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Benefits of Owning vs. Renting reaffirmed in new study from MPC

A study from Mortgage Professionals Canada has determined that the rising rents are making homeownership the affordable alternative.

How much could buyers save?

The analysis compared the cost of renting vs. owning across Canada both 5 years and 10 years into the future, using 266 different “cases” of locations and types of dwellings, along with higher interest rates factored into the equation. In all cases, owning comes out ahead.

Scenario #1: If interest rate remains at 3.25%, in 10 years the cost of ownership will be lower than the cost of renting for almost 99% of cases. The saving for owners vs renters would be $1,295 per month.

Scenario #2: If rates were to rise to 4.25% after 10 years, the cost of ownership is less than the cost of renting in 92% of case studies, with an average saving of $1,014 per month.

Scenario #3: If interest rates rise to 5.25% after 10 years, the cost of ownership is less than the cost of renting in 82% of case studies, with an average saving of $726 per month.

“Using conservative expectations for rental increases over time, there is a clear financial benefit of owning versus renting,” commented Paul Taylor, President and CEO of Mortgage Professionals Canada. “While recent changes to mortgage qualifying have made the barrier to entry higher, those who can qualify will be much better off in the long term.”

Buying a home is still the more affordable option when compared to renting.

Are you looking to invest in a property? We, at team Rick Sekhon, are mortgage experts that can tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much we could help you save right now.

Contact us today for your free NO Obligation mortgage consultation!

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