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Rent vs Buy Repayments Borrowing power Schemes Market Buyer gaps Before you buy Outlook Get your numbers
Melbourne, VIC · August 2026

Rent, or buy?
See the real breakeven.

Most calculators compare a repayment to a rent and stop there. This one tracks your full net position — cash out vs. equity in — year by year, for Melbourne buyers.

Houses — Compare the Market, Aug 2026

Median house ≈ $978,000. Monthly mortgage ≈ $4,688 vs. rent ≈ $2,829. Roughly 66% cheaper to rent a house in Melbourne right now.

Inner-Melbourne units — Cotality, Mar 2026

Inner-city units are now roughly $322/month cheaper to own than rent (20% deposit, 25-year loan, ~6.1–6.4% variable) — before rates, strata and maintenance.

Net position — buying Net position — renting
Simplified model for illustration — here's exactly what it does and doesn't account for:
  • Uses the deposit %, interest rate and capital growth rate you enter above, applied in a straight line every year. Try 0% or a negative number — or the downturn button — to see what happens if prices fall instead of rise.
  • Excludes stamp duty, land tax and selling costs (agent fees, marketing) from the buying side. Victoria generally exempts your main home from land tax, but stamp duty on an established home is a real, often five-figure cost — check the Schemes calculator above for exemptions or concessions you may qualify for.
  • Assumes the renter does not invest the deposit they didn't spend, or any month where rent costs less than the mortgage would — investing that difference could change the renting outcome shown here.
  • No allowance for interest-only periods, offset accounts, refinancing, or a renter's bond/moving costs.
Get independent financial advice before treating this as a decision.
Market snapshot

Melbourne, right now.

A soft patch, not a slump — population growth and a structural undersupply are widely expected to put a floor under values.

$936,528
Median house price
▼ 3.4% YoY
$632,021
Median unit price
▼ 1.5% YoY
4.35%
RBA cash rate
Held 11 Aug 2026
<50%
Auction clearance
Below half since May

Bank economists describe conditions as steady rather than dramatic: “higher mortgage repayments and weak confidence are likely to keep demand subdued,” while “low unemployment, population growth and construction constraints should place a floor under values.” A national shortfall of roughly 250,000 dwellings won't close within a decade.

Mortgage calculator

Mortgage & monthly repayment.

Whole-of-market, not just the lender whose branch you walk past — plus a stress test at higher rates.

Lender comparison at your loan amount
LenderRateMonthly repaymentTotal interest
What if rates move?

Lender rates as reported late July 2026. The +3.0% scenario mirrors the APRA serviceability buffer lenders must apply when assessing whether you can afford a loan.

Borrowing power

What you could qualify for.

An estimate of the loan a lender might approve: net income, less living costs and debts, assessed at your rate plus a 3-point buffer.

net monthly income

Illustrative only. Income taxed on the 2024–25 resident scale plus 2% Medicare levy, split evenly for couples; a $200/month loading is added per dependent. Get a formal assessment from a lender or mortgage broker before relying on this figure.

Government support

Schemes & eligibility.

Five Victorian and federal schemes, five different rules, scattered across as many websites.

First Home Owner Grant
$10,000 tax-free for new homes up to $750,000.
Stamp duty relief
Full exemption up to $600,000 (worth up to $31,070); sliding concession to $750,000.
Off-the-plan concession
Excludes construction costs from dutiable value; available until 20 Oct 2026.
5% deposit, no-LMI scheme
Price caps $950,000 (Melb/Geelong) / $700,000 (regional VIC), no income cap.
Help to Buy (federal)
Govt contributes 30–40% on a 2% deposit; income caps $100k single / $160k couple.
Family Home Guarantee
2% deposit for eligible single parents, $950,000 Melb/Geelong cap.
Check what you're eligible for
The trust gap

What buyers say is missing.

A 2026 Finder survey of 1,010 property buyers found 27% had experienced questionable conduct from a real estate agent.

Reported issueShare of buyers
Inflated price expectations used to win the listing10%
Significant underquoting9%
Phantom offers (claimed rival bids that don't exist)8%
Fake bidding at auction8%
Misleading or digitally enhanced photos8%
Failure to disclose zoning or legal issues6%
Conflicts of interest6%
Misleading building & pest reports5%
Illegal cash deposits4%

Finder's head of consumer research put it plainly: “Agent guide prices are often a fantasy designed to push as many buyers as possible into the system.” Regulators are responding — NSW passed a fivefold increase in underquoting penalties in 2026, and Victorian Consumer Affairs has taken agencies to court over alleged underquoting — but enforcement is reactive.

Underneath the deliberate tactics, everyday service gaps are just as common: inconsistent communication, opaque fee structures, and uneven service outside the inner suburbs. Australia's own proptech sector describes itself as “a patchwork, not an ecosystem” — no mainstream tool combines an independent price check with a transparent rent-vs-buy view and a plain-language read on agent behaviour, in one place, before an offer is made.

Buyer's checklist

Points to consider before buying.

The practical checklist that sits alongside the numbers — most of these cost nothing to check.

Get pre-approval before you fall in love with a property
A conditional pre-approval tells you your real budget and speeds up an offer.
Budget for the costs beyond the price
Stamp duty (unless exempt), inspections, conveyancing fees, LMI over 80% LVR, and moving costs.
Order a building and pest inspection
Especially on older homes — a few hundred dollars now against a structural surprise later.
Have a conveyancer review the contract before you sign
Section 32 disclosures, easements, zoning, and special conditions are easy to miss reading alone.
Know your cooling-off rights
In Victoria, private-treaty sales generally carry a 3-business-day cooling-off period; auctions typically don't.
Stress-test the mortgage, not just today's rate
Lenders assess you ~3 points above the advertised rate — run that scenario yourself above.
Add up the ongoing ownership costs
Council rates, water, insurance, and — for apartments — owners corporation fees.
Research the suburb, not just the listing
Flood/fire overlays, planned developments, transport links, and recent comparable sales.
Check the quote against comparable sales
One in four buyers report an agent tactic around price — verify recent sales yourself.
Check what government support you qualify for
Run the checker above before assuming a grant or concession does or doesn't apply.
Looking ahead

Market outlook, 2026–2027.

Every forecaster we reviewed agrees on the trigger to watch: rate cuts, expected from around mid-2027.

ForecasterCall
Domain (FY27, combined capitals)−2.5% to +1.5%; recovery expected from mid-2027
ANZ ResearchCapital prices ▼4.3% (2026), ▼3.4% (2027); ≈10.6% peak-to-trough
Melbourne houses (FY27)▼8% to ▼4%
Melbourne units (FY27)▼1% to ▼3% — outperforming houses
Oxford Economics (to June 2027)+21% houses / +20% units — forecasts diverge sharply by horizon

Victoria's Housing Statement targets 800,000 new homes over ten years (2024–2034) — roughly 80,000 a year — but two years in, delivery is tracking closer to 60,000 a year. That shortfall is a structural tailwind for prices even while affordability stays stretched. Negative gearing restrictions and CGT changes on established properties are scheduled from 1 July 2027, already shaping investor and vendor behaviour ahead of the deadline.

Our approach

Why the workings are always on screen.

Numbers before narrative

Every screen opens on the calculator or figure you came for — not a marketing headline standing in front of it.

Show the work

Every estimate lists the rate, growth assumption or rule behind it, so it can be checked line by line.

One buyer file, not six tabs

Budget, eligibility and mortgage comparison read from the same inputs instead of repeating yourself.

Plain language, not jargon

LVR, offset accounts and stamp duty concessions get a plain explanation inline.