Recent price falls in Sydney, Melbourne, Brisbane, and Perth now mean some new city suburbs qualify for the First Home Loan Deposit Scheme (FHLDS), previously beyond the price caps.

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
5.99% p.a.
5.90% p.a.
Principal & Interest
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
Principal & Interest
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

The FHLDS allows first home buyers to get into the property market with a 5% deposit without having to pay lenders mortgage insurance (LMI).

One of the criteria for the scheme is for the property in question to be below state-specific price caps. 

Following price decreases since from March 2020 to January 2021, new suburbs have become eligible. 

However, all newly-eligible suburbs are for units, instead of houses (list below), with many in Melbourne's inner-ring including Docklands, Brunswick, St Kilda, South Melbourne, and more.

New eligible suburbs for the FHLDS

The 23 new suburbs eligible for the Scheme include 11 in Sydney, 10 in Melbourne, one in Brisbane, and one in Perth.

Suburb Median Unit Price January 2021 FHLDS Price Cap (Established) Price Drop from March 2020
Kellyville, NSW $675,780 $700,000 $71,882
Rouse Hill, NSW $638,755 $700,000 $88,146
Arncliffe, NSW $690,441 $700,000 $31,185
Hurstville, NSW $651,924 $700,000 $65,019
Ashfield, NSW $689,884 $700,000 $28,065
Strathfield, NSW $688,341 $700,000 $57,899
Wentworth Point, NSW $686,114 $700,000 $28,905
Gladesville, NSW $698,114 $700,000 $53,524
Ryde, NSW $678,719 $700,000 $36,181
Caringbah, NSW $679,373 $700,000 $38,053
Kirrawee, NSW $671,313 $700,000 $36,015
Balaclava, Vic $598,436 $600,000 $19,856
Brunswick, Vic $579,828 $600,000 $28,319
Docklands, Vic $575,517 $600,000 $40,679
South Melbourne, Vic $596,486 $600,000 $49,438
St Kilda East, Vic $579,514 $600,000 $34,169
Thornbury, Vic $584,288 $600,000 $27,416
Ferntree Gully, Vic $576,067 $600,000 $24,372
Beaconsfield Upper, Vic $573,562 $600,000 $28,142
Clayton, Vic $570,988 $600,000 $65,579
Oakleigh, Vic $575,210 $600,000 $53,324
South Brisbane, Qld $468,672 $475,000 $14,605
Munster, WA $397,318 $400,000 $49,036

Sources: CoreLogic, National Housing & Finance Investment Corporation, (only includes suburbs with 50< transactions in past 12 months)

CoreLogic's head of research Eliza Owen said these suburbs have been hit harder by international border closures and lack of international migration.

"The housing market has shown a robust performance, despite the shock of COVID-19 in 2020. But the pandemic has impacted pockets of the housing market, creating opportunities for buyers," she said.

"Recent housing value declines are particularly prominent in major cities like Sydney and Melbourne. These cities accounted for around 75% of international migration across the capital cities in 2018-19, meaning international border closures have created a particular demand shock.

"Unsurprisingly, six of these include unit values in the Melbourne inner region, where median values have declined an average [of] $33,313 between the onset of the pandemic and January."

Currently, the price caps are higher for newly-constructed homes, but Ms Owen says first home buyers prefer established properties, which feature lower price caps on the FHLDS.

"Established property has historically been favoured by first home buyers where benefits for both new and established property have been available. That was further demonstrated in the slower utilisation of the FHLDS when it was made available for only new property," she said.

Photo by Arun Clarke on Unsplash

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