A mortgage broker can help you find the right home loan to purchase your dream property in Cairns.
With its tropical climate and proximity to the Great Barrier Reef, Cairns attracts tourists from all over the world. It’s also a great place to live, with the warm weather and relaxed vibe creating an enviable lifestyle.
But if you’re looking to buy a home in Cairns — be it your first home, your next home or an investment property — you might need the expert advice and local knowledge of a Cairns mortgage broker to help you get the financing you need.
Which brokers have offices in Cairns?
|Broker||Details||No. of Lenders|
Aussie Home Loans
Aussie is one of Australia's leading financial service providers, having won The Adviser’s Top Mortgage Broker award for the last 3 years. They charge no appointment fees and can meet at a time and place which suits you.
- Smartline Personal Mortgage Advisers
- Loan Select
- Choice Finance Cairns
- NQ Home Loans
- All Lending & Finance
- Inline Home Loans
- Smarter Mortgage Solutions
What are the main suburbs within Cairns?
Source: Google Maps
Located 10km south of the city, Edmonton was originally a separate town but is now a suburb of Cairns. It has been the site of several new housing developments in recent years as the population of far north Queensland continues to grow.
Edmonton has a population of 9,933 and a median weekly household income of $1,190. The two biggest demographic groups in this suburb are maturing couples and families (19.9%) and established couples and families (19.5%).
The median sale price for houses in Edmonton in 2015 is $335,000, while the median price for units is $185,000. House prices have an average annual growth of 3.78%, gross rental yield is 5.68% and the weekly median advertised rent is $370.
2. Clifton Beach
Located just over 20km from Cairns, Clifton Beach is the fourth beach as you drive north out of the Cairns city centre. It features an unspoilt beach with a stinger-resistant swimming enclosure, and it’s a short drive from the restaurants and resort facilities at nearby Palm Cove.
With a population of 2,979, Clifton Beach has a median weekly household income of $1,284. The two largest demographic groups in the suburb are established couples and families (21.7%) and older couples and families (19.3%).
The median sale price for houses in Clifton Beach is $540,000, with an average annual growth of 3.15% and a gross rental yield of 4.67%.
3. Edge Hill
One of the oldest suburbs in Cairns, Edge Hill is a leafy, sought-after location for home buyers. The suburb’s streets are lined with Federation and pre-war homes, and restaurants, cafes and boutique shopping options are in abundance.
Edge Hill’s population of 3,873 is dominated by those classified as maturing and established independents (16.7%) and older couples and families (15.8%). The median weekly income in Edge Hill is $1,165 per household.
The median house price in Edge Hill is $471,000, while the median unit price is $205,000. Houses have experienced quarterly growth of 2.54%, average annual growth of 4.47% and a gross rental yield of 4.61%.
Redlynch sits 10km northwest of the Cairns city centre and is located next to the Barron Gorge National Park.
Redlynch has a population of 8,645 and the two largest demographic groups in the suburb are established couples and families (29.4%) and maturing couples and families (20.7%). The median weekly household income in Redlynch is $1,735.
Redlynch has a median house price of $467,500 and a median unit price of $225,000. House prices have experienced average annual growth of 3.81% and gross rental yield of 4.97%.
Buying property in Cairns
Whether you’re looking to purchase your own home or an investment property in Cairns, you’ll need to take the following factors into account:
- Cyclones. Anyone thinking of purchasing in the tropics should be aware of the risks posed by tropical cyclones. These typically occur between November and April and can cause widespread damage.
- Flooding. Flash flooding is a risk in several Cairns suburbs. Heavy rainfall in the Tablelands can cause swollen creeks and rivers to carry large volumes of water down towards Cairns, so make sure to check flood maps and study past flood heights before purchasing.
- Mt Peter development. Located between Edmonton and Gordonvale to the south of the city, this housing development is expected to attract 40,000 people to the area in the next 30 years. The first houses in development are due for completion in April 2016.
- Rising property prices. In 2015, the median house price in Cairns topped $400,000 for the first time in history, surpassing its previous peak of almost $390,000 in 2008.
Suburb property prices in Cairns
From 2014 to 2015, the median sale prices for houses in Edmonton dropped 2.9% from $345,000 to $335,000.
Source: APM PriceFinder
The median house sale price in Clifton Beach has grown from $527,500 in 2013 to $540,000 in 2015.
Source: APM PriceFinder
From 2014 to 2015, the median sale price for houses in Edge Hill dropped from $485,000 to $475,000.
Source: APM PriceFinder
In the period from 2013 to 2015, the median sale prices for houses in Redlynch has increased from $420,000 to $467,500.
Source: APM PriceFinder
What will a typical mortgage cost in Cairns?
The median house price in Cairns is $408,000. If you were looking to take out a home loan to help you purchase a house at this price, you’d need a 20% deposit of $81,600, and you would have to borrow $326,400 to finance your purchase. Alternatively, if you find a lender that only requires a 10% deposit, you’d need to have $40,800 saved up in order to take out a loan.
In terms of units, the median price in Cairns sits at $225,000, so a 20% home loan deposit on a two-bedroom unit would equal $45,000 and leave you a borrowing amount of $180,000. A 10% deposit would require $22,500.
How is a mortgage broker paid?
Most mortgage brokers will generally help you find a home loan at no charge. Instead of requesting payment from you, they usually make money by receiving a commission from a lender. The commission usually comprises two parts: an upfront commission when the loan is taken out, and a recurring or trailing commission based on the outstanding loan amount each year.
However, if the borrower later decides to refinance their loan, the lender is able to take a clawback commission fee from the mortgage broker. This provides extra incentive for a mortgage broker to find you a good deal on a loan that meets your needs, as failing to do so will result in a loss of commission.
How does a mortgage broker work?
A mortgage broker’s job is to match borrowers up with a home loan that meets all their needs. Acting as a go-between, a broker will assess your financial situation and borrowing needs to determine exactly what you need in a home loan. Then, using an aggregator to access a range of lenders, a broker will recommend suitable mortgage products from those lenders and then negotiate on your behalf to get a loan with a competitive rate and the features you want.