Paddington Mortgage Broker Living in Your Area
We are Mortgage Broking experts based in Sydneys Eastern suburbs and we are here to help you every step of the way on your home buying journey. We will assist with reviewing your borrowing capacity to letting you know how much deposit you will need to buy that dream home. We will take the stress out of the whole situation and can also provide obligation free RP Data property reports on any properties you might be keen on. Read our Home Buying guide below
- Streamlined application processes
- Ongoing support for the life of your loan
- Dedicated customer support
- Responsive customer service
- Clear communication about rates and fees
Table of Contents
Discover Paddington: A Coastal Gem for Homebuyers
Nestled just a few kilometres from Sydney’s CBD, Paddington is a highly sought-after suburb that perfectly blends historic charm with contemporary living. Known for its elegant Victorian terraces, vibrant shopping strips, and tree-lined streets, Paddington offers a lifestyle that appeals to professionals, families, and investors alike.
Residents enjoy a thriving café culture, renowned art galleries, weekend markets, and the iconic Oxford Street, making every day feel like a lifestyle upgrade. Whether you’re a first-time buyer, seasoned investor, or looking to refinance, owning property in Paddington positions you in one of Sydney’s most liveable and desirable neighbourhoods.
Paddington at a Glance
Land Area:
Approx. 1.6 sq. km with 6 parks in the area and proximity to Centennial Park
Lifestyle:
A vibrant part of Sydney with many cafes and busy nightlife but also walking distance to the Sydney CBD
Distance to the Sydney CBD
2.7km
Real Estate Snapshot:
Median House Price:
$3,500,000 (Dec 2024).
Median Unit Price:
$1,025,000 (Dec 2024).
Rental Yields:
Houses – 2.5% Units – 4.2%.
Average Days on Market:
35 days for houses and units.
Household Type:
47.7% childless couples; 39.8% couples with children.
Mortgage Considerations for Paddington Properties
Buying a property in Paddington may require a tailored mortgage strategy due to higher-than-average property prices. Homebuyers should consider the below:
Fixed vs. Variable Interest Rates
Evaluate the stability of fixed rates against the potential cost benefits of variable loans.
Loan-to-Value Ratio (LVR) Requirements
Higher-value properties may demand larger deposits.
Lender Options
Consider working with lenders who specialize in high-value coastal properties to secure competitive rates.
Why Paddington is a Real Estate Hotspot
📍 1. Prime Location
Just 3 km from Sydney’s CBD, Paddington offers unbeatable convenience for professionals and city commuters.
Excellent connectivity via public transport, plus easy access to beaches, Centennial Park, and the Eastern Suburbs.
🏡 2. Historic Charm with Modern Living
Iconic for its Victorian terrace houses, tree-lined streets, and heritage character.
Carefully preserved architecture appeals to buyers looking for homes with personality and long-term value.
🛍️ 3. Vibrant Lifestyle & Culture
Home to boutique shopping on Oxford Street, high-end dining, art galleries, and weekend markets.
A hub for culture lovers, professionals, and creatives who value quality of life as much as property performance.
💹 4. Consistent Capital Growth
Long-term capital growth rates remain strong due to limited land supply and ongoing demand.
Blue-chip suburb with proven resilience in market downturns, making it a favourite among investors and high-net-worth individuals.
📈 5. Strong Demand and Low Turnover
Paddington properties are tightly held, with low vacancy rates and strong buyer competition.
High rental demand from affluent tenants and professionals means investors enjoy stable income and high-quality occupants.
🏫 6. Access to Prestigious Schools
Proximity to elite private and public schools enhances appeal to families.
Nearby institutions like SCEGGS Darlinghurst, Sydney Grammar, and Ascham School influence purchasing decisions.
🌳 7. Green Spaces Amid Urban Life
Close to Centennial Parklands, Trumper Park, and Paddington Reservoir Gardens, offering rare green relief in an inner-city setting.
🛠️ 8. Renovation & Upside Potential
Many terraces offer scope for value-adding renovations, making them attractive for both live-in owners and renovators.
Market Activity:
1. 201 Houses and 75 units were sold in the past 12 months.
