First Home Guarantee hotspot suburbs have been revealed. Picture: Andrew Henshaw.
For years, first-home buyers have been told to “save harder”, but from tomorrow, many will need to save a lot less, when the federal government’s First Home Guarantee extension gets underway.
With young buyers now able to step into the market with as little as a 5 per cent deposit Aussie Home Loans has crunched the numbers to figure out where that small deposit can stretch the furthest. And the results are surprising.
“Too many first home buyers are hunting in suburbs that simply don’t match their budget,” Aussie mortgage broker Tracey Hammond said.
“The disconnect between a dream home and financial reality can lead to missed opportunities, prolonged searches, and the risk of overpaying. Being realistic about purchasing capacity from the outset is crucial.”
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Aussie Home Loans has launched a new First Home Guarantee calculator, which measures average savings in each state and territory against home prices in those areas, to come up with a realistic list of suburbs for house and unit markets where first-home buyers can dare to dream.
NSW
With average savings at $59,983, NSW buyers still face the toughest challenge.
Outer metro unit markets remain some of the few footholds, though rising infrastructure and demand from Sydney commuters continue to push them upwards.
Entry-level suburbs like Edgeworth ($745,818 median), Dapto ($787,694) and Blackheath ($821,479) made the list for houses, while for units, it was Kingswood ($741,089), Wollongong ($761,376) and Wentworth Point ($783,105).
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The extension of the Home Guarantee Scheme has been a major Labor initiative. Picture: Glenn Campbell
VIC
Victoria’s average savings of $38,708 go further, but only in growth corridors.
Melbourne’s western growth belt remains the launch pad for first-time buyers, though transport bottlenecks and limited local amenity are common complaints. Suburbs like Melton South ($523,748) and Wyndham Vale ($602,229) still offer detached homes within commuting distance of Melbourne. Brookfield ($604,436) was the other suburb for houses. Units in Glenroy ($568,377) and Officer ($574,513) remain accessible but competition from investors is strong, while St Leonards ($605,750) was next on the list.
QLD
Demand is buoyed by interstate migration and Brisbane’s Olympic-driven infrastructure push, meaning buyers may need to act fast and put those average savings of $44,975 to use.
Beaudesert ($694,351), Bethania ($697,157) and Caboolture South ($702,577) are fast-growing commuter towns, while bayside lifestyle locations like Bongaree ($619,197) still fall within reach. Rochedale South ($616,183) and Logan Reserve ($664,682) were the other unit markets to make the list.
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WA
With $49,609 average savings and affordability, particularly in coastal and satellite city markets, WA first-home buyers are finding more balance.
Detached houses in Gosnells ($616,130), Midland ($619,037) and Balga ($621,032) sit comfortably under $650,000. Midland also makes the list for units ($464,045), where it’s joined by Rockingham ($490,782) and Mandurah ($506,078) on the coast.
The Aussie home dream has been out of reach for many. Picture: David Swift.
TAS
Average savings of $37,554 don’t stretch far in Hobart’s undersupplied market, where prices are being kept high. However, for houses, Moonah ($632,566), West Moonah ($624,768) and Carlton ($613,877) make the list. For units, only Claremont ($431,766) and Glenorchy ($434,083) remain genuine options for budget-conscious buyers.
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ACT
With the lowest average savings in the country ($28,618), Canberra’s first-home buyers are squeezed hardest. Especially as government-backed jobs and strong demand from students and public servants continue to underpin prices. Units in Gungahlin ($465,112), Belconnen (($504,849) and Phillip ($509,071) remain some of the only accessible options, while affordable house markets include Belconnen ($488,859), Greenway ($552,470) and Phillip ($632,819).
NT
With average savings of $68,148, the NT technically offers the most headroom. Darwin units remain highly affordable, with Darwin City units ($413,263) priced among the lowest capital-city entries nationwide. Darwin City houses ($497,717) were also on the list.
Despite the affordability, limited housing stock and a transient workforce keep Darwin’s market volatile and limit the eligible suburbs to just two all up.
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