Crace residents would save the most, with new figures issued by RP Data showing homeowners could save almost $300 each month compared to renting.

Those in the city were next best, able to save $130 a month if they held the title rather than a lease.

The other Canberra suburbs – Casey, Forde, Holder and Evatt – are part of the 692 in Australia where it is now cheaper to pay back principal and interest rather than rent, a near quadrupling in numbers from a year ago, when no Canberra suburbs made the list.

The comparisons are based on a 30-year mortage with a variable interest rate of 5.4 per cent and a 10 per cent deposit. Assuming a three-year fixed rate of 5.15 per cent, the data showed there would be 11 ACT suburbs where it would be smarter to buy.

For those prepared to chip in an extra $50 a week, there would be 36 suburbs with better-buying value.

RP Data senior economist Tim Lawless said the national boom in suburbs favouring buyers flowed from a 2.9 per cent average drop in capital city home values from their October 2010 peak, discounted variable mortgage rates that were 175 basis points cheaper than their early 2011 peak, and fixed mortgage rates 265 basis points lower than their recent high in 2010.

Mr Lawless said interest rates were the critical factor in the addition of Canberra suburbs to the list – with small declines in house rents last financial year – and said more encouragement for buyers was likely.

“Canberra rents have risen about 9 per cent in three years, [but] probably most importantly interest rates are at play here,” he said.

“There would probably be an improvement in [suburb] numbers if rates go lower, as is likely.”

Separate figures out this week found the median asking rent for ACT units was now $410 a week, down 6.8 per cent in a year, with house rents down 1 per cent to $480 a week.

Mr Lawless said that while the lower interest rates were not a sign of economic confidence – “you drop them to stimulate” – more suburbs favouring buyers was positive.

“There are probably two standpoints – from a social point of view it’s great that housing has become more valuable – and from a wider economy [view], increased transactions have flow-on effects.”

The flip side for potential first-home buyers was competition from investors targeting the often high yielding suburbs.

For those who only have to pay interest on the variable rate, there are 81 ACT suburbs where buying makes more sense than renting.

Sydney led the way among the capital cities, with 73 better-buying suburbs on the variable interest rate equation, with Melbourne having only two suburbs making the list.

Regional areas dominated the list however, with 440 suburbs and towns outside of the capital cities showing savings for buyers not renters.