Mortgage Professionals Canada have published a study on the perpetual own vs. rent comparison. The outcome is interesting in that most of the results of these studies have previously shown that renting is the better choice.
However, given the soaring rents in Canada the study concludes that you can’t afford NOT to buy a home if you are now renting.
Do the math.
$100K in mortgage is a monthly payment of about $500 assuming an interest rate of 3.5% and an amortization of 25 years.
How much is your current rent worth in equivalent mortgage principle?
Gathering the down payment for the purchase is often an issue in these situations. Know that there are alternative forms of down payment rather than just your savings that are acceptable to both lenders and CHMC.
Obviously deciding to buy isn’t just about the numbers. But if you have any questions regarding what mortgage amount you can qualify for feel free to contact me.
If you have an interest in reading the full report you can find it here: owning-vs-renting-2018