Australia’s residential property market continues to evolve, and Australians continue to struggle with the same dilemma – whether to rent or buy a home. While the choice between renting and buying is clearly determined by multiple factors, the most critical of these factors include the flexibility of one’s lifestyle, long-term wealth planning & goals, government incentives, and current mortgage rates.
VOXFIN’s experts are here with the 2025 update that highlights the changes in the housing market of Australia and their implications for you as an aspiring home buyer. Whether you’re a first-home buyer, an investor, or a renter gearing up for the next step, we can help you with access to Australia’s most competitive home loans.
What’s more special? Guidance at every step and fast 24-hour pre-approvals. The first step is to understand your borrowing power. We will help you explore various first home buyer programs and compare 40 lenders to find your ideal rate.
The Current Australian Mortgage Market
Over the past couple of years, both the mortgage and rental markets in Australia have seen some significant changes.
- According to the Reserve Bank of Australia (RBA) and Canstar, the average variable home loan rate in 2025 ranges between 5.24% to 6.8%, whereas the 1–3 year fixed rates sit around 4.79% – 6.1% p.a.
- On the other hand, rental prices continue to soar at a consistent rate with a reported rise of 9–14% in annual rent across most capital cities. As the national rental vacancy rate continues to hover around 1.2%, a record low, renters are now left with fewer choices at higher costs.
Recently, homeownership has become a decision to reconsider for Australians. The combination of high rents and stabilising property prices will continue to influence the inclination of people towards buying rather than renting. Those who are now eligible for first-home buyer loans and can benefit from the 5% deposit scheme are realising that their first step onto the property ladder has now become more achievable than ever!
Wondering if buying will beat renting in your case?
Chat with a VOXFIN broker now to assess what could be your best move!
Key Considerations – Renting vs Buying
1. Cost of Renting Vs Buying
Renting might appear cheaper in the short term, but with rising rents and limited availability, the gap between renting and owning has narrowed.
Owning a home allows you to lock in your repayments and protect yourself from future rent increases. And with competitive rates still available, buying could provide more long-term financial stability than continuing to rent.
At VOXFIN, our brokers compare offers from 40 lenders to find the lowest rate tailored to your situation, even for complex or low-doc borrowers.
2. Property Value Growth
Property values across Australia have shown steady growth of 4–6% annually in major cities despite recent rate rises. While short-term fluctuations are normal, owning a property gives you the chance to benefit from capital appreciation and build wealth over time.
Renting, on the other hand, offers no return; your monthly payments go toward someone else’s mortgage.
3. Building Equity
When you buy a home, every mortgage payment increases your equity, your share of ownership in the property. That equity can later be used for refinancing, investment property purchases, or home renovations.
In contrast, rent payments don’t build any financial assets or security. At VOXFIN, we help clients strategically plan their home loans so that equity growth works in their favour, setting them up for future financial freedom.
4. Government Incentives and the 5% Deposit Scheme
If you’re a first-home buyer, there’s good news. The Australian Government continues to support eligible buyers through schemes such as the First Home Guarantee (5% deposit scheme), which allows you to purchase a property with just a 5% deposit and no Lenders Mortgage Insurance (LMI).
There’s also the First Home Owner Grant (FHOG) and various stamp duty concessions available depending on your state. These incentives can significantly reduce the upfront costs of buying, helping first-time buyers move from renting to owning sooner.
At VOXFIN, we specialise in guiding first home buyers through these programs, ensuring you don’t miss out on grants or lender discounts that could save you thousands.
5. Flexibility Vs Stability
Renting provides flexibility, ideal for those unsure where they’ll live long-term or whose work requires mobility. Buying offers stability and control. You can personalise your home, build equity, and enjoy peace of mind knowing your repayments benefit you, not your landlord.
If you’re planning to stay in one location for at least three years, buying a home can often be the smarter financial move.
Why VOXFIN Is an Ideal Partner for a Home Loan
- Over 40+ lender partnerships
- Tailored solutions for all types of borrowers
- 24-hour pre-approval guarantee
- No upfront fees & hidden costs
- Specialist expertise in rare/complex cases
- Consistent 4.9-star customer rating
- Australia-wide service
- Deep market knowledge combined with personal guidance
The Final Thought
The decision to rent or buy depends on your lifestyle, goals, and financial readiness. However, with growing government support and long-term property growth opportunities against surging rents, buying a home in 2025 can be a smart financial move. At VOXFIN, we are here to make the process simpler, faster, and more transparent. No matter you’re planning to buy or refinance your first home, or explore and compare options, we provide you with the best home loan solution tailored to your needs.
If you’re ready to take the next step?
we simplify your journey from pre-approval to settlement.
Talk to a VOXFIN expert today for a no-obligation home loan consultation.
You May Also Ask
Is buying a home still worth it with interest rates above 6%?
Yes, because while rates are higher, rents are rising even faster. Plus, buying lets you build equity and gain from long-term property growth. A good broker like VOXFIN can still secure competitive fixed or split-rate options to keep repayments stable.
How does the 5% deposit scheme actually work for first home buyers?
The First Home Guarantee lets you buy with only a 5% deposit, and the government covers your LMI. It’s perfect for those with strong income but limited savings. VOXFIN helps you check eligibility and apply with participating lenders.
Should I wait for interest rates to drop before buying?
Not necessarily. Property prices tend to rise once rates fall, meaning you could end up paying more later. If you can afford repayments now, buying sooner can help you secure today’s prices and refinance later when rates drop.
What if I have a low income or inconsistent documents?
You still have options. VOXFIN offers low-doc and specialist home loans for self-employed and contract workers. We match your profile with lenders that focus on real affordability, not just traditional criteria.
Is renting ever the smarter choice?
Yes, if you’re relocating frequently, saving for a larger deposit, or not ready for a long-term commitment. But if your rent exceeds what a mortgage would cost, it’s time to talk to VOXFIN about ownership options.
