Where your home loan might go further: South Australia takes the lead on new housing

In a surprising turn of events, South Australia (SA) has topped Commsec's state-based economic report, a first in its 15-year history. Victoria, the previous leader, now ties with NSW in second place.

“Population growth in South Australia has tripled over the past two years, which is showing up in a strong housing market and overall economic activity,” said CommSec chief economist Craig James.

This shift is particularly significant for home buyers. With SA topping the list in construction work and maintaining low unemployment rates, the housing market might look like an attractive destination.

What size home loan do you need for SA?

South Australia’s surge in construction indicates a growing availability of new homes, making it an opportune time for potential homeowners to consider the size and type of home loan that would best suit their needs in this thriving market.

According to Domain, the median price of a two-bedroom house in Adelaide is $726,000, while the median price for a three-bedroom house is $919,000. So, depending on your loan-to-value ratio (LVR), how big a deposit and loan do you need for these properties?

Of course, remember that interest rates will also influence how much you have to pay for your loan, so it’s important to compare rates. Currently, Mozo’s database puts the average variable rate loan at 6.85% (as of 6 February), which can be a helpful benchmark to compare loans against.

The CommSec State of the States report uses the latest available information to provide an economic snapshot of each state and territory by comparing eight key indicators: economic growth, retail spending, equipment investment, unemployment, construction, population growth, housing finance and dwelling commencements.

Not sure where to get started on home loans? Head over to our home loan hub page and compare the 464 home loans that we track. Alternatively, you can check out some of the products in the table below…