Where you can pay off a house for $250 a week: Most affordable Victorian suburbs and towns

8 Hannah Close in Melton West is for sale.

Home prices may be on the rise — but Victorians can still own a property for less than $250 a week in parts of the state, thanks to record-low interest rates.

Kerang, Orbost, Horsham and Terang were among the towns with the state’s lowest mortgage repayment rates, all falling below the $250 mark.

Portland, Corio, Hastings and Dallas come in at less than $499, according to new data from Aussie Home Loans.

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Melton West, where this home at 8 Hannah Close is for sale, is among some of the cheapest suburbs in Victoria to live.

The four-bedroom home is only 40 minutes from Melbourne’s CBD.

The research also found once tenants jumped the hurdle of saving a deposit, the cost of paying off a mortgage was far cheaper than covering rent in towns across Victoria and even some suburbs in Melbourne, where realestate.com.au data shows the median weekly rent for houses is $430.

Owning a home in regional Victoria remains significantly cheaper than in the city. But buyers reluctant to leave the big smoke can keep their weekly repayments below $500 in several suburbs including Brookfield ($497 on a variable loan) and Frankston North ($460 on a variable loan).

Homeowners in Melton, on Melbourne’s western fringe, are coughing up weekly fixed-rate repayments of just $401 for a median-priced house and $282 for a unit.

Hocking Stuart Melton agent Damien Spiteri said the area was full of “affordable” family homes for everyone from first-home buyers to those wanting to downsize.

“Because the homes are priced so well, … people come to Melton and know it’s cheaper and good value,” Mr Spiteri said.

“We have a lot of infrastructure now and a lot more to come.

“Your transport facilities are still good, … and it’s still less than a 40-minute drive from the city on a good run.”

Aussie Home Loans chief executive James Symond said tenants across Victoria should be asking themselves: “why pay your landlord when you could potentially pay the same amount, or less monthly, on a house or apartment you can call your own?”

“The cost gap between buying and renting has tightened across the country over the last year,” he said.

“Record lows in variable and fixed mortgage rates, and government incentives for first-home buyers, have made buying conditions generally more attractive.”

Victoria's cheapest places to have a mortgage - Case Study

Daniel and Megan Irwin with two of their three children — Ivy, 3, and Emmerson, 18 months — are selling their home at 8 Hannah Close in Melton West. Picture: Rob Leeson

The Irwin family said low mortgage repayments and the small town community feel were what drew them to the area.

Daniel Irwin and wife Megan said the opportunity for low repayments and a sense of community brought them to Melton West 12 years ago, when they bought their 8 Hannah Close home.

The couple, who has three children under five, has since subdivided the land and built a second dwelling to move into and recently listed the original home for $399,000-$429,000.

They plan to save up and “get ahead” for a few years before building their dream home.

“It was a good starter and good house to raise the kids,” Mr Irwin said.

“We’ve got family and friends in the area, there are a lot of schools that are walking distance, and it’s close enough to the city — my wife works in Melbourne so she commutes via train, or it’s easy enough for her to drive.

“It’s definitely more affordable and that’s part of the reason we’ve stayed around here. And although there’s a lot of growth, it’s still a small town feel.”

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Victoria's cheapest places to have a mortgage - Case Study

The family is now living in a separate dwelling at the back of the home. Picture: Rob Leeson

In the December quarter, regional Victoria had an average residential median price about $350,000 less than the city, according to major real estate agency Ray White.

Ray White Rural Victoria agent Jason Hellyer said it was “no wonder” Victorians were seeking tree changes in droves.

“It’s simple maths — property in regional Victoria is terrific value when compared to Melbourne,” he said.



Weekly repayments of $250 or less on a variable rate


Kerang, $159

Orbost, $198

Morwell, $205

Terang, $205

Red Cliffs, $222

Ararat, $224

Churchill, $227

Stawell, $229

Moe, $237

Hamilton, $238


Moe, $184

Mooroopna, $185

Morwell, $188

Cobram, $188

Portland, $203

Traralgon, $207

Shepparton, $214

Horsham, $216

Mildura, $217

Bairnsdale, $229

Weekly repayments of $250-499 on a variable rate


Mooroopna, $253

Maryborough, $257

Newborough, $261

Yarram, $261

Camperdown, $264

Kyabram, $271

Maffra, $274

Portland, $279

Cobram, $279

Swan Hill, $284


Yarrawonga, $256

Echuca, $270

Sebastopol, $271

Wendouree, $280

Kangaroo Flat, $285

Golden Square, $294

Kennington, $298

Warrnambool, $304

Carlton, $305

Flora Hill, $306

Weekly repayments of $500-750 on a variable rate


Ballarat North, $500

Harkness, $501

Meadow Heights, $502

Black Hill, $504

Warburton, $504

Doveton, $508

Cape Woolamai, $509

Beechworth, $510

Strathdale, $512

Bell Post Hill, $513


Maribyrnong, $502

West Melbourne, $504

West Footscray, $507

Seaford, $509

Newtown, $510

Kensington, $513

Brunswick West, $514

Box Hill, $518

Point Cook, $518

Lilydale, $523

Source: Aussie Home Loans

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