Rushcutters Bay
mortgage broker
Rushcutters Bay mortgage broker
A mortgage broker
who knows Rushcutters Bay.
Almost entirely apartments, with a price range running from some of the cheapest one bedders near the city up to harbourside residences. We compare 35+ lenders and it costs you nothing.
35+
Lenders
10+
Years experience
1,000+
Clients helped
$0
Cost to you
About Rushcutters Bay
What the 2011 market actually looks like
History of Rushcutters Bay
Named for the reeds cut here in the earliest years of the colony to thatch the roofs of Sydney Cove. The bay became a working waterfront and later a sailing centre, with the yacht club that starts the Sydney to Hobart sitting on the eastern shore. The park replaced reclaimed industrial land in the early twentieth century.
Rushcutters Bay property market
Apartments account for almost everything, with houses barely present at all. The stock runs from small older blocks up through interwar buildings, postwar walk ups and recent developments along the foreshore. Around two thirds of residents rent, supply is tight and very little new construction is added in any year.
Rushcutters Bay property prices
The spread is remarkable for such a small suburb, from modest one bedroom apartments at the accessible end to harbour facing residences several times the price. Rents hold up strongly against those lower prices, which gives the smaller apartments a better return relative to cost than most of the eastern suburbs manage.
Borrowing in Rushcutters Bay
Two things come up here that rarely feature elsewhere. Loans at the smaller end, because a modest apartment produces a modest loan and not every lender or every product suits one. And the rental numbers, since the yields on the smaller apartments are strong enough that investors take this suburb seriously.
Rushcutters Bay is one of the suburbs we cover across Sydney, and the one with the widest price range in the smallest area.
Buying at the
lower end?
A small loan is not just a smaller version of a big one. Some products and lenders suit it far better than others.
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.
Weighing up the
rental numbers?
What a lender counts and what the appraisal says are different figures. We will show you both before you commit.
Client stories
How we helped
Three real situations, and what actually happened in each one.
Rent did less than expected.
They were buying to let and had built their budget on the rental appraisal from the agent. Lenders count only a portion of expected rent, allowing for vacancy, management and costs, then assess the loan at a rate above the one actually charged. Levies came off on top. Once the real figures were in front of them, their own income was doing most of the work.
Their other place funded it.
They wanted an apartment here and assumed a fresh deposit had to be saved first. We reviewed the loan on the property they already owned, moved it to sharper pricing and released equity in the same application. That covered the deposit and the purchase costs, so their savings stayed put. Because the structure affects tax, they worked that side through with their accountant.
Same flat, a different figure.
The valuation came back below what they had agreed to pay, and their bank would only lend against its own number, leaving a gap to find in cash. Each lender uses its own panel of valuers, and on an older apartment there is more judgement involved than people assume. We took it to other lenders and one came back supporting the purchase price.
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 Rushcutters Bay 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 Rushcutters Bay plan
First home
Learn more
Next home
Learn more
Investment property
Learn more
Refinancing
Learn more
Construction loans
Learn more
Bridging loans
Learn more
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 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
Rushcutters Bay questions, answered
Why use a mortgage broker in Rushcutters Bay?
Because the range here is enormous and the right lender at one end of it is not the right lender at the other. A modest apartment and a harbourside residence are entirely different applications. We compare 35+ lenders at no cost to you and manage it through to settlement, under a legal obligation called the Best Interests Duty.
Is a small loan treated differently?
In some ways yes. Lenders set minimum loan amounts, and below a certain figure the choice narrows. Annual package fees that are worth paying on a large loan can outweigh the rate benefit on a small one. And the fixed costs of buying do not shrink with the price, so they take a proportionally larger bite. All of that is worth weighing rather than assuming the sharpest advertised rate wins.
Is an offset worth it on a smaller loan?
It depends on the balance you keep. An offset reduces the interest charged by the amount sitting in the account, and if a loan carries a higher rate or an annual fee to include the feature, that cost is fixed while the benefit depends entirely on your balance. On a smaller loan the sums are worth doing rather than taking the feature by default.
Why do the rental numbers look better here?
Because prices at the smaller apartment end are relatively modest while rents in this pocket hold up strongly, given the location and how little stock is added. That combination produces a better return against purchase price than most nearby suburbs. It is the reason investors take the smaller apartments here seriously and owner occupiers face competition for them.
How much of the rent will a lender count?
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, so the number a lender works from sits well below the appraisal.
Is the deposit different for an investment purchase?
It often is, because lenders commonly advance a smaller share of the value on an investment than on a home, which means a larger deposit for the same apartment. The rate usually differs too. Both are worth establishing before you set a budget rather than assuming home loan figures carry across.
Are older walk up blocks a problem?
Age is rarely the issue on its own. What matters is the condition of the building, the internal size of the apartment, whether there is a lift where the building is tall enough to warrant one, and how well the scheme is funded. It is the specifics rather than the era that shape what a lender will do.
