Are you ready to take the leap into homeownership?

Weighing out the pros, cons, costs, and considerations is the best way to help you determine if you’re ready for home ownership.

Renting

Pros

Renting is a great first step to living on your own.  Since it lacks long term commitment (most rental agreements are one year a most) renting is an affordable and accommodating option for many people. 

Cons

You’re essentially paying off someone else’s Canadian mortgage rate, rather than investing in your future. What’s more, your rental agreement will have its own set of rules that you will be required to abide by during your tenancy.

Buying

Pros

The current best mortgage rates enable you to borrow money cheaply right now.  Furthermore, owning a home will help to provide you with a sense of security and comfort.  You have freedom to update it as you please and improve on your investment. 

Cons

You must be personally and financially prepared for homeownership.  Expect your stress levels to increase given your monthly budget.

Costs

Renting

Renting provides low initial costs.  Your costs are a predictable expense and thus easy to budget around.

Buying

Saving up for a down payment requires substantially more money. What’s more, there are hidden expenses that show up unexpectedly. Finally, if you secure a low mortgage rate today, you will need to keep in mind that your payments may go up when it comes time to refinance.

Investment

Renting can be considered an investment if the money that you’re saving is going towards a future down payment. Buying a home can be considered a good investment only if the property value increases.  It could also provide a possible source of income if you choose to rent out a room or convert the basement into an income suite.

Buying a home is a big investment. Make sure you’re ready to make the commitment. Contact a mortgage broker to learn more about the pros and cons of homeownership.