First time home buyers more likely to buy in outer suburbs, says NAB

houses-in-regional-australia close to water

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 8 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

    Details
  • Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    3.74% p.a.variable for 12 months and then 4.23% p.a. variable
    4.22% p.a.

    Already includes July RBA rate increase. No monthly or ongoing fees. loans.com.au has some of the fastest settlement times on the market. They can meet 30-day settlement timeline so you can start saving thousands, as soon as possible! Mozo award-winning online lender, friendly and local Australian based team.

    Details
  • First Home Buyer Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.64% p.a. variable
    3.67% 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.

    Details
  • Variable Home Loan

    <80% LVR, Owner Occupier, Interest Only

    interest rate
    comparison rate
    Initial monthly repayment
    4.74% p.a. variable
    4.19% p.a.

    Fast online application with no fees. Free extra repayments and redraw facility. Min 20% deposit.

    Details

* 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, loan amount and term entered. 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.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.