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
About the author
About the author
Property
Multigenerational living is moving mainstream: how agents, developers and lenders can monetise the shift
Australia’s quiet housing revolution is no longer a niche lifestyle choice; it’s a structural shift in demand that will reward property businesses prepared to redesign product, pricing and ...Read more
Property
Prestige property, precision choice: a case study in selecting the right agent when millions are at stake
In Australia’s top-tier housing market, the wrong agent choice can quietly erase six figures from a sale. Privacy protocols, discreet buyer networks and data-savvy marketing have become the new ...Read more
Property
From ‘ugly’ to alpha: Turning outdated Australian homes into high‑yield assets
In a tight listings market, outdated properties aren’t dead weight—they’re mispriced optionality. Agencies and vendors that industrialise light‑touch refurbishment, behavioural marketing and ...Read more
Property
The 2026 Investor Playbook: Rental Tailwinds, City Divergence and the Tech-Led Operations Advantage
Rental income looks set to do the heavy lifting for investors in 2026, but not every capital city will move in lockstep. Industry veteran John McGrath tips a stronger rental year and a Melbourne ...Read more
Property
Prestige property, precision choice: Data, discretion and regulation now decide million‑dollar outcomes
In Australia’s prestige housing market, the selling agent is no longer a mere intermediary but a strategic supplier whose choices can shift outcomes by seven figures. The differentiators are no longer ...Read more
Property
The new battleground in housing: how first-home buyer policy is reshaping Australia’s entry-level market
Government-backed guarantees and stamp duty concessions have pushed fresh demand into the bottom of Australia’s price ladder, lifting values and compressing selling times in entry-level segmentsRead more
Property
Property 2026: Why measured moves will beat the market
In 2026, Australian property success will be won by investors who privilege resilience over velocity. The market is fragmenting by suburb and asset type, financing conditions remain tight, and ...Read more
Property
Entry-level property is winning: How first home buyer programs are reshaping demand, pricing power and strategy
Lower-priced homes are appreciating faster as government support channels demand into the entry tier. For developers, lenders and marketers, this is not a blip—it’s a structural reweighting of demand ...Read more
Property
Multigenerational living is moving mainstream: how agents, developers and lenders can monetise the shift
Australia’s quiet housing revolution is no longer a niche lifestyle choice; it’s a structural shift in demand that will reward property businesses prepared to redesign product, pricing and ...Read more
Property
Prestige property, precision choice: a case study in selecting the right agent when millions are at stake
In Australia’s top-tier housing market, the wrong agent choice can quietly erase six figures from a sale. Privacy protocols, discreet buyer networks and data-savvy marketing have become the new ...Read more
Property
From ‘ugly’ to alpha: Turning outdated Australian homes into high‑yield assets
In a tight listings market, outdated properties aren’t dead weight—they’re mispriced optionality. Agencies and vendors that industrialise light‑touch refurbishment, behavioural marketing and ...Read more
Property
The 2026 Investor Playbook: Rental Tailwinds, City Divergence and the Tech-Led Operations Advantage
Rental income looks set to do the heavy lifting for investors in 2026, but not every capital city will move in lockstep. Industry veteran John McGrath tips a stronger rental year and a Melbourne ...Read more
Property
Prestige property, precision choice: Data, discretion and regulation now decide million‑dollar outcomes
In Australia’s prestige housing market, the selling agent is no longer a mere intermediary but a strategic supplier whose choices can shift outcomes by seven figures. The differentiators are no longer ...Read more
Property
The new battleground in housing: how first-home buyer policy is reshaping Australia’s entry-level market
Government-backed guarantees and stamp duty concessions have pushed fresh demand into the bottom of Australia’s price ladder, lifting values and compressing selling times in entry-level segmentsRead more
Property
Property 2026: Why measured moves will beat the market
In 2026, Australian property success will be won by investors who privilege resilience over velocity. The market is fragmenting by suburb and asset type, financing conditions remain tight, and ...Read more
Property
Entry-level property is winning: How first home buyer programs are reshaping demand, pricing power and strategy
Lower-priced homes are appreciating faster as government support channels demand into the entry tier. For developers, lenders and marketers, this is not a blip—it’s a structural reweighting of demand ...Read more
