Loan Repayments Cheaper Than Rent

Loan Repayments Cheaper Than Rent

In the recent Buy vs Rent report commissioned by Aussie from Corelogic it revealed which suburbs across Australia where mortgage repayments were cheaper than rental payments.

The report also found that on variable rate loans with interest at 3.65% it was cheaper to service a mortgage on 33% of houses and 38% of apartments than rent.

And on loans where interest is fixed at 2.35% for three years, it was cheaper to service a mortgage on 52% of houses and 60% of apartments than to pay rent.

“In many suburbs across Australia, especially those outside the major capital cities, on a monthly basis, it is cheaper to buy than rent,” James Symond said, chief executive of Aussie Home Loans.

“Why pay your landlord when you could potentially pay the same amount – or less monthly – on a place you can call your own?”

Top 5 Suburbs Where It’s Cheaper to Buy Than Rent - By Region

Buy vs Rent Suburbs

With interest rates at historic lows, a slightly weaker property market and all the government incentives on offer, now is the perfect time to consider jumping into the property market to buy your first home or upgrade/downsize to a new home.

Our finance team have access to over 40 lenders Australia wide and doing all the hard work for you in finding the right lender for your situation is what we do. 

Book in a time to speak with one of our finance team today.

*Source: Corelogic & Mortgage Business. The report also didn’t take into account capital appreciation, transaction costs or other costs associated with either home ownership or renting, including (but not limited to) maintenance, council rates, electricity, water and sewerage, land tax, body corporate levies, stamp duty, legal and conveyancing fees.

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