Suburbs where you can buy a house with a deposit of $100k or less

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on November 24, 2021 Fact Checked
Suburbs where you can buy a house with a deposit of $100k or less

New research from Aussie Home Loans reveals home buyers might need to compromise a bit on their suburb choice if they want to find value.

Aussie analysed 3,960 suburbs across Australia and crunched the numbers to find out where home buyers can find a house where a 10-20% deposit is $100,000 or less.

A 10% deposit implies a $1 million property value, while for a 20% it's $500,000.

While results were pretty skint with a 20% deposit, a 10% deposit opens up a lot more options. The most popular suburbs were:

  • New South Wales: Box Hill (10%: $61,150), and Wyee (20%: $83,000)
  • Victoria: Heidelberg West (10%: $75,000) and Dallas (20%: $100,000)
  • Queensland: Carina (10%: $75,050) and Acacia Ridge (20%: $90,500)
  • South Australia: Adelaide (10%: $70,525) and Ascot Park (20%: $96,200)
  • Western Australia: Scarborough (10%: $78,200) and Nollamara (20%: $79,000)
  • Tasmania: Kingston (10%: $63,050) and Glenorchy (20%: $96,000)
  • Northern Territory: Ludmilla (10%: $56,200) and Bakewell (20%: $93,200)
  • Australian Capital Territory: Phillip (10%: $56,650)

For units, the three most popular suburbs were: Melbourne (20%: $85,350) and Hawthorn (10%: $60,749.95) in Victoria, and Lakemba (20%: $76,500), south-west of Sydney.

The analysis was based on CoreLogic's median property price data.

According to Aussie CEO of Distribution, Brad Cramb, nearly one in five borrowers secured a home loan paying lenders mortgage insurance in the past 12 months.

"With rising property prices and recent changes to lending criteria from APRA creating some concerns around housing affordability, we wanted to show homebuyers that there are still opportunities to get into the property market if you expand your suburb search and adapt your thinking around how you might structure your home loan," Mr Cramb said.

"You don’t always need to have a 20% deposit to buy a home."

Debt to income levels soared over 2021, with more than one fifth of all home loans written in the June quarter to households borrowing more than six times their income.

This raised the attention of the prudential regulator - with APRA introducing a serviceability buffer bump in October, aimed to curb those borrowing at the margins.

It's estimated it will affect the average borrower's borrowing capacity by 5%.

"In a competitive market it’s important to do your homework, including considering where you might be willing to make compromises, researching suburbs where you could afford to buy a home in, and organising pre-approval," Mr Cramb said.

"Having pre-approval is also important, so when the right property comes up on the market, you can make an offer with confidence."


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Lender

Variable
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Variable
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AN EASY DIGITAL APPLICATION
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Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

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  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
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  • Extra repayments + redraw services
Variable
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NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
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NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

Variable Home Loan (Principal and Interest)

  • No upfront or ongoing fees
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  • Extra repayments + redraw services

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. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. 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 May 22, 2022. View disclaimer.


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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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