
Let’s be honest, buying a home and paying off a mortgage isn’t exactly a walk in the park. If it were, everyone would be doing it, right?
In the short term, your mortgage repayments, plus rates and insurance, will probably be much higher than your current rent, which could stretch your budget a bit.
Mortgage repayments + Rates + Insurance = $$$
So the real question is, can you manage the short-term pinch for the long-term payoff?
Let’s look into this a bit more.
Inflation is when prices rise over time. Another way of looking at this is that the value of money goes down over time – you can’t buy as much with $10 now as you could 10 years ago, right?
What impact does inflation have on the value of your debt?
Inflation decreases the value of your debt as well.
The cost of things like groceries, petrol, and other everyday items will likely rise over the years. Your rent will likely rise, too. Ideally your pay should also increase over time, keeping up with inflation.
However, if you don’t increase your principal balance and interest rates remain the same, your mortgage repayments won’t go up.
A real-life scenario
Imagine you bought a three-bedroom house 10 years ago for $350,000.
Back then, your mortgage repayments of $400 a week might have felt high compared to renting. But now, wouldn’t you prefer paying that $400 per week mortgage instead of renting for $550?
And if you wait another ten years, that $400-a-week mortgage will likely seem even cheaper compared to the average rent.
There are also other lifestyle factors to think about

Owning your own home means exactly that — it’s your home. You don’t have to deal with a landlord deciding if you can have a cat or a dog. You can paint a room any colour you like, even if it’s a shade that’s not trending right now. And you no longer have to live with that orange vinyl flooring from the ‘70s.
Then, consider the stability it brings. You don’t have to worry about moving on or your kids changing schools just because the landlord decides to sell or have family move in.
So, what’s your next move?
Are you going to keep thinking that a mortgage is more expensive than renting?
Or are you going to take the leap, get a mortgage now, endure the short-term pain, and then ride the wave of inflation to start
Then consider the stability it offers you and your family. You don’t need to worry about moving and your kids changing schools just because the landlord wants to sell or let their family members move in.
Here’s what you could do
Instead of focusing on whether a mortgage is more expensive than renting, consider taking the leap and securing a mortgage now.
While there may be some short-term challenges, you’ll be positioning yourself to ride the wave of inflation and start building wealth for the future.