Renting or buying? If you’re thinking about your next move in Canada, you might want to weigh your options carefully. People are often encouraged to buy. But, in areas like Toronto and Vancouver, astronomically high housing prices can make that difficult. So where should you go and is it better to rent or buy in this market?
Let’s explore where you can find the best housing deals in Canada - and save money. And, then call the movers.
No one wants to throw away their money. But, renting is a better option in some scenarios:
Some future homeowners are using an investment strategy in this crazy housing market. Why? Because despite your money not going into equity, renting can save you a little money.
Here's why it's better to rent (in some instances):
And the investment part? Save toward a 20 percent down payment. Next, consider a 60/40 plan for low-cost index ETFs. With a three percent withdrawing rate, you can grow your money over time. Then, add money to your RRSP instead of a new wardrobe. What's old is new, right?
So, where should you look for a rental?
For starters, look for homes that have rent control. You can find these in Vancouver and Toronto more so than in Montreal.
On Real Estate Mitula:
Rent Board (as of April 2019) states that:
A great reason to buy a home is to start building equity. You'll want to have about 20 percent down for your home. And, you might want up to five percent of the value of your home saved up for any repairs.
But, going from renting to homeownership can be a steep hurdle in Canada. That's why it depends on where you shop.
In cities like Montreal, Vancouver, Toronto and Victoria, you'll spend anywhere from $900 to $1,500 more to go from renting to owning a condo. But, in a few cities like Saskatoon and Winnipeg, it's cheaper to own than rent. In addition to Saskatoon and Winnipeg, cities like Regina, Ottawa and St. John's also have lower condo ownership premiums.
Want to stay away from sky-high mortgages in Vancouver, Montreal and Toronto?
Another thing you want to do is avoid becoming house rich and cash poor. Meaning, don’t have all your income going to your mortgage.
To help you find affordable housing:
Renting versus homeownership prices can vary depending on where you live. Shop around for deals on rentals and affordable housing. And, when you rent, have a plan to save twenty percent down for your home. Then use a mortgage calculator to determine your future payments. And, when you’re ready to compare interest rates, contact RATESDOTCA.
With RATESDOTCA you can compare mortgage rates from the best financial lenders in Canada. And, get more savings on your mortgage. Compare mortgage rates today!