Invest
1 in 2 suburbs cheaper to buy than rent
Borrowers are paying less on their loan repayment across more than half of all suburbs compared with if they rented in the same suburb, an industry report has revealed.
1 in 2 suburbs cheaper to buy than rent
Borrowers are paying less on their loan repayment across more than half of all suburbs compared with if they rented in the same suburb, an industry report has revealed.
A report from CoreLogic, commissioned by Aussie, shows that in almost 60 per cent of suburbs around the nation, it could cost less to pay down a home loan each month than to pay rent.
The report found that when buying a house under a three-year fixed rate scenario, over half – or 52.2 per cent – of Australian suburbs were cheaper to pay down a mortgage than pay rent on a house, which is up from 39.9 per cent last year.
According to the report, this growing trend of home loan borrowers paying less in their mortgage repayments than rent has been attributed to record-low mortgage rates, combined with a slightly weaker property market.
“This is great news for first home buyers, who may not realise that buying a property could reduce their housing costs in the long term. And we’re talking savings that have an impact,” Aussie CEO James Symond said.
Record-low interest rates are the key
The report found that the RBA reducing already low rates a further three times this year has made buying more affordable than ever.
“Rates were already low at the start of 2020, but they tumbled in March following back-to-back cuts by the Reserve Bank.
“Today, we’re seeing home loan rates that start with a ‘2’ – the lowest since records began in 1959,” Mr Symond said.
The mortgage brokers pointed out that RBA governor Philip Lowe has previously stated that rates will remain lower for longer, signalling the next rate rise is three years away.
“That’s giving home buyers some certainty that interest rates will remain low for an extended period of time,” Mr Symond told investors.
A big opportunity for first home buyers
The mortgage broker believes now is a good opportunity for first home buyers to get into the market.
“Our report shows there’s a big choice of suburbs where owning a home could be a lot kinder on your budget than renting,” Mr Symond said.
He advised first home buyers looking to enter the market to keep an eye out for government perks they could be eligible for.
“And along with low rates, first home buyers could also be eligible for financial support to get started – from state-based grants and stamp duty savings through to the $25,000 HomeBuilder grant.
“In more good news, October saw an extra 10,000 places opened up for the First Home Loan Deposit Scheme, which makes it possible to buy with a 5 per cent deposit and no lender’s mortgage insurance,” Mr Symond concluded.
Here are a few places where buying could be cheaper than renting, according to CoreLogic research:
- Carlton, Melbourne – mortgage repayments could be $675 less than rents per month.
- Logan, Brisbane – monthly repayments could be $590 less than rents.
- Coolangup, Perth – monthly loan repayments can be as much as $597 less than what you’ll pay in rent.
- Liverpool, Sydney – buying a home here could mean saving $194 each month compared with renting.
RELATED ARTICLES
-
Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance
-
Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances
-
From intuition to instrumentation: How a "two-stakeholder" sales playbook lifted close rates and cut cycle times
About the author
About the author
Property
Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance
NSW’s latest enforcement action on real estate trust accounts isn’t a one-off embarrassment; it’s a stress test of sector governance. With licences suspended and penalties applied, the message is ...Read more
Property
Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances
After a blistering run, Australia’s rental market is loosening at the edges. Vacancy is edging up off historic lows, rent inflation is set to moderate into 2026, yet underlying demand remains ...Read more
Property
From intuition to instrumentation: How a "two-stakeholder" sales playbook lifted close rates and cut cycle times
High-stakes consumer purchases are increasingly joint decisions. When one partner is under-served, deals stall. This case study follows an Australian real estate group that rebuilt its sales motion ...Read more
Property
Selling in 2025: How to spot bad agents fast—and build an ROI-first vendor playbook
In Australia’s property market, choosing the wrong listing agent isn’t just inconvenient—it’s a textbook principal–agent failure that can wipe tens of thousands off your sale outcomeRead more
Property
Selling in 2026: How to de‑risk your agent choice and protect tens of thousands at settlement
Choosing the wrong selling agent isn’t just an inconvenience — it’s a balance‑sheet risk. In a market where digital discovery is concentrated and AI is recasting how listings are priced and promoted, ...Read more
Property
Rate resilience in Australian housing: why scarce supply is overpowering monetary tightening
Australia’s housing market is defying higher borrowing costs because the binding constraint isn’t demand—it’s supply. Brokers report persistent buyer competition and investor repositioning, while ...Read more
Property
Victoria’s $100m renter support push: what it means for landlords, proptech and the housing economy
Victoria has unveiled a new suite of rental support services, including a dedicated helpline for renters aged 55+, underpinned by a funding package widely reported at around $100 millionRead more
Property
The multigenerational home moves mainstream: where the next margin lives in Australian real estate
Multigenerational living is shifting from edge case to core demand driver in Australia’s housing market. For agents, developers and lenders, the commercial upside lies in rethinking product design, ...Read more
Property
Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance
NSW’s latest enforcement action on real estate trust accounts isn’t a one-off embarrassment; it’s a stress test of sector governance. With licences suspended and penalties applied, the message is ...Read more
Property
Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances
After a blistering run, Australia’s rental market is loosening at the edges. Vacancy is edging up off historic lows, rent inflation is set to moderate into 2026, yet underlying demand remains ...Read more
Property
From intuition to instrumentation: How a "two-stakeholder" sales playbook lifted close rates and cut cycle times
High-stakes consumer purchases are increasingly joint decisions. When one partner is under-served, deals stall. This case study follows an Australian real estate group that rebuilt its sales motion ...Read more
Property
Selling in 2025: How to spot bad agents fast—and build an ROI-first vendor playbook
In Australia’s property market, choosing the wrong listing agent isn’t just inconvenient—it’s a textbook principal–agent failure that can wipe tens of thousands off your sale outcomeRead more
Property
Selling in 2026: How to de‑risk your agent choice and protect tens of thousands at settlement
Choosing the wrong selling agent isn’t just an inconvenience — it’s a balance‑sheet risk. In a market where digital discovery is concentrated and AI is recasting how listings are priced and promoted, ...Read more
Property
Rate resilience in Australian housing: why scarce supply is overpowering monetary tightening
Australia’s housing market is defying higher borrowing costs because the binding constraint isn’t demand—it’s supply. Brokers report persistent buyer competition and investor repositioning, while ...Read more
Property
Victoria’s $100m renter support push: what it means for landlords, proptech and the housing economy
Victoria has unveiled a new suite of rental support services, including a dedicated helpline for renters aged 55+, underpinned by a funding package widely reported at around $100 millionRead more
Property
The multigenerational home moves mainstream: where the next margin lives in Australian real estate
Multigenerational living is shifting from edge case to core demand driver in Australia’s housing market. For agents, developers and lenders, the commercial upside lies in rethinking product design, ...Read more
