First time home buyers more likely to buy in outer suburbs, says NAB
More first time home buyers are purchasing in outer suburbs, particularly in NSW and Victoria, new NAB data shows.
Even amidst some of the strictest lockdown restrictions first timers were involved, with a 77% lending surge of first time buyers compared to 2020, said NAB.
Andy Kerr, NAB executive home ownership, correlated the increase of people buying in outer suburbs to the growth of working from home in the last 18 months.
“This has fundamentally changed home buyer options with locations based on hybrid working, opening up suburbs that haven’t been available in the past with the daily commute,” he said.
Regional spots continue to draw some buyers however.
“While activity has slowed in regional areas in QLD and WA from the first few months of this year, in NSW and Victoria it’s clear the sea and tree change continue to be incredibly popular for first-time buyers,” said Kerr.
Switching back to city locations
Typically houses further away from metro areas tend to be cheaper, which is why many first time home buyers try to break into the market in those regions. Recently, the Australian housing market’s total worth broke $9 trillion, but that flood of money hasn’t stopped new home buyers going out to find their dream homes - be it in the suburbs or out in the country.
While we’ve seen an increase in city dwellers migrating to regional areas since the pandemic, between May and August this year, buying activity in metro areas has grown compared to regional, said NAB.
If you are considering taking advantage of the current record low mortgage rates, check out Mozo’s home loan comparison table below to find the right loan for you.
Home loan comparisons on Mozo - last updated 9 May 2024
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First Home Buyer Loan Special
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment5.90% p.a. variable5.93% p.a.A low variable rate loan for home buyers. No establishment or ongoing fees to pay. 100% offset account included. Allows for unlimited repayments, redraws and flexible repayment options.
CompareCompareFirst Home Buyer Loan Special
A low variable rate loan for home buyers. No establishment or ongoing fees to pay. 100% offset account included. Allows for unlimited repayments, redraws and flexible repayment options.
- interest rate
- 5.90% p.a. variable
- comparison rate
- 5.93% p.a.
- interest rate
- 5.90% p.a. variable
- comparison rate
- 5.93% p.a.
- upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - fees apply
- Offset account
- yes
- Maximum loan to value ratio
- 95.00%
- minimum borrowing amount
- -
- maximum borrowing amount
- $5,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- Special Offer Variable Rate available for a limited time.
Read our Mozo Review to learn more about the G&C Mutual Bank First Home Buyer Loan Special
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Basic Home Loan Special Offer
Owner Occupier, Principal & Interest, LVR 80-95%
interest rate
comparison rate
Initial monthly repayment6.69% p.a. variable6.70% p.a.CompareCompareBasic Home Loan Special Offer
- interest rate
- 6.69% p.a. variable
- comparison rate
- 6.70% p.a.
- interest rate
- 6.69% p.a. variable
- comparison rate
- 6.70% p.a.
- upfront fees
- $100
- Ongoing fees
- $0.00
- Discharge Fee
- $350.00
- Extra repayments
- Yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 95.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- Receive $2,000 refinance cashback, min loan size of $250,000 and LVR less than or equal to 80% (excludes refinances from Westpac Group), apply from 1st September 2023 and settle in 120 days.
Read our Mozo Review to learn more about the St.George Basic Home Loan Special Offer
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FHBG Special Offer Classic Home Loan
interest rate
comparison rate
Initial monthly repayment6.19% p.a. variable6.21% p.a.CompareCompareFHBG Special Offer Classic Home Loan
- interest rate
- 6.19% p.a. variable
- comparison rate
- 6.21% p.a.
- interest rate
- 6.19% p.a. variable
- comparison rate
- 6.21% p.a.
- upfront fees
- $195
- Ongoing fees
- $0.00
- Discharge Fee
- $530.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 95.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $800,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the QBANK FHBG Special Offer Classic Home Loan
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Basic Variable Home Loan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment5.94% p.a. variable5.99% p.a.CompareCompareBasic Variable Home Loan
- interest rate
- 5.94% p.a. variable
- comparison rate
- 5.99% p.a.
- interest rate
- 5.94% p.a. variable
- comparison rate
- 5.99% p.a.
- upfront fees
- $600
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 95.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly, Fortnightly, Weekly
- Special Offers
- -
Read our Mozo Review to learn more about the Community First Bank Basic Variable Home Loan
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First Home Buyer Variable Home Loan
Advantage Plus, Owner Occupier, Interest Only, LVR >90%
interest rate
comparison rate
Initial monthly repayment5.99% p.a. variable6.76% p.a.CompareCompareFirst Home Buyer Variable Home Loan
- interest rate
- 5.99% p.a. variable
- comparison rate
- 6.76% p.a.
- interest rate
- 5.99% p.a. variable
- comparison rate
- 6.76% p.a.
- upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $299.00
- Extra repayments
- yes - free up to $10,000 p.a.
- Redraw facility
- no
- Offset account
- yes
- Maximum loan to value ratio
- 95.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- -
- type of mortgage
- Variable
- Repayment types
- Interest Only
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Unity Bank First Home Buyer Variable Home Loan
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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