Rent Vs Buy

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.
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The stress of the process of making, or not coming to a decision can truly affect your life and your emotions, but the good news is by being proactive, this can result in being positive and putting your mind at rest. It is after you come to a well-thought-out and educated decision, and consult trusted friends family and resources, there is a relief. What should you consider when making the decision of Renting Versus Purchasing a Home? Let’s start out by looking at the Pros and Cons of each option.


• No Long Term Commitment
• No responsibility for upkeep and maintenance
• Flexible, you can move more readily if changing jobs or geographic locations

• You are paying someone else to own the property and you will never build equity
• If you have a bad landlord, you may have to live with either fighting for getting repairs done, dealing with bad, noisy neighbours or living with the discomfort.
• No real privacy – Very few rentals have property or backyards
• Although you do not go into debt, you are paying higher rent per month than a mortgage depending on your down payment and Mortgage Rates
• Not a long-term buy you are usually required to sign a lease and that could mean no matter what transpires, you are still required by law to pay rent.
• You are pretty much dependent on your landlord for the comfort of living in your home.
• Most rentals are buildings, so that means you live around more people and odds are higher that you have noisy or disruptive neighbours.
• No Tax advantages, your landlord gets any tax breaks
• Your landlord can decide to sell the property and that is without your permission or getting your opinion. They may sell to another person or company who still allows you to live there, but they may not. At that point, you only have a certain amount of time and you have to move (time depends on the laws, if it’s a month to month or a lease and if proper notice is given)


• Homes for sale are generally nicer with better surroundings and more upscale than rentals.
• You are a homeowner and there is pride in ownership
• Owning a home is security and peace of mind on many levels such as your home is all yours, or your building equity.
• Could be an investment for your future and your children’s future.
• Although winning is a long-term commitment, in the end, you have your own home and equity.
• Privacy – Most homeowners enjoy the freedom of privacy, either with their own backyards and/or houses, you can freely make changes
• You are in control of your surroundings
• Short term pain for long-term gain.

• If you have not planned for future events and changing markets, you could lose your home and your investment
• You will be in debt
• Repairs and maintenance are your responsibility, which means your time and money.
• If for some reason you need to move or cannot afford the home, you are responsible for the sale of the home and the costs associated.

In determining coming to the decision to rent or buy a home, we urge you to expand on this list. The list of the pros and cons we have given is a guide and we cannot make the decision and for example, you may have a long list of cons, but there could be just one pro that is what your heart and mind are set on. It is a good idea to be realistic in what you can afford and think it through.

Purchasing a home can be a great investment for your future, but you need to make some sound financial decisions. has Mortgage Calculators that assist you in planning financially before you even start looking for your home or consult a mortgage broker. One Calculator we have for you that would be a great start is our Rent vs. Buy calculator to determine what are the financial advantages and disadvantages. There are strategies to pay off your home quicker, so after gathering all the evidence and have decided to investigate purchasing a home, can assist by connecting you to a local Mortgage Brokers with our Comprehensive Mortgage Quote system and they will be able to address any questions or concerns you may and get you the best mortgage rates.

Whether you have made the decision to purchase or are more at peace with your decision not to purchase at this time, we hope we have assisted in a small way with putting your mind at rest.

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 homeownership 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.

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

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?

Vik Palan

Vik Palan

Chief Editor -

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