Homeownership comes with a strong advantage over renting: Equity. Your home is your greatest asset. You can leverage its equity for cash to use as you like. Besides equity, your home is yours to do with what you please. If you want to paint your walls fluorescent colours, you’re able to do so without having to be granted permission by the owner. There are no landlords to check with and you can control the renovations to suit your needs.
Buying a home also allows you to rent it out to create an income property. You can rent out the entire home or just the basement to help pay off your mortgage.
A tool like a rent or buy calculator can help you decide if it’s time to purchase your dream home or simply rent it.
For many people, the thought of owning their own home brings great joy. For others, that thought is met with fear. Homeownership is not for everyone, and there is nothing undignified about renting a property instead of owning it. There are many benefits to buying a home to call your own, and there are many benefits to renting. If you’re unsure which option is best for you, a rent of buy calculator can offer answers.
A rent or buy calculator is a tool that you can consult to help you decide if you should purchase a home or lease one. This calculator takes into account your financial situation and will let you know if paying rent is more feasible than taking on a mortgage.
The calculator will ask you the following information:
Once you’ve input your information, the rent or buy calculator will let you know if you are a good candidate for home ownership or should continue renting. It is important to remember that there are certain cases where a monthly mortgage payment could be less than what you pay in rent.
For example, if you pay $1,400 a month for a small apartment, plus an additional $1,000 in heating, debt repayment and other expenses, you may actually save money by purchasing a home. Your mortgage payment could equal $900 per month, saving you $500 that can go towards paying down your credit cards.
Renting a home comes with many advantages. You can move into a bigger and better home without having to sell the property. Because the property doesn’t belong to you, all you need to do is give your landlord advanced notice and you can hightail it out of there.
Another advantage of renting is that you can put away money over time to save up for a down payment to buy a house. Furthermore, when you rent, you aren’t in charge of maintenance. If your fridge breaks or your toilet won’t flush, these repairs will be taken care of by your landlord at no extra charge to you.Back
Canada’s mortgage website
Your home is your most valuable asset. It is probably the single largest investment you will make in your lifetime. Your home is more than a place to rest your head and raise a family. Your home contains equity. It is a treasured resource and in some cases, can even be used as an ATM (aka cash back mortgages and HELOCs – don’t worry we’ll get there).
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