. If you choose to pay fortnightly or weekly, your actual repayments will be higher than repayments shown on this page. You can reduce the term of your loan if you choose to make repayments fortnightly or weekly. We recommend you seek independent legal and financial advice before proceeding with any loan.
Which lender has the best mortgage rates in Sydney?
Discovering the best interest rates for a mortgage in Sydney – home buyers may find it beneficial to do a little bit of homework. Different home loans have different interest rates as they can cater to specific kinds of home buyers. As a result, risks can be offset with higher or lower interest rates, and your credit rating may also limit the kinds of mortgage you can make a loan application for. A poorer credit rating may mean you face higher interest rates when you apply, and a strong credit rating may mean your mortgage broker may be able to find you a lower interest rate home loan. Either way, being able to search what home loan interest rates are available is important. At Mortgage House you can look in the one spot.
Our Best Rate Mortgage Calculator is the place to look to discover the large range of interest rates we have to offer. The calculator ranks our Sydney mortgages in interest rate order, as well as giving you information about fees and charges of each home loan. You’ll also be able to see what the weekly, fortnightly and monthly repayments for each home loan may be.
Best Rate Mortgage Calculator
Important Disclaimer: This information is intended as a guide only. The calculation of fortnightly and weekly instalments varies with the specific loan product. Higher loan repayments will be required on principal and interest loans where the instalment calculation is based on half the monthly payment for a fortnightly payment or a quarter of the monthly payment for a weekly payment. Details of terms and conditions, interest rates, fees and charges are available upon application. Mortgage House's prevailing credit criteria apply. We recommend you seek independent legal and financial advice before proceeding with any loan.
One of the columns in our Best Rate Mortgage Calculator is the Comparison Rate. A Comparison Rate is a mechanism banks and lenders have to display by law that attempts to compare the long-term total costs of a mortgage in Sydney. It takes into account fees and charges you may have to pay, to make it easier to understand long-term costs. Some home loans can also have introductory interest rates, which means rates may be lower for a short periods such as 6 months. This can make them seem more attractive in the short term but may cost you more in the long term.
Can I get another mortgage in Sydney?
Giving your current home loan a health check every now and again can be good practice. There may be better interest rate deals out there than when you first took out your current mortgage, and your financial situation may have changed. Switching a home loan doesn’t have to be a difficult thing. In fact, it can be quite simple. Our Switching Mortgage Calculator can give you a lot of the information you need, in an easy-to-understand way. All you need to do is enter the details of your current home loan, and any details you have about the loan application you are looking to make. Our mortgage calculator will immediately tell you how much you may be able save in both repayments and over the life of the loan.
Switching Mortgage Calculator
Important Disclaimer: This is intended as a guide only. Details of terms and conditions, interest rates, fees and charges are available upon application. Mortgage House's prevailing credit criteria apply. We recommend you seek independent legal and financial advice before proceeding with any loan. * The interest rate shown on Toggle products is a blended rate comprised of 50% fixed interest rate and 50% variable interest rate. The Comparison Rate for each of the home loan products contained in this page is based on a loan of $150,000 over a 25 year term. Fees and charges may be payable. * This mortgage calculator shows indicative repayments based on 12/26/52 equal repayments for monthly/fortnightly/weekly options.
WARNING: The comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Another reason to think about getting another mortgage in Sydney is that there may be more features available on the market today than there was when you put in the loan application for your current loan. Features can make a home loan more attractive and can, if used well, save home buyers a lot of money over the life of the loan. Some of the features available with Mortgage House home loans today include:
- Additional Repayments. Being able to make extra repayments at any time can save you thousands, as you can pay off your home loan sooner and save on interest.
- Redraw. Redraw is a great feature if you want to make additional repayments but aren’t sure whether you can afford it regularly. With this feature, home buyers can make extra repayments or lump sum payments and then withdraw them whenever they want, for any purpose.
- Offset Account. An offset account allows you to put savings in a non-interest-bearing bank account and offset it against the loan. The home loan interest is calculated on the difference between the two accounts, not just the mortgage amount.
You may also want to get another mortgage in Sydney to buy a second property, either a commercial or residential investment property. Speak with our expert lenders about suitable options for you and your family.
Can I increase my mortgage in Sydney?
If you’re looking to increase your mortgage in Sydney, the first port of call could be equity. Equity is the difference between what your property is worth and how much you have to pay off your mortgage. Equity can be freed up by making an application to refinance your home loan and you can use the money to invest in more real estate, renovate your property or help one of your family members become a home buyer. Some banks and lenders may also allow you to increase your mortgage for other needs, such as to buy a car. Our expert lenders are the people to speak to for information about increasing your mortgage in Sydney.