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
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*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.