Of course as real estate agents we agree with the saying, “why rent when you can buy?”, but is it really true?
According to the Huffington Post Canada, most Canadians choose to rent rather than buy is because it’s just too expensive. However the Huffington Post broke down the cost of monthly rent versus monthly on average cost for buying a home and the results were quite similar.
To calculate these costs they used the average monthly rent price from a website called Rentseeker. They then calculated the monthly cost to own a home by considering many factors including the value of the home, a 2.89 percent interest rate on a 25 year mortgage with a 20 percent down payment and property taxes.
The Huffington Posts calculations did not include condo fees, utility bills or home insurance.
The results were as follows:
Buy: $1, 367.26
Rent: $1, 122