It’s getting cheaper to buy than to rent, but if you’re renting you could be missing out on a lot more than just lower weekly payments.
Rent vs Own
Did you know that most of your rent probably helps someone else buy a home? But now there’s some good news to help more people use their own money to buy their own home.
APRA have changed the rules so you can borrow more
APRA (the authority that supervises banks) have recently told lenders they can change the way they work out your affordability. Now a couple with $75k combined income and no debts can borrow about $60k more than they could previously – for a combined income of 90k its 80k more, and so on*. So if you’ve ever been told, or thought that you can’t afford a loan, it’s probably time to look again.
Interest rates are at an all-time low
But lower interest rates don’t just mean lower payments. Lower rates also mean you will pay off your loan faster even at the minimum payment. To see how this works, scroll down and change the interest rate below the graph to watch what happens to the curve. The straighter the curve, the less you will owe after the same amount of time.
You’ll get more equity sooner
So you can see how with lower rates you’ll get to own more of your home sooner – even if your house price doesn’t change.
If the market rises, you’ll own even more of your home.
So if you’re currently renting, then not buying a home could be costing you a lot. To see how much, put your own numbers into the calculator below.
Having a re-think?
If you’ve been re-thinking whether to own your own home compared to renting, we’re making it a lot easier to take the next step.