Is buying your own home worth it?
One of our top mortgage brokers, Luise Rose, did the maths for a one bedroom flat in Melbourne.
| Buying | Renting |
Cost | $332/week | $420/week |
Loan | $237,500 | N/A |
Other Costs | Strata: $40/week Rates: $23/week | Renters move every 1.8 years^ on average; removal costs vary. |
Deposit/Bond | $12,500 deposit + $2,500 purchase costs (inspections, loan fees, etc.) | $1,820 bond |
Total Weekly Cost | $332/week + Strata & Rates = $395/week | $420/week |
Ownership | Own it in 30 years | Never own |
Learn more about home loans with these guides
Do you qualify for a 5% deposit home loan?
“Getting out of the rental cycle is more achievable than you might think,” says Luise. “Our mortgage brokers help a lot of buyers use the First Home schemes because saving a deposit isn’t easy right now. If you qualify for a First Home scheme you may only need a 5% deposit.”
Are there advantages and disadvantages to renting?
Renting offers flexibility. You’re also not up for any home maintenance, which can be a financial relief.
However, renting misses out on the long-term financial benefits of home ownership. Rent payments don’t build equity, and you’re exposed to annual rent hikes. In the long run, renting can end up being more expensive without providing you with a tangible asset.
Buying a home can mean long term security:
One of the biggest advantages of buying a home is your sense of ownership. No one can tell you what colour you can paint your wall - and yes, you can probably get a pet. Hang your pictures up using nails, not blu-tak - and maybe install a dishwasher or air conditioner - or maybe not.
When you own your own place, it’s up to you - and that’s entirely the point.
If you’re ready to break the rental cycle, call one of our expert mortgage brokers like Luise.#
Compare & SaveWhat's new in home loans - February 2026
RBA rate hike: The RBA lifted the cash rate to 3.85% this month. While we had three cuts in 2025, offering some relief after thirteen rate hikes since May 2022, this new direction is worrying Australian mortgage holders.
Cheaper to borrow: A higher cash rate can lower your borrowing power - but working with your broker to find the right lender can offset the damage. Not all lenders are created equal. Ask your mortgage broker which ones really want your business.
Fixed rate ending? Now’s the time to speak with a broker at Compare Club about your next steps, so you’re not hit with a staggeringly high revert rate.
Things You Should Know
This guide is opinion only and should not be taken as financial advice.The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.
