Buy Now Or Save More Calculator

Loan details

How big is your deposit? ?
What is your purchase price? ?
Where are you buying?
How much rent are you paying? ?
How much can you save? ?

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Talk to one of our mortgage brokers about your situation: Yes No  

Is it better to buy a home now or to save a larger deposit?

By saving a 20% deposit, you can avoid paying Lenders Mortgage Insurance but by delaying your purchase you’ll pay more in rent. In the meantime, house prices may grow out of your reach.

Find out which option is best for you using our simple calculator.

Tips for using this calculator

Are the properties in your area increasing in value? The long term average growth for most capital city locations is around 8% per annum. Our calculator will use the average growth in your state over the last 25 or 50 years.

Hover your mouse over the ‘?’ icons in our calculators to find out additional information about how to use the calculator.

When is it better to save rather than buy?

You’ll find that in most cases, it makes more sense to buy now rather than to save a larger deposit. This is because the cost of LMI is typically much less than the growth rate of a property.

However, if your local area isn’t increasing in value then there’s no harm in waiting. You can delay your purchase while you sure up your financial position. Just make sure you have a savings plan and stick to it!

If the market is falling then of course, don’t buy! Waiting will obviously leave you in a better position but try not to listen to the media. Instead you can determine the market direction by looking at reliable sources such as RP Data, Residex and Australian Property Monitors (APM).

Our mortgage brokers have a paid subscription to APM and if you’re one of our clients, we can provide you with free property reports and data. Please call us on 1300 889 743 or enquire online to find out more.

How can I find the lowest LMI premium?

Not every lender has the same LMI premium rates. We’ve created a mortgage insurance calculator which compares lenders and lets you know if you’re eligible for any LMI discounts/waivers.

Can I borrow 100% with no LMI?

Yes, you can. However, you’ll need the support of your parents guaranteeing your loan. The lender will use your parents property as additional security for your loan so you won’t have to pay LMI.

You can read more about this option on our guarantor mortgage page.

Apply for a home loan today

Speak to one our expert mortgage brokers on 1300 889 743 or enquire online today and we can find out which lenders can approve your loan.

  • Ian

    Is it advisable to buy property now or save and invest in other sectors and buy the property later?

  • Hi Ian, depending on how much you are paying on rent you might be better of paying for your mortgage. I would recommend you to try our calculator above and also to speak to your financial planner or one of our mortgage broker to make a more informed choice.

  • Gayle Peters

    I am on a disability pension I saw a property for $249.000 I have $15,950 for deposit currently paying rent which is more than paying a loan off so where can I get some help in getting a loan?

  • Hi Gayle,
    You may qualify depending on if your deposit is enough to get you into the market in your state. Qualifying for the First Home Owners Grant (FHOG) would be helpful. We’d need to assess your income and expenses as well to confirm you can afford the loan as well as any expenses that you have.

  • GoranJ

    Your calculator showed that I’d be better off by close to $190,000 if I buy now than rent so I spoke with one of your brokers and they explained it all very well to me. Now I just need to save a bit to have a good deposit before I get a loan through you guys :)

  • Thanks for the comment, GoranJ. You can check out the saving for a home loan deposit page for some tips that you may find helpful. Hope to see you soon :)
    Here’s the link to the page:

  • GoranJ

    Thanks, same here :)

  • gary

    What requirements do we need to meet to qualify to use a personal loan as a deposit for a home loan?

  • Hey gary,

    To qualify, you must essentially meet the criteria for both a home loan and for a personal loan, so you must have:
    – A high income to afford both repayments.
    – Little existing debt (car loans, high credit card balances, etc).
    – A clear credit history.
    – Some savings to make up any shortfall.

    If you have a proven rental history then that will be preferred by the lender.

  • cac

    I’m looking to purchase 2 blocks of vacant land. The purchase price is $285k and building will need $400k on a fixed price contract. I only have 5% deposit right now so I want max LVR. I have a high income so should be okay with serviceability I suppose.

  • Hi, it may be easier for you to qualify if you can wait a few months to save up a deposit. You can also get a personal loan for the deposit and reduce the LVR. A guarantor can be helpful too so please call 1300 889 743 to discuss all this and more with one of our credit specialists.

  • Kitaab

    Will it be profitable to buy a property or rent a property over the long term?

  • I would strongly suggest you try our calculator This will take into consideration various factors such as your deposit, purchase price and the rent you are currently paying, among other factors. It will compare the cost of continuing rent vs the cost of buying a home. Of course, it doesn’t take into account ALL of your personal and financial situation so you should seek independent financial advice if need be.

  • Roxie

    I’m thinking of buying the property but not sure whether it is profitable or not. Is it advisable to buy property now or save and buy the property later?

  • Hi Roxie,
    Depending on how much you are paying on rent you might be better of paying for your mortgage. I would recommend you to try our calculator above and also to speak to your financial planner or one of our mortgage broker to make a more informed choice.
    Hope it helps!