What is capital growth, and how can you maximise it?

Collage of people jumping over the chasm of capital decline.

Whenever we invest in a property, price and personal wishlists usually rank top of our considerations. But savvy buyers know there’s another rat in this race: capital growth. 

Let’s unpack why capital growth matters to your purchasing decision – and how you can make the most of it.

Why capital growth matters

Collage of people shaking hands over a house.

Capital growth describes how much a property’s value increases over time. If you buy a house for $1 million then later sell for $1.3 million, the capital growth was $300,000. 

In general, property values tend to increase over time anyway, but this can be misleading if you're new to it. Just because the median price of a suburb goes up, doesn’t mean every property price within it did. It just means the area is trending up as a whole, while some homes may not improve in value at all. 

The key is learning how to spot properties that will likely gain value as they age – or at least, gain more than other options on the market.

So how does one go about getting the biggest bang for their buck? What makes a good investment?

Principal of Michelle May’s Buyers Agents, Michelle May says you should leave your wishlist at the door and look at each property without emotion.

"You can’t attribute any extra value to a property because it has your dream kitchen or added storage. We’re simply looking to see if it’s a good investment,” says May.

RELATED: What is a home loan calculator, and how does it work?

While this approach may not come naturally to some, it’s vital to think of the big picture. When we’re in a housing moment like now when supply outstrips demand, it’s a buyer's market. Hopeful homeowners will seek out the most competitive properties on the street while others get left behind.

To counteract this, May advises to not just look at the property itself but the whole neighbourhood. Every neighbourhood is different, filled with a variety of pros and cons that need to be considered.

“Some things that negatively impact capital growth are properties on main roads, tight and inflexible floor plans, narrow frontages, a poor level of finishes throughout, bad parking options or strata teams with a poor history of success,” says May.

“On the flip side, properties that do well will be on a quiet street, close to amenities, and walkable to nearby attractions and green space. They will have a private outdoor area, excellent transport links and little to no development nearby.”

It may sound like wishful thinking, but these kinds of properties do exist. It just requires some careful research.

“The more you know, the more empowered you are to make better property decisions,” concludes May, “and in the current market conditions, that extra knowledge will put you ahead of the property-hunting pack.”

Ready to buy your dream home? Browse and compare a selection of competitive home loan interest rates below.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can compare more home loans here.
Last updated 19 August 2025 Important disclosures and comparison rate warning*
What are your home loan needs?
Loan purpose
Buying or Refinancing
  • Promoted

    Discount Fixed Rate

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Cashback
    Interest rate
    4.89 % p.a.
    Fixed 2 years
    Comparison rate
    5.62 % p.a.
    Initial monthly repayment
    $2,651
    Go to site
    • $2,000 cashback for new loans (T&Cs apply)
    • Up to $10,000 extra repayments annually
    • One free residential valuation per application
  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.24 % p.a.
    Variable
    Comparison rate
    5.15 % p.a.
    Initial monthly repayment
    $2,758
    Go to site
    • RATE CUT NOW LIVE!
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
  • Promoted

    Lite Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.54 % p.a.
    Variable
    Comparison rate
    5.56 % p.a.
    Initial monthly repayment
    $2,852
    Go to site
    • Earn Virgin Money Points every month
    • No ongoing home loan fees
    • Make additional repayments and redraw at no extra cost
  • Promoted

    Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.29 % p.a.
    Fixed 2 years
    Comparison rate
    5.67 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.
  • Promoted

    Basic Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.63 % p.a.
    Variable
    Comparison rate
    5.65 % p.a.
    Initial monthly repayment
    $2,880
    Go to site
    • ME Home Loans has confirmed a rate cut of 0.25% p.a. effective 30 August
    • $3,000 cashback when refinancing $700k+ (T&Cs apply)
    • Unlimited free redraw and extra repayments
  • Promoted

    Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • Interest only
    • 20% min deposit
    Interest rate
    5.29 % p.a.
    Fixed 2 years
    Comparison rate
    5.72 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • Free extra repayments of up to $25,000 during the fixed rate period.
    • Split loan available
    • Weekly, fortnightly, or monthly repayment options
  • Discount Fixed Rate

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Cashback
    Interest rate
    4.89 % p.a.
    Fixed 2 years
    Comparison rate
    5.62 % p.a.
    Initial monthly repayment
    $2,651
    Go to site
    • $2,000 cashback for new loans (T&Cs apply)
    • Up to $10,000 extra repayments annually
    • One free residential valuation per application
  • Optimum Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    4.99 % p.a.
    Fixed 1 year
    Comparison rate
    5.99 % p.a.
    Initial monthly repayment
    $2,681
    Go to site
    • No application, establishment or monthly fees
    • Make extra repayments up to $20,000 per year
    • Free redraw facility to access additional funds
  • Fixed Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.09 % p.a.
    Fixed 2 years
    Comparison rate
    5.69 % p.a.
    Initial monthly repayment
    $2,712
    Go to site
    • Get up to $4,000 cashback (T&Cs apply)
    • Up to 12 months repayments in advance without penalties
    • Split loan available
  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.24 % p.a.
    Variable
    Comparison rate
    5.15 % p.a.
    Initial monthly repayment
    $2,758
    Go to site
    • RATE CUT NOW LIVE!
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
  • Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.29 % p.a.
    Variable
    Comparison rate
    5.33 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • RATE CUT NOW LIVE!
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.
  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.29 % p.a.
    Fixed 2 years
    Comparison rate
    5.67 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.
  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • Interest only
    • 20% min deposit
    Interest rate
    5.29 % p.a.
    Fixed 2 years
    Comparison rate
    5.72 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • Free extra repayments of up to $25,000 during the fixed rate period.
    • Split loan available
    • Weekly, fortnightly, or monthly repayment options
  • Discount Great Rate Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.49 % p.a.
    Variable
    Comparison rate
    5.50 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • Get up to $3,000 cashback when you apply online (T&Cs apply)
    • No paperwork or payslips required (see site for details)
    • Low variable rate
  • OMG Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.49 % p.a.
    Variable
    Comparison rate
    5.52 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • BCU Bank Home Loans has confirmed a rate cut of 0.25% p.a. effective 2 September
    • No ongoing annual fees
    • Pre-approval valid for 3 months
  • Flex Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.53 % p.a.
    Fixed 2 years
    Comparison rate
    5.86 % p.a.
    Initial monthly repayment
    $2,848
    Go to site
    • Multiple offset accounts available
    • Free extra repayments
    • Easy redraw facility
  • Lite Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.54 % p.a.
    Variable
    Comparison rate
    5.56 % p.a.
    Initial monthly repayment
    $2,852
    Go to site
    • Earn Virgin Money Points every month
    • No ongoing home loan fees
    • Make additional repayments and redraw at no extra cost
  • Budget Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.54 % p.a.
    Variable
    Comparison rate
    5.57 % p.a.
    Initial monthly repayment
    $2,852
    Go to site
    • IMB Bank Home Loans has confirmed a rate cut of 0.25% p.a. effective 26 August
    • Get up to $4,000 cashback (T&Cs apply)
    • Split loan available
  • Everyday Home Loan

    • Owner occupier
    • Principal & Interest
    • Interest only
    • 20% min deposit
    • Redraw available
    Interest rate
    5.54 % p.a.
    Variable
    Comparison rate
    5.59 % p.a.
    Initial monthly repayment
    $2,852
    Go to site
    • Access unlimited free redraw on extra repayments
    • No monthly account keeping fees
    • Option to split your loan (fee applies)
  • Loaded Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.59 % p.a.
    Variable
    Comparison rate
    5.88 % p.a.
    Initial monthly repayment
    $2,867
    Go to site
    • Earn Virgin Money Points at settlement and every month
    • 100% interest offset
    • Weekly, fortnightly or monthly repayment flexibility
Showing 15 results from 395 home loans. Use the filters to see more

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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