In a new report, CoreLogic found repaying a home loan is now cheaper than paying rent in Tamworth, Moree and Armidale, where 87.4 per cent of properties were more affordable to buy than rent.

From the perspective of young, first home buyers in Tamworth, the switch from the rental to property market in recent times has paid dividends.

Chair of the Junior Business Chamber Anneka Frayne, who is a Tamworth-based solicitor, bought a block of land just outside of town and chose to build. She is now paying significantly less on her weekly home loan repayments than she would have paid in rent.

"We're paying about $350 a week in mortgage repayments on our current home, and when we were renting we were paying $320, then they put it up to $350, but now that home would be rented at about $400 a week," she said.

Currently in the process of building her first home in Tamworth is 27-year-old paralegal Madison Burns, who is set to save about $200 more a week by choosing to pay a mortgage over renting, and the decision to buy in Tamworth is one she put down to a number of factors.

"Our land was just registered a fortnight ago, and we are building a home with Hibbards because the intention is to have a basic first house and then have it as an investment property in the next couple of years," she said.

"I've lived in Tamworth my entire life, my whole family is here, I love my job here and I'm not ready to leave - and I know that the market in Tamworth has good growth."

Principal of Ray White Tamworth Malcolm Campbell said it's a win for investors, and a win for renters wanting to break into the property market.

"Interest rates being so low, a shortage of properties and high demand for rentals has kept local housing prices high, so investors are getting a good return on their money," he said.

"On the flip side, for those people who are renting, it is a great opportunity to go and get a mortgage and buy a property - if they are able to."

In the last 12 months, the trend towards cheaper mortgage repayments and higher rent has become more significant in Tamworth, and Mr Campbell attributed that to COVID-19's impact on the market.

"After the last COVID lockdown, there was a major shortage of properties," he said.

"Still to this day in Tamworth there is a big shortage of properties, which has pushed the prices up.

"We're seeing across all suburbs in Tamworth, particularly in South Tamworth, West Tamworth and Calala, that mortgage repayments on a $350,000 home would be less than the rent that they would be charged."

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But, just because mortgages are cheaper than rents in certain locations, doesn't necessarily mean people are rushing to buy properties.

"There is a lot of sales occurring but that wouldn't be the driving factor, there's actually quite a few investors selling at the moment and looking to upgrade because the market is quite good," Mr Campbell added.

"We're having a lot of home buyers and traditional upgraders, but some people are reluctant to sell in case they sell today and the prices continue to rise and then they would need to buy into a dearer entry point."

The median rent in Tamworth is currently $350, with the cheapest suburbs to rent including Coledale, Westdale and Oxley Vale.

The most expensive suburbs to rent include East Tamworth and Hillview, where median rent is $395 per week.

The report did not take into account extra costs associated with buying a home including the home deposit, fees and charges and council rates.

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