Where mortgage repayments are cheaper than rent in Australia right now

Feeling stuck in the rental loop? You're not the only one.

Rents have climbed 38.4% over the last five years, adding more than $180 weekly to the average Aussie's housing bill. That's nearly $9,500 extra yearly to stay in the same place.

According to CoreLogic's April 2025 Quarterly Rental Review, vacancy rates remain near record lows at just 1.6%, meaning fewer homes, more competition, and continued pressure on renters.

But here's the twist: buying a property in dozens of suburbs across Australia is cheaper than renting. Mortgage repayments can come in lower than weekly rent, especially if you have the right support.

With property prices stabilising and new buyer incentives on the table, now could be the time to consider buying, not just dream about it.

Why does this matter in 2025?

Let's break it down. Here's what's happening in the market and why it might be the right time to buy.

Rents are surging, but house prices are stabilising.

According to CoreLogic, national rents jumped 1.7% over the March quarter, with regional rents growing faster than capital cities. Over the past five years? That adds up to a massive 38.4% rise or an extra $182 a week for the average renter.

At the same time, the national vacancy rate is holding tight at just 1.6%, and rental listings are down more than 22% year-on-year. That means tougher competition, fewer choices, and no signs of the pressure easing soon.

But here's where things start to shift. Property prices have stabilised or are rising modestly in many regional and outer-metro areas, giving buyers a rare opening: less heat, more negotiating power, and the chance to step off the rental treadmill for good.

Example: In Bundaberg, QLD, the median rent for a 3-bed house is around $570 a week. But a mortgage on a comparable property? Around $520 with a 20% deposit, meaning you could save $50 a week and start building equity simultaneously.

You might also be interested in: What you need to know - tips for first home buyers

Rental yields are up, but so is the cost for renters.

Strong yields are great news for investors, but they also signal one thing loud and clear: renters are paying top dollar. That's why rentvestors, who rent where they want to live and buy where it's more affordable, are rethinking the numbers.

Buying in high-yield areas doesn't just make sense for investors. First home buyers and renters can also take advantage, especially in suburbs with:

• Affordable house prices under $600K

• High rental competition

• Long-term infrastructure growth

Explore yield-rich opportunities and compare suburbs with the Aussie Property Experience.

Home loan rates are holding steady, and some fixed rates are dropping.

Interest rates may have spiked in recent years, but things are shifting. Some lenders are offering competitive fixed rates again, giving buyers a sense of stability even in a changing economy.

This means you could lock in a rate that makes budgeting easier and ensures you know what you're paying for the next few years, which is a luxury renters often don’t get.

Want to run the numbers? Try our home loan repayment calculator* to see how your weekly mortgage costs compare with your rent.

An Aussie Broker can show you what's possible.

You don't have to figure it all out on your own. A local Aussie Mortgage Broker can help you:

• Crunch the numbers based on your real income and lifestyle.

• Compare lenders and uncover lower-deposit options.

• Explain upfront costs like stamp duty, LMI and conveyancing.

• Factor in grants, concessions, and tax offsets (if you're investing).

We're here to fight for your great deal and show you what's within reach. Plus, with the Aussie app, you can track your borrowing power, property value, and even live equity all in one place.

Suburbs and regions where buying is currently lower than renting

In some suburbs, mortgage repayments are cheaper than rent.

According to an HTAG suburb-level report, Australia has pockets where average home loan repayments are lower than local rental prices.

We're not talking fixer-uppers in the middle of nowhere. We're talking about regional towns, growing hubs, and lifestyle-rich communities where buyers are coming ahead.

Here’s what we found:

Source: https://www.htag.com.au/

What factors make buying cheaper than renting?

In 2025, we're seeing a growing list of suburbs and regions where renters could come ahead by owning, even after factoring in deposits, stamp duty, and interest rates. Here’s how it’s possible, and how an Aussie Broker can help you do the same.

Lower property prices and higher rental demand.

It's a strange combo, but it's working in buyers' favour. Home values have remained steady in many parts of regional Australia and outer-city belts while rents have kept climbing.

Weekly rent is averaging $500–$650 in these areas.

But mortgage repayments on homes priced under $450K are often $100–$200 cheaper per week, depending on the loan setup.

Take places like Dubbo (NSW) or Whyalla (SA). Strong rental demand means investors are circling, but that same dynamic also opens the door for first-time home buyers.

Aussie Insight: With help from an Aussie Broker, you can compare weekly repayments to rent and see if the maths works in your favour.

First home buyer perks: grants and stamp duty savings

You're not starting from scratch. Most states and territories offer:

• First Home Owner Grants (up to $10,000 or more)

• Stamp duty exemptions or discounts (for homes under a certain price)

That's thousands shaved off your upfront costs. An Aussie Broker can help you understand what you're eligible for; you don't need to decipher government websites alone.

