Mcmahons point mortgage broker
McMahons Point mortgage broker
A mortgage broker
who knows McMahons Point.
Apartments listed anywhere from under a million to past ten, on a peninsula where the outlook is often most of what you are paying for. We compare 35+ lenders and it costs you nothing.
35+
Lenders
10+
Years experience
1,000+
Clients helped
$0
Cost to you
About McMahons Point
What the 2060 market actually looks like
History of McMahons Point
Named for a boatbuilder who worked the point in the nineteenth century, when the peninsula ran on shipyards and ferries. Blues Point Road became the village spine and stayed one, and the terraces and cottages behind it survived the Bridge and the later towers. Blues Point Tower has stood at the tip since 1962 and remains the landmark most people picture.
McMahons Point property market
Overwhelmingly apartments. Listing data typically shows around ten times as many apartments for sale as houses, in everything from interwar walk ups to the towers on the water. The handful of houses are terraces and cottages on the steep streets. Most residents rent, and the buyer mix runs from first home buyers in a compact one bedder to downsizers paying a great deal for an outlook.
McMahons Point property prices
The widest range of almost any small suburb in Sydney. Apartments have been listed here from under a million to past ten million at the same time, depending almost entirely on the outlook and the building. Houses sit around the high two millions with rental yields near 2.8%. Given that spread, a suburb median tells you very little about what you will actually pay.
Borrowing in McMahons Point
Two things do most of the work. Loan size, because a purchase at the upper end sits past where lenders apply their own internal limits, and the field narrows quickly. And the outlook, since so much of the price sits in the view, which is what a valuer is judging rather than the floor area.
McMahons Point is one of 32 suburbs we cover across the North Shore, and the one with the widest gap between the cheapest and dearest apartment.
Buying at the
top of the market?
Past a certain loan size a single lender's internal limit is often the whole difference between yes and no.
Your broker
Meet Ali Hasani
Ali Hasani is the founder of Buyvest. He has worked in home loans for more than ten years, a lot of it at Commonwealth Bank. We meet clients face to face, or by phone, Zoom and Teams, at night and on weekends as well as work hours. We take your loan to 35+ lenders, compare the numbers, and show you the options. Ali is an MFAA accredited broker with a Diploma of Finance and Mortgage Broking Management and a Post Graduate in Accounting.
Buying here
as an investment?
Yields sit under three per cent, so the rent does far less work than the price suggests. Your own income carries the assessment.
Client stories
How we helped
Three real situations, and what actually happened in each one.
The size chose the lender.
The purchase sat past the point where several lenders apply their own internal limits, and their bank came back with a cap well under what was needed. Nothing about their income or their deposit was the problem. We worked out which lenders were comfortable writing at that size, what extra documentation each wanted, and how much of the value they would advance. One suited the purchase and it settled on time.
The view carried most of it.
They were paying a large premium for an uninterrupted harbour outlook, and wanted to know it would hold. We had the valuation ordered through a lender whose panel understood the building, and it supported the price. What we also did was flag what to check with their conveyancer, because a view that is not protected can change if something is approved in front of it. Worth knowing before you pay for it.
The rent did not go as far.
They were buying an apartment to let and had worked out the numbers using the full rental appraisal. Lenders do not. They count a portion of expected rent, commonly around eighty per cent, and assess the loan at a rate well above the actual one. With local yields under three per cent, that left their own income doing most of the work. Knowing that first changed the price range they searched in.
These are past client stories, with details changed for privacy. Your own result depends on your situation and what the lender decides.
Free guides
What to know before you buy
Three free guides covering how a McMahons Point purchase actually runs, from pre-approval to settlement.
Home loan pre-approval
What it covers, and how long it lasts.
Read the guide
Choosing a home loan
Fixed, variable, offset and redraw.
Read the guide
Settlement day
What has to be ready before then.
Read the guide
Read the free guides in the Loan Vault to know how the home buying process works in NSW.
What we do
Home loans for every McMahons Point plan
First home
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Next home
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Investment property
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Refinancing
Learn more
Construction loans
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Bridging loans
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Guarantor loans
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No LMI and waived LMI
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Self employed home loans
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Not sure where to start? See what a mortgage broker actually does.
When did you last
check your rate?
We compare your current home loan against 35+ lenders. If a refinance saves you money we will show you the numbers, and if it does not we will tell you that too.
Your job matters
Home loans by profession
Some lenders drop lenders mortgage insurance for certain jobs, and the city is a ferry ride away. The lists and the limits differ from one lender to the next, so it is worth checking where yours sits.
Home loans for
Doctors
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Home loans for
Dentists
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Home loans for
Accountants
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Home loans for
Lawyers
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Not sure if your job is on a list? See No LMI and waived LMI home loans, or ask us and we will check every lender on our panel.
