Four suburbs in Melbourne’s north-west have been revealed as locations providing the most opportunity for first home buyers.
New figures from Equifax’s quarterly consumer credit insights ranked the five most affordable suburbs within a 60km radius of Melbourne by average loan amount for July-September.
Four of the five suburbs listed included Melton South, Burnside, Keilor Downs and Roxburgh Park, recording median loan amounts of $477,000, $489,000, $492,000 and $524,000 respectively.
In collating the data, Equifax said it “mapped the intersection of intent versus affordability” to reveal the suburbs with the most opportunity for first home buyers.
Equifax chief solution officer Kevin James said the suburbs represent ‘opportunity zones’ for first home buyers.
“We know that many Australians, particularly those looking to purchase their first homes, are being priced out of major cities, and we also know that this factor won’t be completely aided by federal government incentivisation,” Mr James said.
“Young Australians looking to break into the housing market could consider alternative regions where these government incentives are likely to provide the greatest benefit.
“What’s more, at the same time, for lenders, these suburbs could represent a key growth market for the new first home buyer incentive scheme.”
Across the country, Equifax recorded a mortgage application increase of 10.3 per cent, the strongest growth year-on-year since 2021.
First home buyer appetite also climbed with Equifax recording the largest number of first home buyer enquiries since quarter one (January-March), 2022.
However, total mortgage accounts declined year-on-year for the second consecutive quarter, likely driven by an affordability threshold challenge, Equifax said.
“While we have seen an increase in property-buying intention, specifically in the Gen Z and Millennial demographic, housing affordability was cited as a primary concern in the 2025 iCIRT (Independent Construction Industry Rating Tool) consumer research,” Mr James said.
“It’s important to remember that while first home buyers have access to incentives such as the government’s five per cent deposit scheme, it is not enough to close the gap for many. With rising house prices demanding higher LVRs (Loan-to-Valuation Ratio), the barriers to entry persist regardless of the applicant’s deposit size or credit quality”.
