Rent a House vs. Mortgage a House in Canada

Rent versus purchase-this is one of the everlasting questions that millions of Canadians of any century are asked and respond to. Here’s a bit more detail on the conversation of rent/buy in Canada. The short version relies on a few factors including your lifestyle, investments, and the property market. If you want to get the best advice on whether to rent a house or mortgage a house, you should visit Here are a few pros of renting and buying:

Advantages of Renting

  • Flexibility: Rent does not bind you down in any way. If you plan to move as soon as possible, the rental allows you to leave a location as soon as your original rental is over, normally 12 months. For a mortgage, this is not easy, as when you break a mortgage and pay taxes for selling a house, financial fines are applicable.
  • Less Hassle and Maintenance: Renting a house is not just a burden on your wallet. Regular maintenance of a building takes several hours and a few additional bucks. Renting passes that over to the property manager, and frees your time for fruitful jobs.
  • Cheaper: rent is usually less expensive than a mortgage, in the short term at least. If the household income is not high enough to cover a mortgage, so renting is a cheaper and ideal choice. Alternatively, a rental will give you more surplus money to spend or save, if homeownership isn’t only for you.

Advantages of Buying

  • Stability: You call all the shots to own your house. You don’t need to convince a landlord or property manager to paint or replace the floor, to renovate or to install an ensuite, you can do it! If you own your house, you are not unexpectedly evicted as the second cousin of your landlord wants your place to spend 6 months per year.
  • You Retain Capital Gains: If the property is more worthwhile, you will gain the extra equity, which is offset by the capital gains levy, as you want to sell. If you are on rental, your landlord would be just to gain – if you were genuinely unlucky, you could see your host sell your home or raise your pay! If rates are dropped, your rental will not drop.
  • Building Equity: Every month, you build your own equity with a mortgage. While your interest premium is paid for the debt, the balance will pay off the interest principal. At the outset of your mortgage, interest makes up your payment more, but over the years it will fall.

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