The Cost of Renting Compared to Owning Your Home

There is no doubt that owning a home is a great investment.  But sometimes you have to look at the opposing view to see the value of what is right in front of you. 

The opposite of owning a home is renting one.  When you rent you pay monthly and see zero return.  Rent also goes up each year, currently in Ontario your landlord can increase your rent 2.2% in the year of 2020. 

The financial costs of rental are obvious and I will compare that to owning in a minute. 

The bigger cost of renting is lack of security.  You are at liberty of your landlord. If they want to sell the property, or have a family member move in, your life could be uprooted in a matter of months. 

When you own your security is in your own hands. 

If you rent a house that is worth $300,000 you are looking to pay $1,850 per month. 

Each year you would pay $22,200 and have zero to show for it. 

If you purchase that same house with a 10% down payment, the average mortgage currently would cost you approximately $1,400 per month. 

Each year you would pay out $16,800 and at the end of the year you would have $7,000 that is under your name, in terms of paying off your mortgage. 

Let’s compare…

Owning you would pay $5,400 less per year than renting.  And you would have have $7,000 paid off on the mortgage. So in essence owning that same home would cost you $12,400 less per year! 

If you think owning is out of reach for you, Rent To Own Canada is here to help. 

With our Rent To Own agreement we help many people that can’t qualify for a traditional mortgage.  From debt, bad credit, divorce, self-employed the list goes on. 

Rent To Own Canada is here to help.