Buy or Rent Calculator

Rent and save

Current rent (monthly) ($)
Current savings (monthly) ($)

Buy

Property purchase price ($)
Savings (available for deposit and fees) ($)
Loan interest rate (%)
Loan term (years)
State
Additional homeownership costs (monthly) ($)
Additional upfront fees (excluding LMI premium and stamp duty) ($)
Calculate
First Home Buyer?
New/Existing Home?

Result of your financial position in  years:

Buy now with Lenders Mortgage Insurance
After years, I will have in equity and savings
Buy later without Lenders Mortgage Insurance
It will take me a further year(s) and month(s) to save my 20% deposit. After years, I will have in equity and savings and will still owe on my loan.
Better off buying now rather than later by
Rent and save
After years, I will have in savings
Better off buying now rather than later by
Buy scenario calculations
First Home Owners Grant (if applicable): 
Stamp Duty scheme (if appliacble): 

Result

In  years
Buy now

Future value of equity
Rent and save

Future value of savings
If you buy now you will be better off by More

Note: Based on the current monthly savings entered, you would be unable to save the required 20% deposit to purchase a property without using LMI.

Note: Based on the current monthly savings and rent entered, you would be unable to meet the monthly loan repayment. Please refer to Assumptions – monthly loan repayments for further information.
Rent and save

Future value of savings
Buy now

Future value of equity
If you rent and save you will be better off by More

Note: Based on the current monthly savings entered, you would be unable to save the required 20% deposit to purchase a property without using LMI.

Note: Based on the current monthly savings and rent entered, you would be unable to meet the monthly loan repayment. Please refer to Assumptions – monthly loan repayments for further information.
Buy now with LMI

Future value of equity
Buy later

Future value of equity
Rent and save

Future value of savings
If you buy now with LMI you will be better off by

Using LMI to buy now will enable you to buy your own home  months sooner than if you continue to save for a 20% deposit.More

Note: Based on the current monthly savings entered, you would be unable to save the required 20% deposit to purchase a property without using LMI.

Note: Based on the current monthly savings and rent entered, you would be unable to meet the monthly loan repayment. Please refer to Assumptions – monthly loan repayments for further information.
Buy now with LMI

Future value of equity
Buy later

Future value of equity
Rent and save

Future value of savings
If you buy now with LMI you will be better off by

Using LMI to buy now will enable you to buy your own home  months sooner than if you continue to save for a 20% deposit.More
Buy now with LMI

Future value of equity
Buy later

Future value of equity
Rent and save

Future value of savings
If you buy later you will be better off by

It will take you a further  months to save for a 20% deposit.More

Note: Based on the current monthly savings entered, you would be unable to save the required 20% deposit to purchase a property without using LMI.

Note: Based on the current monthly savings and rent entered, you would be unable to meet the monthly loan repayment. Please refer to Assumptions – monthly loan repayments for further information.
Buy now with LMI

Future value of equity
Buy later

Future value of equity
Rent and save

Future value of savings
If you buy later you will be better off by

It will take you a further  months to save for a 20% deposit. More

Note: Based on the current monthly savings entered, you would be unable to save the required 20% deposit to purchase a property without using LMI.

Note: Based on the current monthly savings and rent entered, you would be unable to meet the monthly loan repayment. Please refer to Assumptions – monthly loan repayments for further information.
Buy now with LMI

Future value of equity
Buy later

Future value of equity
Rent and save

Future value of savings
If you rent and save you will be better off by More

Note: Based on the current monthly savings entered, you would be unable to save the required 20% deposit to purchase a property without using LMI.

Note: Based on the current monthly savings and rent entered, you would be unable to meet the monthly loan repayment. Please refer to Assumptions – monthly loan repayments for further information.
Buy now with LMI

Future value of equity
Buy later

Future value of equity
Rent and save

Future value of savings
If you rent and save you will be better off by More

Note: Based on the current monthly savings entered, you would be unable to save the required 20% deposit to purchase a property without using LMI.

