Younger Aussies facing ‘deposit dilemma’ look to Ubank’s new 10% deposit home loan to own or invest in lifestyle suburbs
- Ubank research in partnership with Cotality pinpoints 32 lifestyle suburbs 10-20km of state capitals where younger Australians can own or invest with up to $175,000 less upfront via Ubank’s new 10% deposit home loan with no LMI.
- The data reveals 17 suburbs where Ubank customers could buy with approx. $50,000 plus Stamp Duty via its 10% deposit no LMI product.
Award-winning digital bank, Ubank, has partnered with Cotality to spotlight 32 ‘lifestyle suburbs’ where younger Australians can buy with up to hundreds of thousands of dollars less upfront, thanks to its new 10% deposit home loan with no Lenders Mortgage Insurance (LMI). The offer helps owner occupiers fast-track their first home, while giving investors earlier access to take the next step in their property journey.
Since the Reserve Bank of Australia’s first rate cut in February 2025, national home values have climbed 4.4%, adding $36,000 to the median dwelling value and driving up the cost of a 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.
Eliza Owen, Head of Research at Cotality, said the 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. 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,” said Eliza Owen, Head of Research at Cotality.
Half the typical deposit, no LMI costs
While the deposit hurdle is rising, Ubank has introduced a new 10% deposit Flex and Neat home loan for owner occupiers and property investors – with P&I repayments and no sting of LMI. For applications up to $2 million for 90% LVR, Ubank’s new low deposit offering gives younger buyers greater flexibility to enter the market sooner. Based on current lending criteria, with around $60,000 and a PAYG income of $125,000, some eligible customers may be able to purchase a property within the range of $450,000.
Ray Jokhan, Chief Home Lending Officer at Ubank, says the bank’s new 10% deposit, no LMI home loan offers real hope to younger buyers eager to enter the property market sooner.
While low deposit loans aren’t for everyone, Jokhan notes this product may offer earlier access to the market 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. 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,” he added.
This latest offering 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.
Overcoming the Deposit Dilemma
Cotality’s research identifies the lowest house and unit deposit requirements within 10km and 20km of capital city CBDs, spotlighting 32 affordable metro markets[1]. Of these, 30 suburbs had 10% deposit sizes under $100,000:
- Median unit values in Harris Park (19km from Sydney CBD) require a 10% deposit of just under $50,000
- Coolaroo dwellings (17km from Melbourne CBD) require a 10% deposit of $61,000
- Woodridge units (under 20km from Brisbane CBD) require a 10% deposit of $46,000
- Median house values in Greenway (under 20km from Canberra CBD) require a 10% deposit of $62,000
- Glendalough units just 5km from Perth CBD has the median 10% deposit at $48,000
- Brahma Lodge offers the lowest deposit hurdle for houses in a 20km radius of Adelaide CBD at $69,000
- Median units in Gray, Darwin require a 10% deposit at $31,000
- Median units in Glenorchy, Hobart require a 10% deposit of $46,000
The research also highlights the power of Ubank’s deposit difference: the dollar gap between a traditional 20% deposit and Ubank’s 10% deposit home loan with no LMI. As the table below shows, this could mean saving up to $175,000 upfront, depending on the suburb.
| State | Suburb | City Name | Median value | Deposit Difference | 10% deposit | 20% deposit |
| NSW | Sydenham (NSW) | Greater Sydney | $ 1,750,000 | $ 175,000 | $ 175,000 | $ 350,000 |
| VIC | Maidstone | Greater Melbourne | $ 865,000 | $ 86,000 | $ 87,000 | $ 173,000 |
| QLD | Rocklea (QLD) | Greater Brisbane | $ 796,000 | $ 79,000 | $ 80,000 | $ 159,000 |
| ACT | Scullin | Australian Capital Territory | $ 859,000 | $ 86,000 | $ 86,000 | $ 172,000 |
| WA | Westminster | Greater Perth | $ 715,000 | $ 72,000 | $ 71,000 | $ 143,000 |
| SA | Lightsview | Greater Adelaide | $ 793,000 | $ 80,000 | $ 79,000 | $ 159,000 |
| NT | Berrimah | Greater Darwin | $ 515,000 | $ 51,000 | $ 52,000 | $ 103,000 |
| TAS | Claredon Vale | Greater Hobart | $ 489,000 | $ 49,000 | $ 49,000 | $ 98,000 |
The new research gives real hope to the 55% of younger Australians aged 18–35 who remain hopeful about owning their own home, even as 52% cite money as their top worry[2].
“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 said.
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[1] While this data helps to highlight different market opportunities, buyers are encouraged to do their own research and due diligence to ensure their purchase is the right one for them.
[2] According to Ubank data commissioned from NAB Behavioural Economics research team
For media enquiries, please email Jacqueline Dearle, Senior Manager, Ubank Communications at Jacqueline.dearle@ubank.com.au.
For more Ubank Newsroom stories, visit: https://www.ubank.com.au/newsroom.
About Ubank
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