Plan ahead
Run the numbers
Free tools that show you where you stand right now.
How it works
Three steps to your loan
1
Financial health check
2
Get pre-approved
3
Settle, then stay in touch
Client reviews
5.0 ★★★★★ on Google
Reviews from clients across Sydney.
★★★★★
"Cannot recommend Ali highly enough. He made a complicated and daunting process incredibly easy, and continually went above and beyond. Would absolutely recommend him to everyone."
★★★★★
"Ali is super knowledgeable, reasonable and personable! He will be realistic with what is possible but always find you the best deal whilst making you feel looked after."
★★★★★
"Ali is a maestro with a wealth of experience in home lending business, mixed with excellent people skills. His professional and supportive approach is a safe pair of hands to work with to get the required funds for your goal in the property market."
FAQ
McMahons Point questions, answered
Why use a mortgage broker in McMahons Point?
Because the market here spans a very wide range and the lending questions differ completely at each end. A compact one bedder raises minimum size and building questions. A purchase at the upper end runs into lender limits on loan size. In between sits the outlook, which is what a valuer is really judging. Brokers also have a legal duty called the Best Interests Duty, which means we have to put you first.
Are large loans assessed differently?
Not harder, but they are looked at more closely and the field narrows. Past certain loan sizes some lenders add extra checks, want more documentation, cap how much of the value they will lend, or apply internal limits. At the top of the McMahons Point market that point arrives well before the price does, so knowing which lenders are comfortable at what size is often the whole exercise rather than a detail in it.
How does a valuer treat a harbour view?
As a real and significant component of value, recorded and compared against other properties with similar outlooks. Two things matter. An uninterrupted view carries far more weight than a filtered or partial one, and the valuer takes the view as it stands on the day. Since a large share of the price here sits in the outlook rather than the floor area, that judgement carries more of the valuation than it would almost anywhere else.
Can my view be built out?
It depends on what is in front of you and what the planning controls allow, and it is a question for your conveyancer rather than a lender. Where the outlook is over water or a park, it is generally secure. Where it passes over a lower building or a site that could be developed, it may not be. A lender values what exists today, so if a large premium is going into the view it is worth understanding what could be approved nearby before you commit.
Is there a minimum apartment size lenders will accept?
Most set one, and the older blocks here include studios and compact one bedders that sit close to the line. It is usually measured on internal living area rather than the whole title, so a balcony and a car space do not count towards it. When a unit falls under, some lenders decline and others lend a much smaller share of the price. Every lender draws the line differently, so the floor plan is worth checking before you offer.
What about company title apartments?
They exist here in some of the older blocks, and it changes everything about the lending. With company title you own shares in a company that owns the building rather than the apartment itself, and the company can vet who buys in. A good number of lenders will not fund it at all, and those that do lend a smaller share of the value. The contract tells you which it is, so confirm before you get attached to the price.
Do lenders treat the towers differently?
Some do. Where a lender classifies a building or a postcode as high density it will lend a smaller share of the value, which means a larger deposit. A few also cap how many apartments in one development they will hold, so in a tower where one lender has written most of the loans you can find they simply will not take another. None of that is uniform, which is why the specific address gets checked rather than the suburb.
What should I check in the strata report?
The balance of the capital works fund against the age of the building, any special levy struck or being discussed in the minutes, and whether there is a live dispute. On a waterfront building, look for anything about concrete, balconies or the seawall, since salt air brings work forward. In an older walk up, waterproofing and roofing tend to arrive together. Order it early rather than treating it as a formality after exchange.
How much of the rent will a lender count?
Not all of it. Lenders count a portion of the expected rent as income, commonly around eighty per cent, to allow for vacancy, management and costs, and they differ on the exact figure. They also assess the new loan at a rate well above the actual one. With yields here under three per cent, the rent contributes far less than the price suggests, so your own income carries most of the assessment.
Does the low yield matter if I am buying to live in?
Not for the loan you are taking now, since lenders assess your income rather than what the place would rent for. Where it matters is later. If you keep this apartment and buy again, the rent it produces has to help carry it in the next assessment, and at these yields it does less of that than a property further out would. That is worth knowing when you decide whether to keep or sell.
What happens if the valuation comes in under the price?
The lender lends against the valuation rather than the price, so you cover the gap in cash at settlement. A lender will not order a valuation on a purchase until there is an exchanged contract, so the buffer has to exist before you sign. Where a large share of the price sits in a view, that risk is real, because the premium is a matter of judgement. A different lender uses a different panel and can return a different number.
How much deposit do I need in McMahons Point?
A 20% deposit avoids lenders mortgage insurance, and given the price range here that figure varies enormously depending on which end of the market you are in. On a compact apartment it is reachable. At the top end it is a very large sum and the lender may want more again. Some professions can skip the insurance entirely, and if you already own, equity usually does the job instead of cash.
