Home loan costs: How much do you need to buy Australia’s most affordable suburbs?

Cartoon home loan costs house, representing Australia's most affordable suburbs

According to CoreLogic, property prices have risen by +8.3% in the last year – more than completely recovering their -7.5% fall in 2022. Now, between interest rate rises and prices, home loan affordability is top of mind for Aussie home buyers. 

But if we look at the numbers, how much money do you really need to buy in Australia’s cheapest suburbs?

Let’s break down the data from the CoreLogic Best of the Best 2023 report, based on property type and location. We’ll look at home loan deposit size requirements and what your monthly mortgage repayments could look like. 

Monthly repayments calculated using the current Mozo database average variable interest rate of 6.84% p.a. for an owner-occupied mortgage with LVR < 80% making P&I repayments over a 25-year term.

Australia’s cheapest suburbs: Houses

Shadow of a house, representing Australia's most affordable suburbs for houses

Home buyers looking for the most affordable houses must look beyond Australia’s capital cities – especially expensive markets like Sydney, Melbourne, and Canberra. 

CoreLogic’s latest data shows that the “Most Affordable” suburbs in the country by median price tend to be in Western Australia, the Northern Territory, and South Australia. 

Home loan costs for houses in Most Affordable Suburbs in Capital Cities (18 Dec 2023)

Suburb
Median price
20% deposit
Monthly repayments
Gray, NT
$359k
$72k
$2,501
Elizabeth North, SA
$363k
$73k
$2,529
Elizabeth South, SA
$369k
$74k
$2,570
Elizabeth, SA
$376k
$75k
$2,619
Kwinana Town Centre, WA
$377k
$75k
$2,626
Elizabeth Downs, SA
$380k
$76k
$2,647
Moulden, NT
$382k
$76k
$2,661
Russell Island, QLD
$384k
$77k
$2,675
Elizabeth Grove, SA
$385k
$77k
$2,682
Medina, WA
$392k
$78k
$2,731

Home loan costs for houses in Most Affordable Suburbs in Regional Australia (18 Dec 2023)

Suburb
Median price
20% deposit
Monthly repayments
Norseman, WA
$81k
$16k
$564
Southern Cross, WA
$106k
$21k
$738
Kambalda East, WA
$120k
$24k
$836
Rainbow, VIC
$149k
$29k
$1,038
Collinsville, QLD
$155k
$31k
$1,080
Coolgardie, WA
$160k
$32k
$1,115
Peterborough, SA
$163k
$33k
$1,135
Kambalda West, WA
$163k
$33k
$1,135
Tara, QLD
$165k
$33k
$1,149
Ouyen, VIC
$168k
$34k
$1,170

Australia’s cheapest suburbs: Units

Shadow of units, representing Australia's most affordable suburbs for units

Units are usually the most affordable option for first home buyers, downsizers, and investors in the Australian property market. They tend to offer the sweet spot between value and space. 

CoreLogic’s latest data shows that units are more affordable in the regions or capital cities like Brisbane, Adelaide, and Perth.

Home loan costs for units in Most Affordable Suburbs in Capital Cities (18 Dec 2023)

Suburb
Median price
20% deposit
Monthly repayments
Furnissdale, WA
$160k
$31k
$1,115
Orelia, WA
$240k
$48k
$1,672
Kooralbyn, QLD
$259k
$51k
$1,804
Logan Central, QLD
$270k
$54k
$1,881
Bakewell, NT
$272k
$54k
$1,895
Gray, NT
$275k
$55k
$1,916
Lockridge, WA
$280k
$56k
$1,950
Driver, NT
$287k
$57k
$1,999
Woodridge, QLD
$288k
$58k
$2,006
Shoalwater, WA
$289k
$58k
$2,013

Home loan costs for units in Most Affordable Suburbs in Regional Australia (18 Dec 2023)

Suburb
Median price
20% deposit
Monthly repayments
Laguna Quays, QLD
$92k
$18k
$641
Dolphin Heads, QLD
$116k
$23k
$808
Bucasia, QLD
$166k
$33k
$1,156
Withers Rest, WA
$177k
$35k
$1,233
New Auckland, QLD
$182k
$36k
$1,268
South Gladstone, QLD
$187k
$37k
$1,303
West Gladstone, QLD
$194k
$39k
$1,351
Boulder, WA
$201k
$40k
$1,400
Beresford, WA
$202k
$40k
$1,407
East Mackay, QLD
$204k
$41k
$1,421

Home loan costs for your budget

Woman points out home loan costs she'll need to budget for.

Homeownership is an important financial decision for many Australians. Finding cheaper properties for an investment or first home can ease the sometimes significant cost of entry while allowing you to get out of the rental market and build home equity.

However, it’s also important to remember that mortgages cost more than just a deposit and monthly repayment. You may also need to consider budgeting for charges like:

See our guide for a full breakdown of home loan costs

There’s no guarantee the suburbs listed above will remain some of Australia’s most affordable places to buy in 2024, but it does serve as a timely reminder that not everywhere in Australia is outrageously priced. If you’re willing to look further afield, there are plenty of opportunities for every type of home buyer. 

Keeping your home loan costs down? Compare low interest rate home loans in the table below.

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 472 home loans using the filters below.
Last updated 14 July 2024 Important disclosures and comparison rate warning*
  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.19 % p.a.
    Variable
    Comparison rate
    6.23 % p.a.
    Initial monthly repayment
    $3,059
    Go to site

    No application or service fees. Flexibility to choose your repayment schedule (weekly, fortnightly or monthly). Use multiple Everyday Accounts with 100% interest offset to pay your home loan off sooner.

  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.01 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,001
    Go to site

    Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

  • Fixed Rate Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Fixed 3 years
    Comparison rate
    6.15 % p.a.
    Initial monthly repayment
    $3,027

    Additional repayments of up to $10K per fixed year. Interest rate discounts available. Waiver of $499 application fee when combined with an Orange Advantage Home Loan.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.19 % p.a.
    Variable
    Comparison rate
    6.23 % p.a.
    Initial monthly repayment
    $3,059
    Go to site

    No application or service fees. Flexibility to choose your repayment schedule (weekly, fortnightly or monthly). Use multiple Everyday Accounts with 100% interest offset to pay your home loan off sooner.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.59 % p.a.
    Fixed 3 years
    Comparison rate
    7.06 % p.a.
    Initial monthly repayment
    $3,190

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

image of houses

Need help with refinancing?

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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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