Does the size of the apartment matter?
It does. Lenders set expectations around internal living area, measured excluding balconies and parking, and below a certain point the field narrows and those still lending often advance less. At the accessible end of this suburb that comes up regularly, so the floor plan in the contract is worth checking early.
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, and in a newer foreshore building they can be considerable. Either way they reduce your borrowing capacity for as long as you own the apartment.
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 the scheme is in dispute. In a waterfront building, the facade and anything exposed to salt air are the expensive items. Your solicitor reads it with you before you commit.
What happens if the valuation comes in under the price?
The lender advances against its valuation rather than the price you agreed, so the difference is covered in cash at settlement. On an older apartment there is more judgement in that figure than people expect, and a different lender using a different panel can reach a different number. It is worth acting quickly if a shortfall appears.
How much deposit will I need?
Twenty per cent avoids lenders mortgage insurance, and at the smaller apartment end here that is a genuinely reachable figure. Many buyers proceed with five or ten per cent and pay the insurance instead. Some occupations qualify for a waiver, and if you already own, equity generally does the job in place of cash.
What is lenders mortgage insurance?
A charge levied once, when borrowing climbs past eighty per cent of the property value, insuring the lender rather than you. Most borrowers add it to the loan instead of finding the cash. Four things sidestep it: a deposit of twenty per cent, an occupational waiver at certain lenders, a family guarantee, or the Australian Government 5% Deposit Scheme if you qualify.
Can I use the 5% Deposit Scheme here?
At the smaller apartment end it genuinely can, since prices there sit under the scheme cap more often than anywhere else in the eastern suburbs. 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 to a home you will live in.
How does a guarantor loan work?
A relative offers a portion of the equity in their own property as security sitting behind your loan. No money moves between you and none of your repayments become theirs. The pledge is normally limited to a set figure rather than the whole property, and it can be lifted once your loan has fallen far enough against the value of what you bought.
Can I use equity in another property to buy here?
Yes, and most buyers who already own take exactly that route. Equity drawn from the property you hold covers the deposit and the purchase costs, leaving your cash savings untouched. You finish with two loans, each tied to its own property, which is how they should stay. Have your accountant look over the arrangement before it is set up.
How long does pre-approval last?
Around ninety days as a rule, renewable with updated payslips and statements. Given how tight supply is here and how often properties go to auction, having it in place before you start looking rather than after you find something is what makes the difference.
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 marginally sharper rate.
Should an investment loan be interest only?
It appears far more on investment lending than on a home, because the repayment is lower while the balance stays where it is, and the debt is unchanged when the period ends. Principal and interest reduces what you owe and costs less overall. There are tax consequences either way, so that decision belongs with your accountant.
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. On a smaller loan it is worth checking whether an annual package fee is still earning its keep, since that can matter more than the headline rate does.
What does refinancing cost?
Generally 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 incoming lender may charge settlement or valuation fees, though many waive them. On a smaller balance those fixed costs matter proportionally more, so the sums need doing properly.
Does the loan term reset when I refinance?
Yes, by default, since lenders write thirty fresh years unless somebody objects. Your repayment eases while years of interest quietly reappear, undoing the ground you have already covered. Ask for the term you have left instead. It is never offered, so raising it falls to you each time you refinance.
Should I keep the apartment and rent it out when I move on?
Worth pricing against selling rather than deciding on instinct. Given how the rental numbers work here, holding is more often viable than in neighbouring suburbs. The questions are whether your income supports both loans once part of the rent counts and whether equity can be released without a sale. The tax position changes, so speak with your accountant.
The apartment is small or the building is older. Does that matter?
It can, and a general answer is no use here. How a lender treats a compact apartment, a walk up block, a building without a lift or a scheme with limited funds behind it all differ between lenders and change over time. Send us the address before you make an offer and we will check it across the panel.
Do we have to meet in person?
Not unless you would prefer it. The entire process runs over phone or video, with documents shared and signed electronically, and most of our clients never sit across a desk from us. If meeting face to face suits you better, we come to you, weekday evenings and weekends included.
Should I use my bank or a mortgage broker?
A bank offers its own loans under its own rules, including a minimum loan size and a minimum apartment size it will not mention until you apply. At the accessible end of this suburb, both come up. We compare 35+ lenders first, at $0 cost to you.
Your Rushcutters Bay mortgage broker
Your home loan.
Made simple.
Free check. No pressure. 35+ lenders compared at $0 cost to you.
Rushcutters Bay sits on the harbour between the city fringe and the eastern suburbs. Elizabeth Bay and Potts Point are west along the ridge, with Woolloomooloo beyond and Darlinghurst south west. Moore Park and Surry Hills lie south, and the city runs west through Martin Place, Circular Quay and Wynyard, with Town Hall World Square further down and Chinatown beyond. We cover all of them, so if your search shifts a suburb or two, you are not starting from scratch.