2. New property listings reached 165 for houses and 56 for units in Dec 2024.
Growth Potential:
The median house value increased by 9.4% and Units by 14.88% n 2024, reflecting a strong upward trend.
Affordability:
Houses in the lower quartile start at $2,490,000, while units in the same range are priced around $750,000.
With its idyllic surroundings and thriving community, Paddington remains a popular suburb for those looking to be close to the city but still have that suburb life feel. Beach days are still a 10 minute drive away and Paddington also offers that great night life with many bars and small restaurants.
A Step-by-Step Guide for First Home Buyers in Paddington
Purchasing a home for the first time is an exciting life milestone, but it often comes with a mix of emotions from excitement to anxiety. Navigating the complexities of the property market can be challenging, with hurdles such as saving for a deposit, understanding mortgage eligibility, and handling the paperwork involved in the mortgage application process.
First-time buyers also face concerns about hidden costs, fluctuating interest rates, and the fear of making costly mistakes. However, with proper planning and expert guidance, these challenges become manageable
Government Support for First-Time Buyers
First Home Owner Grant (FHOG):
A one-time grant offered by various states and territories to eligible first-home buyers purchasing a newly built home or, in some regions, substantially renovated properties.
First Home Loan Deposit Scheme (FHLDS):
This federal program allows eligible first-home buyers to purchase a property with as little as a 5% deposit without needing to pay costly lender’s mortgage insurance (LMI).
Stamp Duty Concessions:
Depending on the state or territory, first-time buyers may qualify for partial or full exemptions on stamp duty, significantly reducing upfront costs.
Understanding these programs and their eligibility criteria is crucial for maximizing savings.
Key Steps for First-Time Buyers
Budgeting and Saving for a Deposit
The first step toward homeownership is saving a deposit, typically between 5% and 20% of the property’s purchase price. A larger deposit can increase borrowing power and reduce ongoing mortgage repayments. Consider setting up a dedicated savings account and using budgeting tools to track expenses and boost savings.
Assessing Home Loan Eligibility
Determining your borrowing capacity is essential. Lenders evaluate your income, expenses, and credit score to assess your eligibility. To strengthen your position:
1. Ask CBM Mortgages to check your credit report for any errors or outstanding debts
2. Reduce existing debts to improve your debt-to-income ratio
3. Avoid taking out new loans or credit cards close to your mortgage application.
Obtaining a Mortgage Pre-Approval
A mortgage pre-approval assesses and confirms how much you can borrow, giving you confidence when making offers. It also shows sellers that you are a serious buyer. Pre-approval is typically valid for three to six months, allowing you the time to find the right property
Researching and Choosing the Right Property
Identify your priorities, such as location, proximity to amenities, and property size. Work with a qualified real estate agent and inspect several properties to make an informed decision. CBM Mortgages can provide you property profile reports for any properties you may be interested in.
Understanding Loan Options and Costs
Different home loans offer varying features and interest rates. Common options include fixed-rate and variable-rate mortgages. We will compare lenders for you to find competitive interest rates, flexible repayment terms, and features such as offset accounts or redraw facilities
Managing Fees and Hidden Costs
Beyond the property price, account for additional expenses, including:
1. Stamp duty (if applicable)
2. Lender’s mortgage insurance (for deposits under 20%)
3. Conveyancing and legal fees
4. Building and pest inspections
Completing Settlement
Once your offer is accepted, your solicitor or conveyancer will manage the settlement process. This involves transferring ownership and ensuring all legal documents are in order. You can also prepare for the final inspection to confirm the property is in the agreed-upon condition. By following these steps and leveraging available government incentives, we can assist first-time buyers in navigating the home-buying journey with confidence
Understanding the Different Mortgage Options
Fixed-Rate Mortgages
A fixed-rate mortgage locks in your interest rate for a predetermined term, typically between one and five years. This option provides certainty and stability in your monthly repayments. It is ideal for borrowers who prioritize stability and want to avoid the risk of rising interest rates. It suits those with fixed budgets and financial commitments.
Split Loan or Combination Loans
A split loan combines the benefits of fixed and variable rates, allowing you to divide your mortgage into two portions. This is ideal for borrowers looking to mitigate risk while still having exposure to changing market conditions. It’s a good option for those seeking partial predictability with some potential savings.
