Property Mortgage Update And Housing Affordability In NSW

Interest Rates and the big 4


The purple line in the chart below indic­ates that vari­able home loan rates mir­ror the stable RBA cash rate. There has been not much change over the last 6 months.

You will how­ever see that both kinds of fixed rate mort­gages have to a small extent increased over the last 3 months. Hav­ing said that, the two are still his­tor­ic­ally low.

Average interest rate comparison over the big 4 banks

Hous­ing Affordability

Every quarter we col­lect a hous­ing afford­ab­il­ity report that is com­mis­sioned by the REIA (Real Estate Insti­tute of Australia).

As a mort­gage broker we espe­cially like this report because it itemises the total num­ber of loans car­ried out in each state. nev­er­the­less,  we thought a out­line of the afford­ab­il­ity stat­ist­ics would be useful.

housing affordability report

There were a num­ber of other grip­ping find­ings that came out of this report:

1. In the last 12 months median fam­ily incomes enlarged in every state.
2. The nor­mal loan size enlarged by less than 5% in every state (except Queens­land, small decline).
3. The num­ber of loans to first home buy­ers expan­ded in every state except QLD & NSW where sub­stan­tial decreases occurred.
4. Aus­tralian Cap­ital Ter­rit­ory main­tains its self as being the cheaper state/territory in which to buy a home.

The present low interest rate envir­on­ment is without a doubt hav­ing a mean­ing­ful impact on hous­ing afford­ab­il­ity and numer­ous investors are get­ting in to the mar­ket as a result.

We have also dis­covered that many investors are fix­ing their interest rates on their loans in order to con­tinue these his­tor­ic­ally low rates.

This news will seem­ingly con­firm what you have thought. The medium cost of trans­fer stamp duty on a sub­urban prop­erty has gone through the roof in NSW.

We have had a good look at the State government’s stamp duty data and have been startled to find out that the medium res­id­en­tial prop­erty buyer is now cough­ing up $8,290 more in Stamp Duty than

they were in 2005. Check out the table we have made below.


Residential land transfer stamp duty (NSW only)

We were fight­ing to come up with a head­line for this email that cor­rectly pic­tured the degree of this tax bur­den. Here are some of our attempts:

Bracket Creep rip off“
NSW Govt cruels the real estate mar­ket”

“Call to ban prop­erty admis­sion fees”

“Decrease stamp duty on owner occu­pied homes”

“Time for the State Govt to reset Stamp Duty”

“Climb­ing home prices, a bon­anza for Govt coffers”

My largest con­cern is the lower­ing impact that this gov­ern­ment impost is pla­cing on our real estate mar­ket. Plainly, an extra $8,290 ($22,760 — $14,470) is going to delay a prop­erty buyer’s abil­ity to par­take in home ownership.

As Sydney prop­erty prices endure to climb, buy­ers are remain­ing pushed into tower­ing stamp duty brack­ets. There has not been a solid alter­a­tion to these bracket mile­stones for a very long time. I con­clude it is time for the gov­ern­ment to prom­ise an urgent review. We hope the media will lock on to this story. As we have observed in recent times, media pres­sure is very influ­en­tial in our democracy.

We are cer­tain the cash-strapped gov­ern­ment is delight in with the massive jump in rev­enue but this tax has now develop into a sub­stan­tial load on NSW home buy­ers. Time for a crit­ical review.

If you would like to talk about this or any other money man­age­ment mat­ters, please give me a call.


With expert­ise span­ning mort­gage lend­ing, prop­erty law, prop­erty invest­ment and bor­row­ing to invest within Self Man­aged Super­an­nu­ation, Aaron Sains­bury offers more than 25 years pro­fes­sional advis­ory expertise.

He is an enthu­si­astic sup­porter of fin­an­cial lit­er­acy, work­ing closely with cli­ents to help them gain and main­tain con­trol of their fin­an­cial future.

Aaron is thor­oughly com­mit­ted to build­ing lifelong rela­tion­ships with cli­ents based on the highest qual­ity ser­vice, advice and trust.

Con­tact Aaron dir­ect on 02 9818 8643 .

Smart­line Per­sonal Mort­gage Advisers
G5/1–15 Barr Street , Bal­main NSW 2041
Author­ised Rep­res­ent­at­ive No 298191
Smart­line Oper­a­tions Pty Ltd Cor­por­ate Author­ised Rep­res­ent­at­ive No 376868
Aon Hewitt Fin­an­cial Advice Ltd AFSL No 239183

seven hills real estate agent NSW
Cnr Federal Road Prospect Highway Seven Hills NSW 2147 Australia