Comparing a 6.00% 30-year fixed mortgage on an A$820,800 Sydney purchase

A

alba.oak

Homeowner
Choosing on the headline rate could become expensive if we move sooner than expected. I have a 6.00% quote over 30 years for a Sydney purchase around A$820,800, but the fees and loan-to-value band make it less straightforward than the initial figure suggested.

I plan to ask each lender for an itemised illustration, then compare repayments and charges over several realistic holding periods rather than assuming the loan lasts the full term. For a shorter stay, exit costs and early-repayment conditions may decide it; for a longer stay, the ongoing rate and fees carry more weight. How would others build that comparison, and how much value would you place on portability?
 
I’d compare total cash cost over the period you realistically expect to hold the loan, not automatically over 30 years. Include repayments, upfront and ongoing fees, and any known cost of leaving at that point. Run several possible move dates because a cheaper headline rate can lose its advantage once fees are spread across a shorter period.
 
One missing figure: is A$820,800 the purchase price or the amount being borrowed? The loan-to-value tier cannot be compared properly without the deposit and actual loan balance. I’d also ask each lender for the fees itemised rather than relying on one combined percentage.
 
Portability needs careful reading too. A loan being described as portable does not necessarily answer what happens if the next property costs more or less, or if the timing of sale and purchase does not line up. Ask the lender to explain those scenarios in writing, along with how early repayment would be treated.
 
I wouldn’t dismiss APR as quickly as that. It is still useful for eliminating obviously expensive offers before building a detailed spreadsheet. The danger with a custom holding-period calculation is that small assumptions about moving or refinancing can make whichever quote you prefer look best. Use APR for the first comparison, then test the finalists against realistic exit scenarios.
 
Thanks. A$820,800 is the property price, not necessarily the final loan amount; that will depend on the deposit, so I can see why my original comparison was incomplete. We also do not have a firm moving date, only a genuine possibility that we leave before the fixed period ends. I’m going back for an itemised quote and examples of what happens on a sale, refinance or attempted port.
 
Keep monthly affordability as a separate test from total cost. One offer may be cheaper overall yet leave too little room in the household budget. I’d model at least four paths: keep the loan, sell early, refinance, and move while trying to port it. For any path involving a new loan, make the future rate an adjustable assumption rather than quietly assuming today’s rate continues.
 
Also confirm that the written quote really fixes the rate for the full 30 years, rather than describing a 30-year loan term with a different fixed-rate period. That distinction changes the rate-reset risk completely. Once confirmed, put every quote into the same table: actual borrowing amount, LTV tier, rate, monthly repayment, all fees, early-exit treatment and portability conditions. Contract wording and lender practice can vary, so unresolved points are worth taking to an appropriately qualified Australian adviser or solicitor.
 
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