Younger Australians facing mounting deposit pressures are turning to lower-deposit lending solutions, with new research from Ubank and Cotality revealing dozens of metro suburbs where buyers can get into the market sooner — and with far less upfront cost — via Ubank’s new 10% deposit, no-lenders mortgage insurance (LMI) home loan.
The digital bank has identified 32 lifestyle suburbs within 10–20km of major CBDs where eligible borrowers can enter the market with up to $175,000 less upfront than a traditional 20% deposit. In 17 of these suburbs, the upfront requirement sits at around $50,000 plus stamp duty.
This comes at a time when housing affordability is deteriorating. New analysis shows first-home buyers now face an “impossible choice” between saving six-figure deposits or taking on high-LVR loans with much steeper repayments, as median deposits regularly exceed $150,000 and the RBA warns prices and rents will keep rising into 2026.
Eliza Owen (pictured left), Cotality head of research, said the deposit challenge is intensifying.
“While the Reserve Bank’s recent rate cuts have improved borrowing conditions it means needing over $7,000 more to reach a 20% deposit… there’s still a real opportunity to buy in metro suburbs across Australia when purchasing with a lower deposit,” Owen said.
Ubank’s new Flex and Neat loans allow eligible owner-occupiers and investors to buy with a 10% deposit and no LMIon loans up to $2 million (90% LVR).
For some buyers, roughly $60,000 upfront and a $125,000 PAYG income could be enough to secure a property around $450,000, subject to lending criteria.
Ray Jokhan (pictured right), chief home lending officer, said the product is giving younger buyers a meaningful head start.
“We’ve already seen customers buy sooner with our existing 15% deposit product… 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.”
The loan also appeals to rentvestors wanting to buy earlier in more affordable markets while renting closer to work or lifestyle hubs.
Cotality’s research identifies the lowest-deposit suburbs within 10km and 20km of capital CBDs. Thirty of the 32 markets required under $100,000 for a 10% deposit:
Harris Park (Sydney units): under $50,000
Coolaroo (Melbourne): $61,000
Woodridge (Brisbane units): $46,000
Greenway (Canberra): $62,000
Glendalough (Perth units): $48,000
Brahma Lodge (Adelaide houses): $69,000
Gray (Darwin units): $31,000
Glenorchy (Hobart units): $46,000
Depending on the suburb, buyers may save up to $175,000 upfront compared to a traditional 20% deposit.
Despite rising costs, 55% of Australians aged 18–35 still hope to own a home, even as more than half say money is their biggest barrier.
Jokhan says Ubank’s lower-deposit products aim to bridge that gap.
“For many younger Australians, homeownership isn’t just about finances – it’s about freedom, stability, and a sense of progress," the Ubank leader said. "Our 10% deposit home loan is built to support that ambition, helping customers move from hopeful to home-ready, sooner.”
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