Aussie Insight: Use our government grants guide to see what help is available in your area.

Smaller deposit? You've got options.

Traditionally, a 20% deposit is ideal. But that's not always realistic, especially if you're juggling rent while saving. In 2025, more lenders are offering support for buyers with low deposits.

LMI waivers for eligible first home buyers and key workers.

Shared equity schemes, like the NSW Shared Equity Home Buyer Helper, let you buy with as little as 2%.

These aren't just niche offers. They could get you into your place sooner with the right guidance.

Aussie Insight: See if you qualify for low-deposit loans and LMI waivers.

Banks are competing harder for buyers.

The competition is heating up. That means more incentives are on the table:

• Up to $5,000 cashback from some lenders

• Fee waivers (application, valuation, ongoing)

• Discounted rates for new customers

Your Aussie Broker can compare over 25+ lenders to find the right deal and flag offers that could save you thousands.

Aussie Insight: Start comparing your options with a free^ appointment.

What to do next

Here's how to figure out if buying could be cheaper for you:

• Run your numbers with the borrowing power calculator*.

• Compare options with the mortgage repayment calculator*.

• Get a free property report to explore real-time value estimates and trends in suburbs you're interested in.

• Book a free^ chat with an Aussie Broker to explore your strategy and build a plan even if you're not ready to buy today.

How do you calculate your rent vs buy break-even point?

Finding your break-even point means looking at the full picture, not just your rent and mortgage. Here's how we help customers figure it out every day.

1. Use Aussie's calculators and tools.

Start with the numbers. Our mortgage repayment calculator* shows you what your home loan repayments might look like based on:

• Loan amount

• Interest rate

• Loan term

• Repayment type (principal & interest vs interest-only)

Then, compare that to what you currently pay in rent each week. If your projected mortgage comes in lower (or even close), it's worth exploring further.

You can also use our borrowing power calculator* to see what lenders may be willing to offer you based on your income and expenses.

Want help running the numbers? Book a chat with an Aussie Broker, and we'll do the work for you.

2. Factor in your deposit and loan costs.

Your deposit size will influence your break-even point and how soon you hit it.

• A larger deposit usually means a smaller loan and lower repayments.

• A smaller deposit might attract Lender's Mortgage Insurance (LMI) unless you're eligible for an LMI waiver or shared equity scheme.

Don't forget upfront costs like:

• Stamp duty (which may be reduced or waived for first home buyers)

• Legal and conveyancing fees

• Loan application or setup costs (which some lenders waive or refund)

A broker can help you access government grants, fee discounts, and even cashback offers that make owning more affordable sooner.

3. Consider ownership costs to rent.

Owning comes with extras like strata, insurance, and maintenance. But rent increases over time, while mortgage repayments can stay fixed. Buying gives you more control over your costs and builds equity.

What are the long-term upsides of buying?

With competitive rates, rising rents, and new buyer support, the long-term upsides of ownership are clearer than ever.

You build equity, not just pay bills.

Each mortgage repayment increases your ownership. Equity gives you more options, from renovations to buying again.

You get stability and peace of mind.

No more asking permission to have a pet. No surprise rent hikes. No uncertainty around lease renewals.

You set yourself up for growth.

According to KPMG's 2025 forecast, average property growth is tracking at 3.3% annually. Over time, that adds up, especially if you buy in an area tipped for infrastructure upgrades and demand.

Not ready to buy where you live? Consider rentvesting.

You don't have to buy where you live. Rentvesting lets you:

• Buy in a growth suburb you can afford (e.g. Dubbo, Rockhampton, Whyalla)

• Rent in a lifestyle location that suits your work, family or goals

• Use rental income to help cover the mortgage

Your Aussie Broker can help you structure the loan, understand tax benefits, and estimate future cash flow, all while building your property portfolio.

Final thoughts: Make 2025 the year to buy

It's easy to assume buying is out of reach, especially when rents are high, savings feel tight, and the market keeps moving. But in 2025, there are real opportunities where owning costs less than renting, especially in regional centres, outer metro areas, and high-yield suburbs.

From places like Dubbo, Rockhampton, and Whyalla to fast-growing cities like Melton and Armadale, the numbers are flipping. Mortgage repayments are matching or undercutting rent, and smart buyers are jumping in.

Here's what we'd suggest if you're ready to take that first step:

• Use the Aussie mortgage calculators to compare rent vs repayments.

• Grab your free property report to see the values and trends in the suburbs you're interested in.

• Explore rentvesting if you're not ready to live where you can afford.

• Book a free^ chat with an Aussie Broker to run the numbers and build a tailored buying plan.

Ready to run the numbers? Book a free^ chat with an Aussie Broker. We’re here to help you own.