Almost every Sydney Olympic Park home is an apartment, and about two in three are rented.
Interest-only keeps repayments low and the deductible debt intact for a set period, often five years, at a higher rate; principal and interest repays the loan from day one.
When an interest-only period ends, repayments rise, so the plan for that date is set at the start.
Just over almost all homes in Sydney Olympic Park are apartments, more than three times the share across NSW. Here the building is assessed almost as closely as the borrower, from the strata report to the size of the complex.
Two thirds of the homes in Sydney Olympic Park are rented, about twice the state average. High rental demand here helps an investment loan, because lenders count part of the expected rent toward servicing.
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 (SAL13731).
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 me with the refinance of my investment property.
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 at Links Property Finance. He made the whole home loan process straightforward and easy to understand, kept me updated throughout and was always quick to answer any questions.
On an interest-only loan, repayments cover just the interest for a set period, commonly up to five years for investors, so the balance does not fall. Repayments are lower during that period, but the rate is usually higher than for principal and interest, and more interest is paid overall.
When the period ends, the loan switches to principal and interest over the remaining, shorter term, so repayments rise noticeably. Lenders assess your application on those higher repayments, not the interest-only ones.
Whether interest-only suits you, and any tax effects, are questions for your own situation and your accountant. Interest-only loans in detail
Charles Touma, Mortgage Broker.
Sydney Olympic Park lies about thirteen kilometres west of the city in the City of Parramatta. It hosts major sporting and cultural events, including the Sydney Royal Easter Show, alongside commercial buildings, apartments and extensive parklands.
It was once part of Lidcombe, and between 1989 and 2009 was known as Homebush Bay, before the waterfront residential area became Wentworth Point and the rest took its current name.
The land was part of the traditional country of the Wanngal clan. Early Europeans called the tidal wetlands the Flats, and in 1794 Thomas Laycock was granted land here that he named Home Bush.
From 1907 much of the area was resumed for the State Abattoirs, and the State Brickworks operated here too. The suburb had only a few dozen residents in 2011, but apartment development through the 2010s brought several thousand. Today almost every home is an apartment.
When a Sydney Olympic Park investor is comparing loans, Links compares a panel that includes Macquarie, ING, ANZ, Resimac and Westpac.
Example scenario (illustrative, not a real client): an owner-occupier in the inner west wants to buy an investment apartment in Sydney Olympic Park using equity in their own home.
Before applying, they compare interest-only and principal and interest repayments, check that servicing works on the higher repayments that follow the interest-only period, and ask their accountant about how to structure the loans.
At the end of the period, the loan usually converts to principal and interest over the remaining term. Because that term is shorter, repayments rise by more than many borrowers expect.
Some borrowers apply for another interest-only period, which requires a fresh assessment, and approval is not guaranteed. Planning for the switch from the start avoids surprises. Compare repayments.
Lenders look at the apartment’s size, the building and, for some, how concentrated apartments and investors are in the area. A few limit how much they lend in certain high-density postcodes.
Very small apartments can face tighter policies, so the internal area matters. Small apartment home loans.
Many investors use equity in their own home for the deposit and costs, often through a separate loan. Keeping the investment borrowing separate from your home loan makes the structure clearer.
How the loans are set up can matter for tax, so talk to your accountant before you proceed. Using equity to buy.
Three ways to repay an investment loan.
The checks that matter for an investment apartment.
An interest-only loan is one where repayments cover only the interest for a set period, commonly up to five years for investors, so the balance does not fall during that time.
Only in the short term: repayments are lower during the interest-only period, but the rate is usually higher and more interest is paid over the life of the loan.
The loan usually converts to principal and interest over the remaining term, so repayments rise. You can apply for another interest-only period, but it needs a fresh assessment.
Often around 80 per cent of the expected rent, to allow for vacancies and costs; the exact share varies by lender.
Yes, some do: certain lenders limit lending in particular high-density postcodes or buildings, others do not, so where you apply matters.
Often, yes, usually through a separate loan secured by your home. Talk to your accountant about how to structure it.
One free call covers what you could borrow in Sydney Olympic Park, the lenders that suit the property you want and the order to do things in.
Prefer a callback?Charles calls back within one business day. No documents needed yet.
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.