Interest-Only Loans
Interest-only loans allow you to pay only the interest for a set period, typically up to five years. The principal remains unchanged during this period. This is ideal for investors and buyers expecting significant future income increases or those looking to manage cash flow temporarily. However, careful planning is essential to avoid financial strain when repayments increase.
Refinancing Your Mortgage for Better Terms
The Refinancing Process
Review Your Current Loan
Start by analyzing your existing mortgage. Identify the current interest rate, loan term, monthly payments, and any applicable fees for early repayment.
Compare New Loan Offers
We can shop around for competitive rates and loan products. Use online comparison tools and consult with a mortgage broker to find options that suit your needs.
Check Your Credit Score
A strong credit score improves your chances of securing better terms. Request a copy of your credit report and resolve any discrepancies.
Calculate Potential Savings
Use a mortgage calculator to estimate how much you can save by refinancing. Include all costs, such as application fees, lender’s mortgage insurance (LMI), and exit fees.
Apply for the New Loan
Gather necessary documentation, including proof of income, property valuation, and your current mortgage details. We then submit your application to your chosen lender.
Settlement and Closing
Once approved, your new lender will pay off the old mortgage, and your new loan terms will take effect.
Investment Property Loans and Opportunities
Australia’s dynamic property market offers lucrative opportunities for investors looking to build wealth through real estate. Investment property loans differ from standard owner-occupied home loans in terms of structure, interest rates, and eligibility criteria. Understanding these differences and leveraging the right strategies can maximize your returns and position you for long-term success.
Key Features of Investment Property Loans
Higher Interest Rates
Investment property loans typically come with higher interest rates compared to owner-occupied loans. This reflects the increased risk lenders associate with investment properties, as repayments often depend on rental income.
Loan-to-Value Ratio (LVR) Limits
Lenders may impose stricter LVR limits for investment loans. Generally, an 80% LVR is standard, meaning you would need at least a 20% deposit. However, higher LVRs may be possible with lenders mortgage insurance (LMI).
Interest-Only Loan Options
Many investors opt for interest-only loans, where repayments cover only the interest for a set period, typically 1 to 5 years. This can improve cash flow, but it does not reduce the principal balance.
Benefits of Investment Property Loans
Potential Tax Deductions
Expenses related to investment properties may be tax-deductible. These include interest on your loan, property management fees, repairs, and depreciation.
Capital Growth Potential
Australian real estate has historically delivered strong capital growth, making property investment a valuable long-term strategy. Choosing high-demand locations increases the likelihood of appreciating property values.
Rental Income
Rental income can offset loan repayments and other property-related expenses. A property with a high rental yield provides better cash flow management.
Mortgage Tools and Calculators
Loan Repayment Calculator
The loan repayment calculator is one of the most commonly used tools by homebuyers and property investors. It provides an estimate of your monthly or fortnightly repayments based on the loan amount, interest rate, and loan term. To find out your loan repayments when buying in Paddington, click here for our repayment calculators.
Stamp Duty Calculator
Stamp duty is a significant cost associated with property purchases in Australia. It is important to understand this fee when purchasing property in Paddington. To find out your this cost, click here for our stamp duty calculators.
Borrowing Power Calculator
Your borrowing power determines how much you can borrow based on your income, expenses, and existing debts. A borrowing power calculator estimates the maximum loan amount a lender may approve. To find out your borrowing capacity for buying property in Paddington, click here for our borrowing capacity calculators.
Your Perfect Mortgage Solution Awaits with CBM Mortgages
With our vast industry experience and deep network of trusted lenders, we ensure you benefit from the most favorable rates and terms available. Our comprehensive approach combines expert insights, innovative tools, and a seamless, client-focused process prioritising clarity, confidence, and peace of mind. Every question is answered, every step is explained, and every decision is made with your best interest.in mind.
Now is the perfect time to turn your homeownership dreams into reality. Don’t leave your future to chance. Speak with our mortgage professionals today and discover how CBM Mortgages can simplify your journey, save you money, and secure your financial goals.