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.

Compare low interest rate home loans - last updated 24 February 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
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    Home Variable Rate

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.15% p.a.

    Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.

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  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.11% p.a.

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    Home Fixed Rate

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    5.80% p.a.
    fixed 3 years
    6.05% p.a.

    Enjoy the security of a competitive fixed interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply). Mozo Experts Choice award winner.

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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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