It was cheaper to buy than rent a home in Australia last year, as the Reserve Bank cut rates to stave off a post-mining boom recession.
The average variable mortgage rate offered by the big four banks fell to a record low of 5.91% last September, a month after the RBA cash rate hit a record 2.5%.
That drove monthly mortgage repayments well below rental prices, especially for first homebuyers, who paid an estimated $1,700 a month on an average loan size of $291,200.
The last time average mortgage repayments dipped below average rental prices was between late-2008 and 2009, in the wake of the GFC.
Loan sizes – for both first homebuyers and others – continued to grow steadily throughout the period, but interest rates fell from an about 8% in November 2008 to a low of 5.75% in May 2009.
Monthly mortgage repayments were calculated by Business Insider Australia from big-four average variable mortgage rates from Canstar and average loan size data from the Australian Bureau of Statistics. Rental prices were sourced from Australian Property Monitors.
Business Insider Emails & Alerts
Site highlights each day to your inbox.