Six in ten Canterbury homes are apartments and nearly half are rented, many of them in newer buildings along Canterbury Road and nearby streets.
At around 80 per cent of the expected rent, from a rental appraisal or lease, to allow for vacancy and costs. That shaded rent plus your income sets the borrowing figure.
In newer Canterbury Road buildings, lenders also look at their limit in the building, the unit’s size and how many units are investor-owned.
Apartments are just over six in ten homes here (62.8%, against 21.7% statewide). Lenders measure internal living area, not the advertised size, so check the floor plan on the contract before the bank does. Just under half of the homes in Canterbury are rented, well above the state average. The suburb suits buyers weighing rentvesting: renting where you live and buying where the numbers work.
Separate housesTownhouses and semisApartments
apartments NSW 21.7%
separate houses NSW 65.6%
terraces and semis NSW 11.7%
rented NSW 32.6%
with a mortgage NSW 32.5%
private dwellings
Source: ABS Census 2021, Suburbs and Localities (SAL10796).
Will the rent cover it?
The first question every Sydney investor asks, repayments against rental income, the way a lender sees it.
A gap isn’t a dealbreaker, negative gearing, interest-only periods and offset structure change the cash-flow picture. That’s the conversation.
Estimates only, rates, vacancy, costs and tax change the real picture. Not credit or tax advice.
Confirm your numbers.
Charles and the team recently assisted us with a refinance of our investment property. Recommend Charles and the team to all
Charles Touma from Links Property Finance was a great help with buying my first home. I had plenty of questions and he took the time to explain things clearly without making me feel rushed. He kept me updated throughout and made the process much less stressful. Really appreciated his patience and would happily recommend him to other first home buyers.
Had a great experience with Charles. He made the home loan process straightforward, was always easy to communicate with, and really knew his stuff. Would definitely recommend Charles and the team!
When you buy to rent out, the lender counts the expected rent as income, but usually not all of it. A share is set aside for vacancies, management and costs, so only part of the rent adds to your borrowing power.
The lender also assesses the new loan at a buffer above the actual rate, alongside your existing debts and living expenses.
The rent estimate normally comes from the valuer or an appraisal from a local agent. With many similar apartments nearby it is usually straightforward to support, but it should be weighed against the levies, rates and insurance you will pay before you commit. Estimate the cost of owning
Charles Touma, Mortgage Broker.
Canterbury lies about ten and a half kilometres south-west of the city in the City of Canterbury-Bankstown. The former City of Canterbury took its name from the suburb, though its administrative centre was in neighbouring Campsie.
Canterbury Road runs through the suburb and is its only road crossing of the Cooks River, whose banks are lined with parkland, including Canterbury Park Racecourse and Tasker Park, with its pool and ice rink.
Interest-only repayments keep the monthly cost lower for a set period, often up to five years for an investment loan, after which the loan reverts to principal and interest over the remaining term and the repayments rise.
Lenders assess whether you could afford those higher repayments, not just the interest-only ones.
A new apartment usually comes with a builder’s warranty period and lower early maintenance, while an established one has a strata history you can read and a rent you can check.
If you buy off the plan, the lender values it close to settlement, and that value can differ from the price you agreed years earlier.
The Australian Government 5% Deposit Scheme and the New South Wales first home buyer duty concessions are for buyers who will live in the property.
An investment purchase does not qualify, and buying one first can affect whether you qualify for first home buyer benefits later.
If a first home to live in is also on your list, check the current criteria before you buy an investment, so the order of purchases does not cost you a concession you would otherwise have had. First home buyer schemes in NSW.
Three kinds of Canterbury investment, and what each means for the loan.
The groundwork that keeps an investment loan straightforward.
Usually not all of it: most lenders count a share of the expected rent and set the rest aside for vacancies and costs. The share varies by lender and makes a real difference to how much you can borrow for an investment.
Not always, but it often helps. Many lenders price investment loans more keenly at lower loan-to-value ratios, and lenders mortgage insurance usually applies above 80 per cent. A 20 per cent deposit plus buying costs is a common starting point for investors, though some lenders go higher.
It depends on your plans. Interest-only lowers repayments for a set period, which can help cash flow, but the balance does not fall and repayments rise when the period ends.
Lenders assess whether you could afford the higher repayments later, so it is worth comparing both options over the full term.
Often, yes. A lender can release equity from your home, subject to its valuation and your borrowing capacity, and that money can fund the deposit and costs of the investment.
How the loans are structured matters, including whether the two properties are secured separately, so it pays to get that right from the start.
You can, but check how it affects first home benefits. The 5% Deposit Scheme and the New South Wales first home buyer duty concessions are for owner-occupiers, and owning any property first can change your eligibility later. Read the current criteria before you decide the order.
It can. A valuer compares it with recent sales of similar apartments, and where there are many new buildings, resale prices can differ from original off-the-plan prices. For an off-the-plan purchase, the valuation happens close to settlement, so the loan is based on the value at that time.
One free call covers what you could borrow in Canterbury, the lenders that suit the property you want and the order to do things in.
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General information only, not credit or financial advice. Lender policies and government scheme criteria differ and change over time. All lending is subject to individual assessment and approval.
