New analysis from Compare the Market reveals that in certain suburbs across Australia, monthly mortgage repayments are now lower than rent, offering a compelling case for tenants to transition to homeownership.

In South Australia, apartment buyers are financially better off than renters in metropolitan Adelaide, while 11 regional towns, including Berri, Port Augusta, Risdon Park, and Whyalla, also favour buyers.

Victoria’s unit market presents a similar opportunity, with mortgage repayments in Melbourne’s CBD averaging $688 per month less than renting.

Andrew Winter, property expert at Compare the Market, attributes this to slower property price growth compared to rental increases, creating a unique affordability window for buyers.

In Queensland, it is now cheaper to buy than rent in Spring Hill and Goodna, with 68 suburbs in regional Queensland, including Ashmore on the Gold Coast, offering similar advantages.

Meanwhile, in Greater Sydney, buyers in Harris Park, Rosehill, Regents Park, Liverpool, Warwick Farm, Villawood, and Ultimo could also save by purchasing rather than renting.

For mortgage lenders, these insights highlight a shift in affordability that could drive increased demand for home loans.

As potential buyers weigh their options, tailored mortgage solutions—such as low-deposit loans, first-home buyer incentives, and competitive fixed-rate products—could help bridge the gap between renting and homeownership.

Lenders should also factor in potential interest rate fluctuations and lending criteria adjustments to support borrowers making the transition in a dynamic market.