• Is it Better to Rent or Buy a Home

Is it Better to Rent or Buy a Home

  • fb img
  • tw img
  • gp img
  • in img
Is it Better to Rent or Buy a Home
CompareMyRates

Should you continue to rent or consider buying your own home?

If you are wondering Is it Better to Rent or Buy a Home and what is right for you requires careful consideration. While apartment living may have become tiresome, and you may be sick of paying out money to live when you could be investing in a nice home, the freedoms and joys associated with home ownership need to be weighed against the financial costs or gains. The truth is that purchasing a home is probably going to require going into debt. And, it is also going to mean taking all or part of your nest egg and using it to make a down payment.

To make a sound financial decision on whether to continue to rent or to buy, the first step is to determine whether you have enough cash on hand to make a down payment of at least 5%. Next, you’ll want to calculate all the additional fees and costs associated with purchasing a home. These costs include origination fees, property taxes, closing costs, maintenance or association fees, sales commission costs and if applicable, mortgage insurance. Once you have this information gathered, you’ll want to combine it with the purchase price, interest rate, the term of the loan, expected home appreciation and inflation rates. Once you have a clear picture of what buying a home would mean in terms of financial gain, you’ll want to measure that against the cost or gain of staying in an apartment. In other words, if you took the same amount required for closing and down payments and invested or saved them instead, how would your financial gain look when compared to making an investment in a new home? 

Check out our Mortgage Affordability Calculator you are looking to buy, mortgage rates are historical lows and finding Best mortgage rates is crucial to your decision.

 

Get the latest deals & offers right to your inbox.

Join our mailing list to receive the latest offers.

You have Successfully Subscribed!

Talk to someone
416-992-5104
COMPARE MORTGAGE ONLINE
Checkout personalized quotes and see how much you can save now1
What type of mortgage are you looking for?
Current Average Mortgage Rate*: 2.660% APR *5 Year fixed term
Great! What type of property are you purchasing?
Great! What type of property are you purchasing?
What is your estimated purchase price?
$0k - $10k
How much are you putting as a down payment?
0%
90%
0% - 5%
Choose Your Province:
  • Ajax
  • Alberta
  • Barrie
  • Brampton
  • Brantford
  • British Columbia
  • Burlington
  • Cambridge
  • Durham
  • Etobicoke
  • Guelph
  • Kingston
  • Kitchener
  • London
  • Manitoba
  • Markham
  • Milton
  • Mississauga
  • New Brunswick
  • Newfoundland and Labrador
  • Niagara
  • North York
  • Northwest Territories
  • Nova Scotia
  • Nunavut
  • Oakville
  • Ontario
  • Ottawa
  • Prince Edward Island
  • Quebec
  • Saskatchewan
  • Scarborough
  • St. Catharines
  • St. Thomas
  • Stratford
  • Strathroy
  • Thunder Bay
  • Tillsonburg
  • Toronto (GTA)
  • Vaughan
  • Waterloo
  • Windsor
  • Woodstock
  • Yukon
Choose Your Rate Type:
Choose Your Term
1 Year
Finished!
Your mortgage options are ready to be sent to you.
*Your information is 100% confidential.
^