Note: Based on the current monthly savings and rent entered, you would be unable to meet the monthly loan repayment. Please refer to Assumptions – monthly loan repayments for further information.
Buy now with LMI

Future value of equity
Buy later

Future value of equity
Rent and save

Future value of savings
If you buy now with LMI you will be better off by More

Note: Based on the current monthly savings entered, you would be unable to save the required 20% deposit to purchase a property without using LMI.

Note: Based on the current monthly savings and rent entered, you would be unable to meet the monthly loan repayment. Please refer to Assumptions – monthly loan repayments for further information.

Assumptions – current as at 5 April 2017

Editable assumptions
Home Price Appreciation rate (HPA)
% p.a.
The default assumption of 2.5% p.a. is an estimate of prospective long term capital only property growth estimated based on historical national performance. You may edit this assumption.
Investment return rate
% p.a.
The default assumption of 2.5% p.a. is an estimate of a generic investment portfolio that has risk-return characteristics consistent with real estate in the long term. You may edit this assumption.
Inflation rate
% p.a.
By default, the inflation rate is assumed to be 2.5% p.a. This assumption is set at the mid-point of the Reserve Bank of Australia's 2–3% p.a. target range for price inflation. The amount you save each period and the ongoing ownership costs are assumed to increase with price inflation each period. You may edit this assumption.
Rental increase rate
% p.a.
The default assumption of 2.5% p.a. is an estimate of prospective long term rental growth assuming a stable price-to-rent ratio in the long term. You may edit this assumption.
Scenarios:
Base LVR 80% or lower
Quantifies the benefits of:
  • buying a property now, versus
  • renting and saving indefinitely.
by quantifying and comparing the net savings and equity accumulated after a certain period of time under each scenario.
Base LVR greater than 80%
Quantifies the benefits of:
  • buying a property now using LMI, versus
  • continuing to rent and save for a 20% deposit, versus
  • renting and saving indefinitely.
by quantifying and comparing the net savings and equity accumulated after a certain period of time under each scenario.
Input field explanations:
Current rent (monthly)
Recurring monthly rental payments. Assumes the amount you enter as rent per month (as adjusted for inflation) will continue to be paid each month throughout the period covered by the calculation. The rental increase rate is applied to the rent amount.
Current savings (monthly)
Recurring monthly savings. Assumes the amount you enter as savings per month (as adjusted for inflation) will continue to be saved each month throughout the period covered by the calculation. The investment return rate is applied to the savings amount.
Property purchase price
The purchase price of the home at the current time. Under the deferred purchase scenario, this grows at the house price appreciation rate until the borrower has saved a minimum 20% deposit.
Savings (available for deposit and fees)
The amount of savings you have available for the deposit and costs. This is used to determine the base loan amount and base LVR. Assumes that the total amount which has been saved will be applied towards the property purchase costs including the purchase deposit and the associated upfront costs such as stamp duty. The remainder of the property purchase costs are covered by the loan amount.
Loan interest rate
The rate of interest applicable to your loan. Assumed to be the annual nominal rate of interest, compounded monthly and to remain the applicable loan interest rate over the entire term of the loan.
Loan term
The term applicable to your loan.
State
The state where you will purchase the property. This is used to determine the amount of stamp duty payable.
Additional homeownership costs (monthly)
This includes ongoing costs such as council rates, property maintenance etc.
Additional upfront fees (excluding LMI premium and stamp duty)
This includes upfront costs such as loan establishment fee, conveyancing fees etc.
Calculation fields and other assumptions:
Monthly loan repayments
Where the minimum mortgage repayment is more than the rent and savings amounts you enter (as adjusted for inflation), the calculator assumes the minimum loan repayments will still be made (ie. the borrower will reduce other expenses necessary to meet the minimum mortgage repayments). Please note - this additional amount has not been factored in to the rent and save scenario.

