More affordable homes in outer suburbs, says PropTrack

Buildings in a city with a pin

Property research company PropTrack suggests that home loan repayments are more affordable in some outer areas of Australia’s capital cities and some regional areas too.

For example, the western area of Melbourne, or Ipswich in Brisbane (39 kilometres from the CBD) might equate to a mortgage repayment that is somewhat more affordable relative to incomes, based on data from PropTrack. 

So if you are looking to buy a home, it pays to be picky. Your home loan repayments will obviously be impacted by the popularity of your chosen suburb - and where it’s located!

With this in mind, let’s get into some reasons for why buying a home in outer locations could be worth thinking about.

Lower home loan costs seen in outer suburbs

Row of suburban houses

According to PropTrack, some outer suburbs are more affordable in the sense that your mortgage costs might better suit an average income. For example, if you purchase a house in Fisherman Bay in South Australia, you are likely to find homes priced at around $200,000 - $300,000, based on current Domain listings. 

PropTrack notes in its report that for a person on, say, $61,000 annual salary, your mortgage repayments on such a property in this location would be significantly easier to handle than some of the higher priced central suburbs of Adelaide, for example. 

So, in a cheaper spot where your proposed repayment amounts can be lowered, your home loan overall would clearly become more manageable over the long haul. 

And aiming for an affordable home could also mean that your initial deposit would be smaller, giving you more flexibility to put money towards paying off your home. 

In saying that, maybe your next move is to know how to save for a deposit, and whether purchasing a property in the outer suburbs might be a better alternative.

Seeking more affordable mortgage repayments

Man standing atop a building holding a telescope

PropTrack notes that the burden of mortgage repayments is relative to income, where in a city like Sydney or Melbourne, average incomes tend to be higher and so property prices are typically higher and have been known to escalate.

Meanwhile, cheaper properties in the outer suburbs of your capital city, or nearby regional areas might just be worth the effort. The lower price points generally will be less burdensome on an average income. 

So, it’s important to carry out your own research to find a home that’s suitable for you. For instance, to figure out an estimate of your monthly repayments, you might try using a mortgage repayment calculator.

If you’re ready to begin your property journey, why not check out some of the best home loans on the market that our experts have tracked. You can start comparing your top picks below!

Compare home loan options - last updated 2 December 2023

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

    Owner Occupier, Principal & Interest, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    6.40% p.a.
    fixed 4 years
    6.24% 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.

  • Offset Home Loan

    Package, Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.39% p.a.

    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.

  • Mozo Expert Choice Badge
    Variable Rate Home Loan Special Offer

    Package, Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.51% p.a.

    Package benefits across Home Loans, Visa Credit Card, Personal Loans and Term Deposits. No package fee for the first year. No application, settlement or redraw fees to pay. Quick and easy application. Free CoreLogic RP Data property reports. *Terms, conditions and lending criteria apply.

  • Flex Home Loan

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.19% p.a. variable
    6.43% p.a.

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process.


* 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.

^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.