Potts Point mortgage broker
Potts Point mortgage broker
A mortgage broker
who knows Potts Point.
Studios and small apartments in art deco blocks along Macleay Street, and a good number of them bought as a city base rather than a first home. We compare 35+ lenders and it costs you nothing.
35+
Lenders
10+
Years experience
1,000+
Clients helped
$0
Cost to you
About Potts Point
What the 2011 market actually looks like
History of Potts Point
Known as Woolloomooloo Hill when the colonial villas went up in the 1830s, and one of the earliest wealthy addresses in Sydney. The estates were subdivided from the 1870s and the apartment buildings of the 1920s and 30s filled the streets that followed. Kings Cross station arrived in 1979 and the suburb has kept reinventing itself since.
Potts Point property market
Apartments almost entirely, in a compact and walkable few streets. Art deco and interwar blocks along Macleay Street and the surrounding lanes, converted mansions, postwar buildings and newer boutique developments. Studios and one bedroom apartments make up a large share of what trades, alongside a small number of substantial residences with harbour outlooks.
Potts Point property prices
A very wide range for such a small suburb, running from studios at the accessible end to full floor residences at the other. The median age is in the late thirties and the population is dense. Rents hold up well, and the mix of owner occupiers, investors and people keeping a city base makes the buyer pool unusually varied.
Borrowing in Potts Point
Two threads run through most conversations here. The apartments are often small, which narrows the field of lenders and changes what they will advance. And a good number of buyers already own a home somewhere else and are buying a second place to use themselves rather than to rent out, which is assessed differently again.
Potts Point is one of the suburbs we cover across Sydney, and the one where the most people are buying a second place rather than a first.
Buying a city base
as a second home?
It is neither a first home nor an investment, and lenders treat it differently. Worth setting up properly from the start.
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.
Looking at a
studio?
Floor area and layout decide which lenders will consider it. Send us the address before you make an offer.
Client stories
How we helped
Three real situations, and what actually happened in each one.
The equity paid the deposit.
They already owned a home outside the city and wanted a small apartment to use during the week, and had assumed a fresh deposit had to be saved. It did not. We released equity from the property they already owned to cover the deposit and the costs, so nothing came out of their savings, and set the two loans up separately from the outset.
Each property stood alone.
One lender held both of their properties as security for the same borrowing, so every request went through a review of the whole arrangement and every answer came back cautious. We refinanced and gave each property its own loan. That returned the ability to sell or refinance either one on its own, and the pricing improved along the way.
Size decided who could help.
The apartment was smaller than the internal area a number of lenders will accept, which cut the field before anything about the borrower was considered. Those still willing advanced a smaller share of the value, meaning a larger deposit than planned. We established that before a valuation was ordered rather than after, so the decision was made on real numbers.
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 Potts 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 Potts Point plan
First home
Learn more
Next home
Learn more
Investment property
Learn more
Refinancing
Learn more
Construction loans
Learn more
Bridging loans
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Guarantor loans
Learn more
No LMI and waived LMI
Learn more
Self employed home loans
Learn more
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, which is worth checking before you set a deposit target. The lists and the limits differ from one lender to the next.
Home loans for
Doctors
Learn more
Home loans for
Dentists
Learn more
Home loans for
Accountants
Learn more
Home loans for
Lawyers
Learn more
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 was very professional and was able to help with our complicated loans to refinance. He kept us up to date throughout the process and made sure my wife and I understood everything before signing and that we had no issues after settlement."
FAQ
Potts Point questions, answered
Why use a mortgage broker in Potts Point?
Because the apartments are often small and the buyers are often already owners, and both change how an application is read. A studio narrows the field before your income is considered, and a second home is assessed differently from a first. One bank tells you its own position only. We compare 35+ lenders at no cost to you, under a legal obligation called the Best Interests Duty.
Is a second home an investment loan or a home loan?
It depends on how it will be used rather than what you call it. A property you occupy yourself part of the time and do not rent out is generally treated as owner occupied, though lenders differ on how they classify a second residence. If it will be let at any point, that changes things. Be clear about the intention from the start, because it affects the rate and the assessment.
Can I service two properties without rental income?
That is the central question with a city base. There is no rent coming in to offset the second loan, so your income carries both in full, and lenders assess each at a rate above the one you will actually pay. It is very achievable and it needs testing properly rather than assumed, because the buffer applies twice over.
Should I use equity from my existing home?
It is usually the cleanest route. Rather than saving a separate deposit, you release equity from the home you already own to cover the deposit and costs, so your savings stay put. That leaves two loans, one secured by each property. How much is available depends on the valuation of your existing home and what your income supports.
Why keep the two loans separate?
Because tying both properties to one lender for the same borrowing costs you flexibility. Every later request gets weighed against the whole arrangement, and selling or refinancing either one means unpicking the other. Keeping each property securing its own loan avoids that, and it keeps the position clear if the second property ever becomes an investment.
Does the size of an apartment affect the loan?
It does, more than most buyers expect. Lenders set expectations around internal living area, measured excluding balconies and parking, and below a certain point the field narrows sharply. Those still willing often advance a smaller share of the value, which means a larger deposit. The floor plan in the contract gives you the number to work from.
Is a studio harder to finance than a one bedroom?
Generally yes, because the internal area is smaller and the pool of future buyers is narrower, which is what lenders are really weighing. It does not make a studio a poor purchase, and it does mean the lender needs choosing before you commit rather than after. Some will not consider one at all, and others are perfectly comfortable.