Can I buy my first home in McMahons Point with a 5% deposit?
If you are an eligible first home buyer, sometimes, and only at the lower end since the price has to sit under the scheme's property cap. The Australian Government 5% Deposit Scheme lets you buy with a 5% deposit and pay no lenders mortgage insurance, with Housing Australia guaranteeing the gap to 20%. It is a guarantee, not a grant. The building still has to suit the lender, and on older stock here that is often what decides it.
How does a guarantor loan work?
A family member, usually a parent, offers part of the equity in their property as extra security for your loan. They do not make your repayments and no cash changes hands. Most are set up as a limited guarantee, so only a defined portion of their home is at risk. One thing worth knowing here is that a guarantee does not rescue a building or a title a lender will not fund, so the apartment still has to pass on its own.
What is the difference between a guarantor and a co-borrower?
A guarantor supports the loan with their property but is not on the title or the debt. A co-borrower is on both, so the whole loan shows on their credit file and counts against whatever they want to borrow next. Co-borrowing lifts what you can afford because both incomes count. At the upper end of this market that is a very large figure for a co-borrower to carry, which matters if they have plans of their own.
What is an offset account and is it worth having?
An offset is a transaction account linked to your loan. Every dollar in it reduces the balance interest is charged on, without being locked away. On a larger loan here the effect is significant, because the saving scales with the balance. On a compact apartment with a modest loan, check the package fee against the balance you actually hold, since a basic product with no fee can win.
Offset or redraw. What is the difference?
Redraw means paying extra off the loan and taking it back later. Offset means the money sits beside the loan in its own account. The interest effect is similar. What differs is access and treatment, because redraw can be restricted by the lender and money you redraw counts as new borrowing rather than your own savings returning. If you might keep this apartment and let it when you move on, offset is the cleaner structure. Your accountant can explain why.
Should I fix my rate or stay variable?
Fixed gives certainty for a set period, usually one to five years. Variable gives flexibility, an offset account and unlimited extra repayments. Most fixed loans do not come with a usable offset, which matters more on a larger loan because the offset is working against a big balance. Breaking a fixed loan early can be expensive, so the term you choose matters more than the opening rate.
Can I split the loan between fixed and variable?
Yes, and on a larger loan here it is often the sensible answer. You fix a portion for repayment certainty and leave the rest variable so the offset still works against it. A good rule is to leave at least as much variable as the balance you typically hold in offset. On a smaller loan check whether the lender charges per split, since that changes the arithmetic on a modest balance.
Interest only or principal and interest?
On a home you live in, principal and interest is almost always the answer, because interest only means you owe the same at the end of the period as at the start. On an investment here it is a real question given how little the rent covers. The catch is that lenders assess an interest only loan on the repayment it reverts to, not what you pay now, so it cuts into what you can borrow next. Worth working through with your accountant.
When I refinance, does my loan term reset?
Only if you let it, and at the upper end of this market letting it is expensive. Most refinances default to a fresh thirty year term, which makes the monthly repayment look better while quietly adding years of interest on a very large loan. Ask for the remaining term instead, so a loan with twenty years left stays a twenty year loan. Nobody offers this, so it has to be asked for every time.
How much does it cost to refinance a home loan?
Usually a few hundred dollars to around a thousand. Your current lender charges a discharge fee, there are government fees to move the mortgage, and the new lender may charge a settlement or valuation fee, though plenty waive them. If you are on a fixed rate there can be break costs, and on a large balance those can be substantial. On a waterfront apartment expect a full valuation rather than a desktop one, which adds a little time.
I live in McMahons Point but want to buy elsewhere. Does that matter?
Far less than people expect. A lender assesses you, then it assesses the property you are buying. Where you currently live barely features. What does matter is the postcode and property type you are buying into, because lender restrictions attach to the security rather than to your address. Given the yields here, plenty of local owners buy an investment somewhere with a stronger return rather than adding a second property nearby.
Should I use my bank or a mortgage broker?
A bank can only offer its own loans, its own valuation panel and its own rules. In a suburb where the price range is this wide, one lender's limit at the top end or one lender's minimum size rule at the bottom can decide the whole thing, and you usually find out after you have applied and paid for a valuation. A broker checks it against many lenders first. Buyvest compares 35+ lenders at $0 cost to you.
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McMahons Point sits on a small peninsula, so everything around it is close. Lavender Bay is next door and Milsons Point and Kirribilli sit under the Bridge. North Sydney is up the hill, with Wollstonecraft, Crows Nest and St Leonards running up the line. East along Military Road are Neutral Bay, Cremorne and Mosman, and north sit Cammeray and Northbridge. We cover all of them, so if your search shifts a suburb or two, you are not starting from scratch.