Sydney duplex mortgage: comparing a 5.72% ten-year fix

[loft.balanced]

The monthly payment has to leave enough room in my budget. That is the immediate constraint.

The purchase is a Sydney duplex at about A$714,400, and one offer is fixed at 5.72% for 10 years. Once fees and the applicable LTV band were included, the cheaper-looking headline offer was no longer obviously better. I’m trying to compare both loans over a realistic holding period rather than assume I will keep either one for the full decade.

Should I focus on APR, financing cost over that chosen period, or payments and fees combined? I also need to understand early-exit charges and whether portability would actually survive a move or a fresh loan-to-value assessment.

 

[eden.finch]

I’d compare total interest plus unavoidable fees over the period you realistically expect to keep the loan, not automatically all 10 years. Keep principal repayments separate, since they build equity rather than represent a financing cost. Then run a second comparison for monthly affordability. A slightly cheaper loan overall may still be unsuitable if its required payments leave too little room in the budget.

 

[timo.archer]

That approach is useful, but the missing figure is the actual loan amount or LTV. The A$714,400 purchase price alone doesn’t show which tier applies, and a fee has a different impact on a smaller loan.

I’d model at least two exit dates rather than assuming either a full ten years or an early refinance. For each, include fees and any early-repayment cost indicated in the terms. Also confirm what “portable” means in this specific offer—especially whether moving property could trigger a fresh affordability or LTV assessment.