What about rooms in buildings with a caretaker and no kitchen?
Those are a different proposition altogether and generally not a residential security a lender will fund as a home. Where a building operates with shared facilities, no cooking in the rooms, an on site caretaker and short minimum terms, it is closer to accommodation than housing. If a listing reads that way, check what is actually being sold before going further.
Are art deco and older blocks a problem?
Age itself is rarely the issue. Condition, apartment size, how well the building is maintained and how the scheme is run matter far more. A well kept interwar block is generally straightforward. It is the specifics of the building rather than the decade it was built that a lender responds to.
Do strata levies affect what I can borrow?
Yes, because levies count as an ongoing commitment in the assessment. In an older block the levies may look modest while the forward maintenance is significant. Where you are carrying two properties, the levies on the second one come off your capacity on top of the loan itself, so they matter more than they might otherwise.
What should I look for in the strata report?
The capital works fund against the age of the building, the forward maintenance plan, any special levies raised or foreshadowed, and whether there is litigation on foot. In a building of this era the facade, the roof, the wiring and the lifts are where the money goes. Your solicitor reads it with you before you commit.
How much deposit will I need?
Twenty per cent avoids lenders mortgage insurance. On a studio here that is a reachable figure, and where the apartment is small the lender may advance less, so allow for more than you first calculate. Some occupations qualify for a waiver. If you already own, equity generally does the job in place of cash entirely.
What is lenders mortgage insurance?
A one off charge that applies once the loan passes eighty per cent of the property value, protecting the lender rather than the borrower despite what the name suggests. It is normally capitalised onto the loan. A larger deposit removes it, and so can an occupational waiver with certain lenders, a family guarantee, or the Australian Government 5% Deposit Scheme where you are eligible for a first home.
Can I use the 5% Deposit Scheme here?
At the studio and small apartment end it can occasionally work where the price sits under the scheme cap. The scheme lets an eligible first home buyer purchase with a 5% deposit and pay no lenders mortgage insurance, with Housing Australia guaranteeing the gap to 20%. It applies only to a first home you will live in, so it is not available for a second property.
How long does pre-approval last?
Around ninety days as a rule, renewable with updated payslips and statements. It tells you what a lender will consider based on your position so you can look with a real figure. It is not approval on a particular apartment, and here the building and the floor area carry real weight once a contract exists.
What happens if the valuation comes in under the price?
The lender advances against its valuation rather than the price you agreed, so any gap is covered in cash at settlement. On a small apartment a valuer has plenty of similar sales to compare against and little room for optimism. A different lender uses a different panel and can return a different figure.
What reduces my borrowing capacity?
Credit card limits regardless of what you owe, existing loan repayments, ongoing commitments, study debts and dependants. Where you already hold a home loan, that repayment is assessed at a rate above what you actually pay. Clearing small facilities before applying often does more for the outcome than a slightly sharper rate would.
Can I let the second place out later?
Often, and it changes the loan rather than being a simple decision on your part. Moving a property from owner occupied to investment affects the rate and generally needs telling the lender. It also changes the tax position of both properties, so it is worth mapping out with your accountant before you buy rather than after.
How much of the rent would a lender count if I did?
A portion rather than all of it. Expected rent is discounted for vacancy, management and running costs, with the figure differing between lenders, and the loan is then assessed at a rate above the one you pay. Strata levies come off as an expense too, which is why the counted figure sits well below the rental appraisal.
When is refinancing worth looking at?
Whenever a couple of years have gone by without comparing, because lenders reserve their sharper pricing for new customers and the gap widens quietly. Where you hold two properties it is also worth reviewing whether the securities are still arranged the way they should be, since that costs nothing to fix at the same time.
What does refinancing cost?
Generally a few hundred dollars to around a thousand per loan. Your current lender charges a discharge fee, there are government fees to move the mortgage, and the incoming lender may charge settlement or valuation fees, though many waive them. Break costs on a fixed rate get checked before anything else so the comparison is honest.
The apartment is small or the building unusual. Does that matter?
It can, and this is where a general answer is no use. How a lender treats a studio, a compact one bedroom, an older block or a building with a management arrangement over it all differ between lenders and change over time, and some will not lend at all. Send us the address before you offer and we will check the panel.
Do we have to meet in person?
No. Everything runs by phone, Zoom or Teams, and most of our clients never sit across a desk from us. Documents are shared and signed electronically, which suits people buying a city base from somewhere else entirely. If you would rather meet face to face we come to you, including evenings and weekends.
Should I use my bank or a mortgage broker?
A bank offers its own loans under its own rules, including a minimum apartment size and its own view of a second home. If your property sits under that size or your situation does not fit their box, the answer is no and you find out after paying for a valuation. We compare 35+ lenders first, at $0 cost to you.
Your Potts Point mortgage broker
Your home loan.
Made simple.
Free check. No pressure. 35+ lenders compared at $0 cost to you.
Potts Point sits on the ridge above the harbour beside Kings Cross. Elizabeth Bay and Rushcutters Bay are east, with Woolloomooloo below to the west and Darlinghurst south. The city runs west through Martin Place and Circular Quay, with Wynyard and The Rocks beyond and Town Hall, World Square Surry Hills to the south and Sydney itself in between. We cover all of them, so if your search shifts a suburb or two, you are not starting from scratch.