Ultimo mortgage broker
Ultimo mortgage broker
A mortgage broker
who knows Ultimo.
The highest rental yields close to the city, produced by a tenant market that comes from almost one source, which cuts both ways. We compare 35+ lenders and it costs you nothing.
35+
Lenders
10+
Years experience
1,000+
Clients helped
$0
Cost to you
About Ultimo
What the 2007 market actually looks like
History of Ultimo
Named for the Ultimo Estate that covered the peninsula, and built out as a working district of wool stores, the Powerhouse generating station and the technical college that became TAFE. The university arrived on the old technical college land, and the wool stores and warehouses were turned into apartments through the eighties and nineties.
Ultimo property market
Around three quarters strata, so apartments in almost every direction, from converted wool stores through to purpose built student accommodation and newer towers. The university and the technical college sit at the centre of the suburb, and the predominant age group is in their twenties. Houses barely feature.
Ultimo property prices
Apartments sit well below most of the inner city and the yields that come with them are among the strongest anywhere near the CBD. That is the headline. The population here fell by roughly a sixth between the last two censuses, which is the other half of the picture and the part that rarely appears in a listing.
Borrowing in Ultimo
Investors dominate, and the numbers deserve more scrutiny than usual. High yield is not a free lunch. It reflects a tenant market drawn almost entirely from one source, and lenders count only a portion of expected rent in any case. What the property actually is, from a standard apartment to student accommodation, matters just as much.
Ultimo is one of the suburbs we cover across Sydney, and the one with the strongest yields and the narrowest tenant base.
Buying here
as an investment?
The yield looks strong and the risk sits alongside it. We will show you what a lender actually counts.
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.
Is it an apartment or
student accommodation?
They look similar in a listing and lenders treat them nothing alike. Send us the address before you offer.
Client stories
How we helped
Three real situations, and what actually happened in each one.
The yield was not the return.
They had built their budget on the rental appraisal and the yield figure attached to the listing. Lenders count only a portion of expected rent, allowing for vacancy, management and costs, then assess the loan at a rate above the one you actually pay, with strata levies coming off on top. Once the real figures were in front of them, their own income was doing most of the work.
One development, one limit.
They had approval and found the apartment they wanted, then their lender declined for a reason that had nothing to do with them. It had already lent as much as it was prepared to inside that particular building. Their income and deposit were never in question. We moved the application to a lender with no exposure there and it settled on the original date.
Equity covered the deposit.
They wanted an investment property and assumed a second deposit had to be saved first. We reviewed the loan on the home they already owned, moved it to sharper pricing and released equity in the same application. That covered the deposit and the purchase costs, so nothing came out of savings. Because structure affects tax, they worked that side through with their accountant.
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 Ultimo 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 Ultimo plan
First home
Learn more
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
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
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Home loans for
Dentists
Learn more
Home loans for
Accountants
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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
Ultimo questions, answered
Why use a mortgage broker in Ultimo?
Because most purchases here are investments, and the property type decides a great deal before your income is even considered. Student accommodation, compact apartments and large developments all sit differently with different lenders. We compare 35+ lenders at no cost to you and show you what each will actually count, under a legal obligation called the Best Interests Duty.
Why are the yields so high here?
Because rents hold up well against relatively modest purchase prices, driven by consistent demand from students and young renters close to the university. That is genuinely attractive. It is also worth understanding that a yield reflects the price the market is willing to pay for the asset, and a higher yield generally accompanies something the market prices more cautiously.
What is the risk in a high yield market?
Concentration. When most of the tenant demand comes from one source, anything that affects that source affects the whole market at once rather than gradually. The population here fell by roughly a sixth between the last two censuses. None of that makes the suburb a poor choice, and it does mean the numbers deserve stress testing rather than optimism.
Do lenders treat a high yield property more generously?
No, and this surprises people. Lenders discount expected rent for vacancy, management and running costs regardless of the headline yield, then assess the loan at a rate above the one you will pay. A stronger yield helps, and it does not change the method. Your own income still carries most of the assessment.
How much of the rent will a lender count?
A portion rather than all of it, with the discount differing between lenders. Strata levies then come off as an expense, and in a building with amenity those levies are substantial. The result is a counted figure well below the rental appraisal, which is why building a budget from the appraisal alone leads people astray.
Is student accommodation a different proposition?
Materially. Purpose built student accommodation usually carries a management arrangement and restrictions on who may occupy it, which makes it a very different security from an ordinary apartment. Many lenders will not fund one at all and those that do commonly advance far less. If a property is marketed on its student rental return, check what is actually being sold.
How do I tell the difference in a listing?
Look for references to a management agreement, an operator, guaranteed or pooled returns, restrictions on occupancy, or a building marketed under a student housing brand. Your solicitor will confirm it from the contract. It is worth asking the agent directly at the first inspection rather than discovering it after a valuation has been paid for.
Does the size of an apartment affect the loan?
