It’s a question that pops up a lot: is it better to pay rent or pay off a mortgage? The answer is one that divides a lot of the community, especially when you look at the bare facts – like how much you have to pay on a weekly basis in 2025. But when you zoom out and look at the bigger picture, there’s more to it than just that. How many rentals will you move between in the next decade? How do rates compare in 2055? And wouldn’t you love to just put a picture hook in the wall without asking for approval?
Read more: Five tips for first-time home buyers
Average mortgage repayments in Australia
The latest ABS figures for Australian mortgage repayments show few surprises. NSW has the highest average rates, with the standard weekly repayment at $1151. Of course, that’s a state average — mortgages in Sydney are likely to be a lot higher than in Newcastle, Tamworth or Bega. This is the same across other markets, with capital cities higher than regional areas.
Knowing your likely mortgage payment is an important part of any loan application. Use our free repayment calculator to get an idea of how much your outgoings would be for different loan amounts. When things start to look like they might be a bit stressful, it’s a good indication that you might know your limit, even if a lender is offering you more.
Read more: 13 Australian Home Loan & Mortgage Statistics for 2025
| Location | Average weekly repayment | Average monthly repayment | Average annual repayment |
| NSW | $1,151 | $4,987 | $59,844 |
| ACT | $922 | $3,996 | $47,952 |
| Qld | $902 | $3,908 | $46,896 |
| Vic | $896 | $3,884 | $46,608 |
| WA | $850 | $3,683 | $44,196 |
| SA | $824 | $3,569 | $42,828 |
| Tas | $672 | $2,910 | $34,920 |
| NT | $660 | $2,862 | $34,344 |
Source: ABS
Average rent payments in Australia
National data for rent payments is slightly different than mortgage averages because it’s done by city rather than state. Even in that there’s disagreement between sources, perhaps based on simple things like how you define ‘Sydney’. Is it just the CBD? Or Greater Sydney?
The figures below are from Core Logic, but Real Estate lists the average weekly rent for a unit in Sydney at $950 (and including houses would bump that figure even higher) – that works out to $49,400 a year.
Elsewhere in NSW, Real Estate lists the median weekly rental price in Newcastle as $875 (for a house) and $680 (for a unit), in Raymond Terrace at $545 (house) and $430 (unit) and in Maitland at $530 (house) and $440 (unit).
| Location | Average weekly rent | Average monthly rent | Average annual rent |
| Sydney | $773 | $3,350 | $40,196 |
| Canberra | $667 | $2,890 | $34,684 |
| Brisbane | $658 | $2,851 | $34,216 |
| Melbourne | $604 | $2,617 | $31,408 |
| Perth | $695 | $3,012 | $36,140 |
| Adelaide | $611 | $2,648 | $31,772 |
| Hobart | $554 | $2,401 | $28,808 |
| Darwin | $636 | $2,756 | $33,072 |
Source: CoreLogic
Mortgage vs rent payments
No matter where you are in the country, it’s cheaper to pay rent than pay off a mortgage, so why the rush to buy a house? There are lots of financial and personal reasons that people want to buy.
- At some point, your mortgage will be (or should be) paid off – meaning no more payments, while rent demands continue
- There’s something comforting about knowing you’re paying off your own mortgage rather than someone else’s
- Property manager inspections can feel more intrusive and judgemental than visits from the in-laws
- You don’t have to move because the landlord wants to hike the rent, move back in or sell the property (which has both emotional and financial stresses with packing, removalists and taking time off work for inspections)
- Although interest rates can make mortgages go up, as we’ve seen in the past few years, the increase is generally smaller than with rent increases
- When interest rates drop, people with mortgages tend to notice the benefits sooner than renters
- Community grows when you get to know your neighbours, which is harder to do when you have to move every year or two
- You get a lot more freedom to do what you want in your own property, from small things like hanging pictures to building an extension when you’re expecting a new arrival
- You can build equity with a house, giving you the opportunity to buy investment properties
- Having your own house means you can downsize easily when the time comes
Perhaps the most important part of owning your own property is when you retire. Having your own place, hopefully paid off, is a lot less stressful than having to use your super to continue paying rent. Applying for properties on a fixed income can be particularly stressful, too.
How does home equity work?
Learn more about the power of equity in this episode of Talk Property To Me:
Getting on the property ladder
Interested in finding out more about your borrowing power. Get a free online quote or call our team on (02) 49 614 985 to see what you could qualify for.
