The inner-city suburbs you can buy into with a small deposit

New data from Cotality and Ubank has pinpointed 32 well-located "lifestyle" suburbs in Australian capital cities, where first-home buyers or investors can get onto the property ladder for as little as $50,000 plus stamp duty.

The strategy involves taking advantage of a new Ubank product, where approved buyers can take out a 10% deposit home loan without the need for Lenders Mortgage Insurance (LMI).

All the suburbs selected by Cotality are located less than 20 kilometers from city centres, with excellent options in several suburbs less than 10 kilometers from CBDs.

The details

Since the Reserve Bank of Australia’s first rate cut in February 2025, Cotality data shows national home values have climbed 4.4%, adding $36,000 to the median dwelling value and driving up the cost and the time needed to save up for a traditional 20% deposit.

Buyers hoping to avoid LMI now need to put down $171,000 for a median-priced home, up from $164,000 in February.

Cotality’s Head of Research, Eliza Owen, says the so-called “deposit dilemma” is real and many younger Australians may feel it’s becoming more pronounced as recent rate cuts have triggered momentum in the property market.

“While the Reserve Bank’s recent rate cuts have improved borrowing conditions, it means needing over $7,000 more to reach a 20% deposit,” she says.

“Many people now feel that buying a home or investment property means being limited to fringe suburbs.

“However, as our new data highlights, there’s still a real opportunity to buy in metro suburbs across Australia when purchasing with a lower deposit,” Ms Owen says.

Nov18-Houses

In a bid to compete with the Albanese government’s First Home Guarantee scheme - where eligible buyers can purchase a home to live in with just a 5% deposit and no need for LMI - Ubank has launched a new 10% deposit with no LMI home loan.

However, unlike the FHG scheme, Ubank’s offer is also available to investors.

Ubank - which is a fully-owned subsidiary of NAB, Australia’s third largest bank - asked Cotality to identify suburbs with the lowest house and unit deposit requirements within 10km and 20km of capital city CBDs.

Cotality came up with a list of 32 affordable metro markets.

Of these, 30 suburbs had 10% deposit sizes under $100,000. They include:

Harris Park (19km from Sydney CBD), where the median unit price would see a 10% deposit of just under $50,000.
All dwellings in Coolaroo (17km from Melbourne CBD), where the median price requires a 10% deposit of $61,000.
Woodridge units (under 20km from Brisbane CBD), where the median 10% deposit would be $46,000
Houses in Greenway (under 20km from Canberra CBD) where the median price requires a 10% deposit of $62,000
Units in Glendalough, just 5km from Perth’s CBD, where the median 10% deposit is $48,000
Brahma Lodge houses offer the lowest deposit hurdle within a 20km radius of Adelaide CBD at $69,000
The median unit price in Darwin’s Gray requires a 10% deposit of just $31,000
And Glenorchy units in Hobart would require a 10% median deposit of $46,000

Nov18-Units

Ray Jokhan, the Chief Home Lending Officer at Ubank, says the bank’s new 10% loan product “offers real hope to younger buyers eager to enter the property market sooner.”

While he points out that low deposit loans aren’t for everyone, Mr Jokhan says Ubank’s new loan product may offer earlier access to the market for younger Australians and the potential to build equity over time.

“We’ve already seen customers buy sooner with our existing 15% deposit product, using it as a stepping stone to their first home,” he says.

“As they build equity and their loan-to-value ratio drops below 80%, they become eligible for better rates — and we regularly review those with them.”

That “better rates” comment is key here.

Ubank’s 10% no LMI home loan has a comparison rate of 6.21% for owner-occupiers and 6.43% if you want the benefits of an offset account.

That’s quite expensive when compared to comparison rates of between 5% and 5.3% for some of the best current variable home loan rates for first-home buyers.

A 10% deposit also means a larger, 90% loan-to-value ratio mortgage, involving larger monthly repayments than a standard loan.

Nevertheless, the ability to get into the market with less than a 20% deposit and without the need for Lenders Mortgage Insurance could make the Ubank offer attractive to many trying to get their foot onto the property ladder.

Mr Jokham says the bank’s new 10% no LMI loan product also “opens the door to investors or ‘rentvestors’ – a trend where a growing number of ‘first-home buyer investors’ choose to rent where they want to live while buying property in more affordable markets.”

He says NAB research shows 55% of younger Australians aged 18–35 remain hopeful about owning their own home, even as 52% cite money as their top worry.

“For many younger Australians, home ownership isn’t just about finances — it’s about freedom, stability, and a sense of progress.

“Our 10% deposit home loan is built to support that ambition, helping customers move from hopeful to home-ready, sooner,” Mr Jokhan says.