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Renting vs. Buying: Is Buying A Better Option Than Renting?

Buy or rent on Blackboard



Home ownership may be the Canadian dream, but it’s also a big responsibility – after all, a house is the most expensive purchase most of us will ever make. Carefully consider your situation before deciding whether it’s best to rent or buy your first home.


Renting vs. buying


Why buy instead of rent?


  • Your monthly payments build equity and lead toward home ownership.
  • With a fixed-rate mortgage, your monthly payments will remain the same for the life of your mortgage.
  • Your mortgage interest may be tax-deductible if you are self employed and work from your home as well or have a home office.
  • If your home increases in value, you can make a profit when you sell.
  • A home can be passed on to children or other immediate family members.
  • Home equity (the amount you own) can be used to finance educational expenses, home-improvement projects, small-business startup costs or other needs.
  • You can make changes or improvements at will.
  • A landlord can’t decide to sell your house and force you to move.


Why rent instead of buy?


  • Monthly payments may be lower than mortgage payments. Use our mortgage calculator to determine what your mortgage payments may be.
  • Compared with a mortgage, a lease is a short-term financial commitment.
  • Someone else performs and pays for repairs.
  • Rent payments may cover appliances, furniture, utilities and even cable or internet.
  • No significant down payment or loan closing costs are required to start renting.
  • Landlords might not scrutinize your credit history the way mortgage lenders will.
  • Rent payments that are a few days late typically won’t hurt your credit score.
  • It’s easier to sign a lease than to get approved for a mortgage.
  • There’s no investment risk if the housing market changes.
  • You may be able to avoid home insurance premiums or condo maintenance fees.


Seeing how much house you can afford is a good first step in balancing the decision to rent or buy.

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