Buying a home
Rent vs buy calculator
Find out what size home loan your current rent could support, and compare the deposit pathways that could take you from renting to owning.
What it shows
From rent to repayments.
01
Your rent as a loan
Work backwards from what you pay in rent to the home loan the same repayment could support at the rate you choose.
02
Your deposit pathways
Compare buying with a 20% deposit, a smaller deposit with lenders mortgage insurance, or a 5% deposit with a government or family guarantee.
03
The costs beyond the loan
Owners pay stamp duty, council rates, insurance and maintenance that renters don't. Keep them in mind when you compare the two.
Worth weighing
Buying isn't always better. Renting isn't dead money.
The right answer depends on your finances, your plans and where you want to live. These are the questions we help first home buyers work through.
What owning really costs
Beyond the repayment, owners pay stamp duty and legal costs upfront, then council rates, insurance, maintenance and, for apartments, strata levies. First home buyers may qualify for stamp duty relief, which can change the numbers considerably.
How big a deposit you need
A 20% deposit avoids lenders mortgage insurance, but it isn't the only way in. Eligible first home buyers may be able to buy with 5% through the Australian Government's Home Guarantee Scheme, and a family member can sometimes offer their property as security instead of cash.
Rentvesting
Some people keep renting where they want to live and buy an investment property where they can afford to. It can be a way into the market sooner, with its own tax and cash flow considerations to plan for.
Renting and buying
Questions worth answering first.
What people ask us most when they're deciding whether to keep renting or buy. Got another? Book a chat.
Is it better to rent or buy in Australia?
It depends on your situation. Buying builds equity and gives you security, but comes with upfront and ongoing costs. Renting offers flexibility and can free up money to save or invest. The right choice fits your finances and your plans for the next five to ten years.
How much deposit do I need to buy a home?
Lenders generally prefer a 20% deposit to avoid lenders mortgage insurance. Many accept 5 to 10% with insurance, and eligible first home buyers may be able to buy with 5% and no lenders mortgage insurance through the Home Guarantee Scheme.
Can my rental history help me get a home loan?
Some lenders will accept a consistent rental history as evidence that you can manage regular repayments, which can help if your savings history is short. Policies vary, so it's worth asking which lenders take this approach.
How is a home loan repayment different from rent?
Rent pays for somewhere to live. A home loan repayment covers interest plus principal, and the principal part builds your equity. Owners also carry costs that renters don't, like rates, insurance and maintenance.
What is rentvesting?
Rentvesting means renting the home you live in while owning an investment property somewhere else. It can help you get into the market sooner, but it changes your tax position and cash flow, so it's worth getting advice first.
Keep exploring
More calculators.
First home
First Home Buyer Guarantee
Estimate a 5% deposit buying range and unlock applicable grants and concessions.
Use the calculatorRepayments
Home Loan Repayments
Compare monthly, fortnightly and weekly repayments and the interest and time saved.
Use the calculatorInvesting
Investment Property Strategy
Model cash to complete, weekly holding cost and the equity pathway to another purchase.
Use the calculatorReady to swap rent for a home loan?
We'll show you what you could borrow, which deposit pathway suits you, and the grants and schemes you may qualify for. No pressure, no obligation, no cost.