It does. 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, meaning a larger deposit. Much of the stock here sits at the compact end, so it is worth checking the specific apartment.
Is the deposit different for an investment purchase?
Often, because lenders commonly advance a smaller share of the value on an investment than on a home. That means a larger deposit for the same property depending on how it will be used, and the rate is usually different too. Both are worth establishing before you set a budget rather than assuming home loan figures apply.
Should an investment loan be interest only?
It appears far more often on investment lending, 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 rather than with us.
Can I use equity in my home to buy here?
Yes, and it is the usual route. You release equity from a property you already own to cover the deposit and costs, so nothing comes out of savings. Two loans result, one secured by each property. Whether it proceeds depends on your income supporting both once part of the rent is counted.
Why keep the loans on separate securities?
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 either becomes a negotiation rather than a decision. Keeping each property securing its own loan also keeps the investment borrowing clearly identifiable, which your accountant will want at tax time.
Do strata levies affect what I can borrow?
Yes, because levies count as an ongoing commitment in the assessment. In a converted wool store or a building with amenity the levies can be substantial, and on an investment they come off the counted rent as well. That double effect is what makes two apartments at the same price produce quite different borrowing outcomes.
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 converted building the structure and services are the expensive items. Your solicitor reads it with you and flags anything worth pausing on before you commit.
Does it matter which building I buy in?
It can, and this is where a general answer is no use. How much a lender will advance, how comfortable it is with a particular development, how much it already holds there and how it treats compact apartments all differ between lenders and change over time. Send us the address before you make an offer and we will check the panel.
How much deposit will I need?
Twenty per cent avoids lenders mortgage insurance, and on an Ultimo apartment that is more reachable than most of the inner city. Buying with less is possible where you pay the insurance instead. Where the apartment is compact or the purchase is an investment, expect the requirement to be higher than you first calculate.
What is lenders mortgage insurance?
A premium paid once, applying where borrowing passes eighty per cent of the property value, and it protects the lender against loss rather than covering the borrower. It is normally added to the loan. Getting past it means a larger deposit, an occupational waiver at certain lenders, a family guarantee, or the Australian Government 5% Deposit Scheme if you are eligible.
Can a first home buyer use the 5% Deposit Scheme here?
Prices here more often sit under the scheme cap than elsewhere in the inner city, so it genuinely can work. 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, not to an investment, and the apartment still has to qualify.
How does a guarantor loan work?
A relative pledges part of the equity held in their own property as extra security behind your borrowing. No money moves and every repayment stays yours. The pledge is normally limited to a defined figure rather than the entire property, and it can be lifted once your loan has fallen far enough against what your place is worth.
How long does pre-approval last?
Ninety days is the usual window, and it renews on updated payslips and statements. What it gives you is a genuine borrowing figure to search against rather than an estimate. It does not extend to the particular apartment, which gets assessed separately once a contract exists, and in this suburb that second step carries real weight.
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. In a large building a valuer has plenty of comparable sales, which usually makes the figure predictable. A different lender uses a different panel and can reach a different number.
What reduces my borrowing capacity?
Credit card limits regardless of what you owe, existing loan repayments, ongoing commitments, study debts and dependants, and the levies on any property you already hold. Lenders also test whether you could repay at a rate well above the one you will pay. Clearing small facilities before applying often does more than a sharper rate would.
What is an offset account?
A transaction account linked to your loan, where the balance is deducted before interest is calculated. Money held there reduces the interest you pay while remaining fully accessible. On an investment loan the way offset is used can also matter for tax, which is a question worth putting to your accountant before you set it up.
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 an investment loan a modest rate difference compounds against the return. Confirm the incoming lender is comfortable with your building before starting, since a refinance can stall on the same question a purchase would.
What does refinancing cost?
Reckon on a few hundred dollars up to about a thousand. Your existing lender charges to discharge, the government charges to register the change, and the new lender sometimes adds settlement or valuation fees, though many waive them. Fixed rate break costs come first in the calculation, since they can decide the question on their own.
Do we have to meet in person?
Only if you would prefer to. Phone, Zoom or Teams covers everything, with paperwork shared and signed electronically, which suits investors who are not always in Sydney. If sitting down together works better for you, 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 how much it will advance on an investment, how much rent it counts and whether it will lend in your building at all. If any of those do not fit, that is the answer, and you usually find out after paying for a valuation. We compare 35+ lenders first, at $0 cost to you.
Your Ultimo mortgage broker
Your home loan.
Made simple.
Free check. No pressure. 35+ lenders compared at $0 cost to you.
Ultimo sits on the peninsula between Darling Harbour and Broadway. Haymarket and Chinatown are east and Chippendale south east, with Pyrmont north across the light rail. World Square and Town Hall sit in the city, with Wynyard and Martin Place beyond. Darlington and Redfern run south, Surry Hills east and Forest Lodge west. We cover all of them, so if your search shifts a suburb or two, you are not starting from scratch.