🗓️ Life event guide
Should I Buy a House in Australia?
A financial readiness checklist and honest buying-vs-renting framework for Australians — 2026 edition.
🏠 Life event guide·7 min read·Updated March 2026
Part of🏠 Buying a Home
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Financial readiness checklist
Before buying, honestly assess each of these six areas. There's no minimum score — but more boxes ticked means less financial stress after settlement.
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Deposit ≥ 10% (ideally 20%)
You need at least 5% to get a mortgage, but 10–20% reduces or eliminates LMI. Also budget for stamp duty, legal fees (~$1,500), and building inspection (~$600) on top.
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Stable, predictable income
Lenders want 2+ years of continuous employment (or 2 years of consistent self-employment income). Probationary periods, contract roles, or recent career changes complicate approval.
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Emergency fund separate from deposit
Aim for 3–6 months of living expenses in accessible savings after you settle. Unexpected repairs, rate rises, or income gaps shouldn't force you to sell.
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Manageable non-mortgage debt
HECS debt, personal loans, credit card limits (even unused), and buy-now-pay-later accounts all reduce your borrowing capacity. Pay down high-interest debt before applying.
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Credit score above 650
Check your score via Equifax, Experian, or Illion for free. A score above 700 opens more lenders and better rates. Missed payments, defaults, or multiple loan applications in the past 5 years reduce your score.
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Planning to stay ≥ 5 years
Upfront costs (stamp duty, legal fees, agent fees when selling) typically take 3–5 years to recoup. If you might need to move sooner, renting often makes more financial sense.
Buying vs renting — an honest comparison
| Factor | Buying | Renting |
|---|---|---|
| Wealth building | Equity grows as you pay down the loan and if prices rise | No equity; money goes to the landlord |
| Stability | Can't be asked to vacate; renovate as you like | Can be asked to move; limited modifications |
| Upfront cost | Deposit + stamp duty + fees (often 25–30% of price) | Bond (4 weeks) + advance rent |
| Ongoing costs | Mortgage + rates + strata + maintenance (1–2% p.a.) | Rent only (no maintenance responsibility) |
| Flexibility | Selling takes weeks–months; high transaction costs | Can move with 3–4 weeks notice |
| Tax | No CGT on primary residence; land tax applies to investors | Rental payments not tax-deductible |
Key numbers for 2026
Sydney
Median price~$1.40m
20% deposit~$280k
Stamp duty~$56k (non-FHB)
Melbourne
Median price~$930k
20% deposit~$186k
Stamp duty~$50k (non-FHB)
Brisbane
Median price~$870k
20% deposit~$174k
Stamp duty~$32k (non-FHB)
Median prices are approximate for March 2026. Stamp duty shown for owner-occupiers (non-FHB). First home buyers may be exempt or pay reduced rates — use the Stamp Duty Calculator for exact figures.