Revealed: Australia’s surprising new mortgage hotspots in 2025

Extraordinary new data from one of the nation's biggest lenders has revealed surprise new suburbs that are now Australia's top mortgage hotspots.

Truganina in Victoria has emerged among the top 10 metropolitan suburbs in Australia for home lending, with a 212sq m block of residential land selling for $260,000 in April 2025.

Extraordinary new data from one of the nation's biggest lenders has revealed the surprise suburbs that are now Australia's top mortgage hotspots.

Big Four bank executive Denton Pugh, who is the National Australia Bank executive for home lending, shares NAB’s proprietary home lending data – unveiling trends between January–May 2025 – and what their expectations are now interest rates.

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NAB Executive for Home Lending Denton Pugh.

By Denton Pugh, NAB Executive for Home Lending

You’d be forgiven for feeling a little deflated after the Reserve Bank left rates on hold earlier this month. The market, and most economists, were expecting a cut.

In RBA meeting minutes recently released the decision to keep rates steady was about timing rather than direction, with Governor Michele Bullock noting that, “we are on a path to easing further”.

Many house hunters would have been hoping for a midwinter cut, but despite this disappointment, we’re seeing momentum continue through the winter months, which are traditionally a little quieter.

Twelve months ago, many buyers were holding back due to higher rates. Fast-forward to today: two rate cuts behind us, and NAB expecting another two this year, many home buyers, especially first-home buyers, see this as a window of opportunity before the market heats up further.

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This incomplete home sold for $311,000 in April 2025 in Tarneit, Victoria, where home lending has hit the top 10 level across Australia’s major cities.

We’re not seeing a buying frenzy, but things are definitely busier this year. In fact, the average number of bidders at auctions nationwide has reached its highest level in 18 months.

Momentum is building well ahead of the traditional spring peak.

Government support is also playing a key role. The Home Guarantee Scheme continues to help thousands of Australians get into their first home with lower deposits – the scheme is expected to be expanded in 2026. And in recent months, both Queensland and Western Australia have made changes to their assistance offered.

In Queensland, eligible first-home buyers purchasing or building a new home no longer pay stamp duty, regardless of the property price. The state’s 2025 budget also announced a “Boost to Buy” shared equity scheme to help buyers with lower deposits into the market.

WA has made changes to its stamp duty concessions too, significantly reducing the upfront costs for first-home buyers. I’m always hearing stories where after talking to a home lending expert, a customer realises they can break into the property market sooner than expected.

If you’re in that camp, thinking about buying but not sure where to start, it’s worth having that conversation.

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Schofields is among the top 10 suburbs NAB is lending to for homes with this block of land selling there for $66,000 in February 2025.

Where are Australians buying? Looking at NAB home lending data from metro suburbs specifically, Truganina in Melbourne’s west is the most popular metro suburb for home buyers so far in 2025. Five of the top 10 spots also go to the city’s outer ring.

Top 10 metro suburbs*

1. Truganina, Melbourne

2. Roxburgh Park, Melbourne

3. Yarramundi – Londonderry, Sydney

4. Point Cook, Melbourne

5. Cranbourne East, Melbourne

6. Tarneit, Melbourne

7. Schofields, Sydney

8. Wentworthville, Sydney

9. Piara Waters – Forrestdale, Perth

10. Prestons, Sydney

Affordability is the obvious driver, especially for first-home buyers. Many are looking further out where their money buys more, and they don’t have to compromise on space and lifestyle.

Many of these suburbs are now better connected thanks to major infrastructure investments, with just a short commute to the CBD.

*NAB proprietary home lending data between January – May 2025

– Denton Pugh is National Australia Bank’s Executive for Home Lending.

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Originally published as Revealed: Australia’s surprising new mortgage hotspots in 2025