Do you know what a two-bedroom property really costs?

How much deposit do you actually need?

You can purchase a two-bedroom property in Burwood with a 5% deposit through the Australian Government 5% Deposit Scheme. That means if you're buying at the current median, you'll need a genuine savings balance in the range of $50,000 to $60,000 to cover the deposit and settlement costs combined. The scheme removes the need for Lenders Mortgage Insurance, which would otherwise add thousands of dollars to your upfront costs.

This matters because two-bedroom properties in Burwood tend to sit in a price range that makes them accessible to first home buyers working with a moderate deposit. The property price cap for the scheme in New South Wales is $1,500,000 for capital city areas, so most two-bedroom units and townhouses in Burwood fall comfortably within that threshold.

Consider a buyer who has saved $55,000 over three years and is looking at a two-bedroom apartment near Burwood Road. The property is listed at the suburb median. Using the 5% Deposit Scheme, they need $50,000 for the deposit, leaving around $5,000 for settlement and adjustment costs. They avoid LMI, which would have added another $15,000 to $20,000 if they'd purchased with a 10% deposit outside the scheme. The application goes through a participating lender, and the loan structure includes a variable rate with an offset account.

What lenders look at when you apply

Lenders assess your borrowing capacity based on your income, existing debts, and living expenses. They use a servicing buffer to test whether you can still afford the loan if interest rates rise. For a two-bedroom property in Burwood, that calculation includes your salary, any rental income if you're planning to rent out a room, and your current commitments like car loans or credit card limits.

A stable employment history helps. If you've been in the same role for at least six months, most lenders will accept that. If you've recently changed jobs, some lenders will still proceed if you're in the same industry or on a similar salary. Self-employed buyers generally need two years of tax returns, though some lenders will assess one year if your accountant provides a letter confirming consistent income.

Your home loan application will also include a credit check. Lenders look at how you manage existing debt and whether you've missed payments in the past. Small lapses from years ago usually won't disqualify you, but recent defaults or missed credit card payments can delay approval or reduce how much you're able to borrow.

Stamp duty concessions in New South Wales

New South Wales offers a full stamp duty exemption on properties valued up to $800,000 and a sliding concession on properties between $800,001 and $1,000,000. This applies to both new and established homes. For a two-bedroom property in Burwood priced at the current median, you'll likely pay no stamp duty at all if the property falls within that first bracket.

The concession requires you to move into the property within 12 months of settlement and live there for at least 12 continuous months. If you're planning to rent out the second bedroom to a housemate, that's allowed under the rules as long as the property remains your principal place of residence.

Fixed or variable interest rates

A fixed interest rate locks in your repayments for a set period, usually between one and five years. That gives you certainty, which can be useful if you're budgeting carefully in the first few years of ownership. The downside is that fixed loans often come with restrictions. You may not be able to make extra repayments beyond a certain limit, and offset accounts are rarely available on fully fixed loans.

A variable interest rate moves with the market. Your repayments can go up or down depending on rate changes, but you usually get more flexibility. Most variable loans allow unlimited extra repayments and come with an offset account, which can reduce the interest you pay over time if you keep a balance in the linked transaction account.

Some buyers split their loan, fixing part of the balance and leaving the rest variable. That approach gives you a degree of rate protection while keeping access to features like offset and redraw. The split doesn't have to be 50-50. You can fix 30% and leave 70% variable, or any other combination that suits your circumstances.

What a two-bedroom property actually costs in Burwood

Two-bedroom properties in Burwood include a mix of older walk-up units, newer apartments close to Burwood Station, and occasional townhouses near the Burwood Park precinct. The older stock is often more affordable but may come with higher strata levies or fewer amenities. Newer builds closer to transport tend to be priced higher, but they often include secure parking and lower maintenance costs in the short term.

Strata levies vary widely. A two-bedroom apartment in a smaller block might have quarterly levies around $800 to $1,200, while a larger complex with a lift, gym, and concierge can exceed $2,000 per quarter. Lenders factor strata levies into your servicing calculation, so a higher levy reduces how much you can borrow.

Council rates in Burwood are generally in line with other inner-west suburbs. Budget around $400 to $500 per quarter for a standard two-bedroom unit. Water usage is charged separately if you have an individual meter, which most newer buildings do.

Using the First Home Super Saver Scheme

The First Home Super Saver Scheme lets you make voluntary contributions into your super fund and release up to $50,000 toward your deposit. Contributions are taxed at 15% rather than your marginal tax rate, which means you keep more of what you save if you're earning above the tax-free threshold.

You need to apply to the ATO for a determination before you can access the funds. The determination tells you how much you're eligible to release and how much tax will apply when the money is withdrawn. Most buyers obtain this determination before signing a contract, so they know exactly how much they'll have available at settlement.

The scheme works well if you've been making extra super contributions for at least a year. If you're only just starting to save, it may not make a material difference to your deposit size in the short term, but it's still worth considering if you're planning to buy within the next two to three years.

Pre-approval gives you confidence before you start looking

Pre-approval tells you how much you can borrow before you make an offer. It's not a guarantee, but it gives you a clear budget and shows agents and vendors that you're in a position to proceed. Most pre-approvals are valid for three to six months, depending on the lender.

You'll need to provide payslips, bank statements, and identification. The lender will also run a credit check and assess your living expenses. Once approved, you'll receive a letter stating your borrowing limit and the conditions that apply. Some lenders issue conditional approval, which means you'll need to provide a signed contract and a valuation before they release funds.

If you're looking at properties near the top of your budget, pre-approval helps you move quickly. In areas like Burwood, where two-bedroom properties close to the station can attract multiple offers, having your finance sorted in advance makes your offer more attractive to the vendor.

What happens after you make an offer

Once your offer is accepted, you'll sign a contract and pay a deposit, usually 0.25% of the purchase price, to the vendor's solicitor. The contract includes a cooling-off period, typically five business days, during which you can withdraw from the sale. If you do withdraw, you'll lose 0.25% of the purchase price as a penalty.

Your lender will order a valuation to confirm the property is worth what you're paying. If the valuation comes in lower than the purchase price, the lender may reduce the loan amount or ask you to make up the difference with additional savings. This doesn't happen often, but it's more common in a rising market or if the property has unusual features that limit its appeal.

Settlement usually occurs four to six weeks after exchange. Your solicitor will coordinate with the lender and the vendor's solicitor to transfer the funds and register the title in your name. You'll receive the keys on settlement day, and from that point, you're responsible for all costs including strata levies, council rates, and insurance.

Call one of our team or book an appointment at a time that works for you. We'll walk through your deposit, your borrowing capacity, and which home loan options suit what you're trying to do.

Frequently Asked Questions