Compare home loans in Sydney for December 2024

As Australia’s most populous and popular city, Sydney is a sought after location for workers, employers and investors. The housing market reflects its popularity, with property prices in Sydney being some of the highest in Australia. 

As you can imagine, high property values affect your chances of successfully applying for a home loan to purchase a property in the area. Larger than average home loans and hefty deposits are usually required when purchasing property in the city.    

Sydney is a large and densely populated city. The inner suburbs start from Sydney Cove - the world’s largest natural harbour - and overlook the world-famous Sydney Harbour Bridge and Sydney Opera House. 

Like most cities, the closer you get to the inner suburbs, the more expensive the real estate becomes, with the inner suburbs typically incorporating more high-rise apartments than the outer suburbs. Sydney’s eastern suburbs and north shore, including the northern beaches, are also known for having generally higher property prices than the outer suburbs. 

Sydney is known for its extensive financial, marketing and tourism industries that drive both the wealth and employment of the city. It is also a hub for foreign tourists and international businesses, such as banks and multinational corporations.

With so much demand and relatively little supply, Sydney’s housing market is often under intense pressure. 

However, inner Sydney lacks undeveloped land, so there’s little space left to build new houses and developments. Also, the large amount of historical and heritage-listed property in inner Sydney also prevents new property development on some land. 

This means there are typically more opportunities to develop on the edges of the city, to the point where some outer suburbs are experiencing excessive development. 

High-rises and multiple dwelling accommodations have become popular in Sydney, with this style of living being generally cheaper than many typical single-storey houses.

Sydney’s closest relative, Melbourne, also generally suffers from property shortages due to increased demand. Melbourne, like Sydney, is a hub for several national and multinational organisations and is an attractive location for job seekers. 

The cities of Adelaide, Brisbane and Canberra are generally experiencing a less serious supply and demand problem than Sydney and Melbourne, but still have rising property prices. 

If you are a first home buyer or on a limited income, getting a home loan in Sydney could be harder, in part due to high demand pushing up prices. Mortgage lenders may look carefully at your home loan application to make sure you can afford the repayments. Consider calculating your home loan repayments before you apply. 

The demand for Sydney housing may also limit the number of properties up for sale at any one time. You may have to search for longer to find a property that suits both your needs and your budget. Keep this in mind when you apply for home loan pre-approval. 

A mortgage broker in Sydney may be able to guide you through the mortgage application process. By searching for a mortgage broker in your area, you can benefit from local knowledge and expert advice to help you find and compare home loans, including exclusive special options that aren’t typically advertised. 

Sydney mortgage brokers can also manage the mortgage application process for you, and negotiate with the lender on your behalf to help you get a better deal – something that most Sydney home buyers will appreciate.  

You may also want to consider checking if you qualify for the First Home Owner Grant in New South Wales, dependent on how much you plan to spend on your property.