Many potential Ontario homeowners have asked the question of whether it is better to rent or buy. Although most real estate experts would lean on the side of buying as opposed to paying monthly rent payments, your financial circumstances will ultimately dictate whether it is the time to buy or best to continue renting.
One key determinant in deciding whether buying may be the best option relates to the percentage of the money you have to invest. Would this money work harder for you invested in the stock market or high yield mutual funds? Or would the money be better used for a down payment that will make homeownership possible? In the vast majority of cases in Ontario, money is much better used towards a down payment that will enable you to own rather than rent.
Are there circumstances where renting may be the best option?. Generally, it is best to buy if you want to live in a location permanently. Renting may be wise if you are anticipating a move in the immediate future. How high is your household debt load? If a private mortgage loan is your only option maybe you are more comfortable waiting until your financial picture changes.
If you are comfortable in the highs and lows of the stock market then maybe you are more comfortable renting and investing funds. Generally, it is advisable to do what is necessary to buy rather than rent. Ultimately real estate is one of the best long-term investments an Ontario homebuyer can make.
These questions can ultimately be answered by gathering necessary financial information from the last several months and plugging in the numbers to determine the relative costs of renting vs owning a home.
Mortgage Broker Store- Rent vs Buy Calculator Explained
Many Ontarians interested in making the leap to homeownership may not be fully aware of all the costs involved in purchasing a home in addition to the monthly costs necessary in owning a home. Conversely, it may be surprising to find that the monthly mortgage payment may be less than you are currently paying for rent with sufficient downpayment and favorable interest rates.
How to Calculate Your Mortgage Payments Using Our Rent vs Buy Calculator
At Mortgage Broker Store we offer a Rent vs Buy Calculator that will help give a potential Ontario homeowner a fair idea of the cost difference between renting or owning. After you make a list of your monthly liabilities and any monthly income source you will need to plug in the numbers to determine what each option is costing you. There is the need to account for purchase costs which are highlighted in the owning portion of our calculator.
Carefully fill in each financial section to obtain the final financial answer. By filling in all sections you will be able to see whether buying or renting puts you in the most favorable financial position.
At Mortgage Broker Store we are more than willing to help you make the very important decision of whether to rent or buy. We will sit down with you and be able to look at your financial circumstances and offer further advice as to what will be the best overall financial decision for today and moving forward.
At Mortgage Broker Store we have access to a network of private lenders throughout the Province who will be able to negotiate a private mortgage loan if you would like to purchase a home and may have damaged credit, or self-employed and difficult to prove monthly income. We can help you on the road to homeownership.