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

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
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
  • 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
  • 100% full offset account
  • Extra repayments + redraw services
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
NO UPFRONT OR ONGOING FEES

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
NO UPFRONT OR ONGOING FEES

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees

Rates correct as of November 27, 2021. View disclaimer.


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Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

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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 is passionate about breaking down complex financial topics for the everyday consumer.

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