Where the minimum loan repayment is less than the rent and savings amounts you enter (as adjusted for inflation), the calculator assumes the excess amount will be deposited and saved.
Total stamp duty
Calculated based on the property purchase price and state of purchase, and deducted from the deposit. In all cases, assumed that the borrower is an owner occupier and that the purchased dwelling will be their principal place of residence.

Under the deferred purchase scenario, stamp duty is calculated on the future assumed purchase price.

The rates and thresholds for stamp duty calculations are sourced from the different local State and Territory revenue office websites. Refer tofirsthome.gov.aufor details.
Total LMI premium
LMI premium payable based on base loan amount and base LVR. LMI premium is based on Genworth standard LMI premium rates. LMI premium rates may vary by lender.
Base loan amount
Property purchase price less savings (available for deposit and fees), stamp duty and additional upfront costs.
Capitalised loan amount
Base loan amount + LMI premium (if payable)
Base LVR
Base loan amount / property purchase price. The base LVR is used to determine the LMI premium. If LVR <=80%, assumes that no LMI premium is payable (i.e. that the lender does not require the borrower to take out LMI).
Capitalised LVR
Capitalised loan amount / property purchase price
Timing assumptions
All recurring transactions are assumed to occur on a monthly basis at the end of the month.
  • Mortgage repayments are assumed to occur immediately after the accrued loan interest has been charged to the loan.
  • All months are assumed to be of equal length, and one year is assumed to contain exactly 12 months. Therefore, this assumes that a year has 364 days.

Disclaimer

This calculator is intended to provide a general indication of the long-term economic differences between continuing to rent, saving a 20% deposit and purchasing a home, or purchasing a home now with less than a 20% deposit if Lenders Mortgage Insurance (LMI) is used. Economic conditions may differ from the assumptions and your personal circumstances may turn out differently from the outputs of the calculator.
LMI protects the lender against a loss should the borrower default on their home loan and there is a shortfall following a sale of the security property. The cost of the LMI premium is typically passed on by the lender to the borrower. LMI should not be mistaken for Mortgage Protection Insurance, which covers a mortgage in the event of death, sickness, unemployment or disability. The output of the calculator is not an offer to any person to acquire LMI, credit or any other financial product nor an approval for LMI, credit or any other financial product.
The calculator and the results provided are generic and do not take into account your personal circumstances. The calculator is a guide only and is not intended to be relied upon for the purposes of making a decision in relation to credit or a financial product. The user should obtain professional legal, accounting, tax, investment or other financial specialist advice before making any financial decision.
Except to the extent taken into account in the amounts entered in the ‘Other upfront costs’ section, the calculator does not take into account any First Home Owners Grant or other concessions, grants or any establishment, maintenance, discharge or other fees which may be applicable. The calculator assumes that the cost of the LMI premium (if applicable) is passed on by the lender to the borrower.
No representation is made as to a borrower’s capacity to borrow funds or to service a loan.
© 2017 Genworth Financial Mortgage Insurance Pty Limited ABN 60 106 974 305.

Calculation

Other scenario calculations
Value
Total stamp duty payable
Total LMI premium
Base loan amount
Capitalised loan amount
Base LVR
Capitalised LVR
Monthly loan repayment

 

Using LMI to buy now will enable you to buy your own home  months sooner than if you continue to save for a 20% deposit.

 

It will take you a further  months to save for a 20% deposit.

 

Scenario is outside of Genworth’s LMI Underwriting Guidelines. Please refer to your lender or broker for further assistance.

 

Based on the current monthly savings entered, you would be unable to save the required 20% deposit to purchase a property without using LMI.

 

Based on the current monthly savings and rent entered, you would be unable to meet the monthly loan repayment.

For the purposes of the 'buy now' and 'buy later' scenarios, it has been assumed that this additional amount will be met by you.

Please note - this additional amount has not been factored into the 'rent and save' scenario.

Additional homeownership costs (monthly)

This includes ongoing costs such as council rates, property maintenance etc.

Additional upfront fees

This includes upfront costs such as loan establishment fee, conveyancing fees etc.