Sydney real estate: Mortgage payments every month for every suburb

Monthly mortgage payments in Sydney have risen by more than $2500 over the past year. See what it now costs to live in every suburb and how your mortgage compares to others.

A house bought at Sydney’s $1.3m median house price now takes an extra $1900 a month to pay off than it did in April last year, as homeowners face the worst housing affordability crisis this century.

And, in more than 230 suburbs, monthly repayments have risen by more than $2500.

Experts warn this week’s move by the Reserve Bank to raise interest rates again could “tip the scales” and set off a series of forced sales.

Exclusive PropTrack research measuring both interest rates and annual home price increases showed the mortgage burden on new buyers has exploded since early 2022.

Areas where average repayments climbed $2500-$3500 included Harrington Park and Abbotsbury in the southwest and northwest suburbs Marsfield, Carlingford, Eastwood and Castle Hill.

RateCity research director Sally Tindall said rate rises were blowing a hole in family budgets. Picture: Tim Hunter.

Repayments for new buyers in these areas could rise a further $190-$300 per month if the Reserve Bank lifts the cash rate another 0.25 per cent this year. Financial markets are predicting at least that amount.

The data assumed a standard 80 per cent loan, 30-year loan term and an interest rate at the new market average.

PropTrack economist Angus Moore said the burden of rate rises would be too much for many buyers.

“Two key impacts are that borrowing power has decreased significantly, and the number of first home buyers has dropped dramatically,” he said.

It comes as Real Estate Institute of Australia data showed national housing affordability was now the worst on record since September 2008, when the country was in the grip of the global financial crisis.

NSW, Victoria and South Australia had the worst affordability result this century, according to the modelling of price data and average incomes.

REI Australia president Hayden Groves said declining housing affordability was tanking first homebuyer activity.

He noted that the number of (national) first homebuyers decreased to 21,150 in the March quarter, a 17.9 per cent drop from the previous quarter and a 27 per cent drop annually.

SQM Research director Louis Christopher said “risks” for the housing market were rising.

Many who bought during the pandemic housing boom of 2020-2022 are already forking out more in repayments than they were deemed able to afford when their loans were approved, Mr Christopher said.

Some of these owners would have already cut down their expenditure and raided their savings to cope with previous rate rises, he added.

“Now their home is on the line. For some, their bank will be quietly telling them to sell,” Mr Christopher said.

Castle Hill house buyers will need to fork out more than $3000 more in monthly repayments than they did last year.

Rate City director of research Sally Tindall said those who borrowed at their maximum capacity would be in serious trouble.

Rate City analysis showed a single purchaser on an average wage ($90,000 a year) who maxed out their borrowing capacity in 2021 would need to spend 71 per cent of their after-tax earnings on repayments after the eleventh rate hike announced last month.

“We won’t see the full impact of the latest hike this week until a few months, but it’s obvious that many mortgage holders were already struggling long before this week’s rise,” Ms Tindall said.

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A family earning the average dual income who borrowed at capacity two years ago would shell out 60 per cent of their post-tax income on loan payments, according to Rate City.

This left them with an estimated $125 a day to pay for essentials beyond the mortgage.

Canstar’s editor-at-large Effie Zahos said borrowers need to get creative.

“There is only such much you can cut back and only so much in the toolbox,” she said.

“You either spend less or earn more but there are only so many side hustles. Can you rent a bedroom? Have you looked for better deals on utilities? Maybe you could rent it out and move home, or somewhere cheaper.”

Originally published as Sydney real estate: Mortgage payments every month for every suburb