Is It Better to Own or Rent a Property?

Very Commonly Asked Question!

Okay, is it better to own or rent a property? This is a very commonly asked question, and if you're at that point in your life where you're considering home ownership, you probably have some questions. Whether you are currently living at your parents’ home, or looking take your first steps of your own, or are currently renting with roommates and looking to step out by yourself, there are lots of things to consider. From renting an apartment to owning a home, it all comes down to where you see yourself living and what you can afford.  

The question then becomes renting versus buying. The beauty is there's no right or wrong answer when it comes to this discussion, but it is important to look at all the angles before making a decision. To help you with this, I’ve broken down the reasons and the benefits of renting, as well as the reasons or benefits of buying, and why owning can still be possible even if you're unsure.  

Pros & Cons of Renting

One of the most common reasons people rent is affordability, and the belief that renting is cheaper than owning a home. And this can be true as there's no upfront cost when renting, but you also don't gain equity either. In addition, there can be times when a monthly rental cost is more than a monthly mortgage payment. Another reason someone may choose to rent is they simply aren't sure where they want to live, or maybe can't find a place that fits all their needs. Also, if you're new to an area, you may want to rent for a while so you get to know the neighborhood and determine which area is a right fit for you.  

To give you a better idea of whether or not renting is right for you, I put together a little list of pros versus cons to help you decide. 


  • There's always going to be less maintenance
  • Fewer repairs
  • Low upfront costs
  • Short term commitment for people unsure of where they want to plant their roots
  • Protection for potential decrease in property value
  • Monthly payments may increase
  • Potential for being evicted lease renewal not being approved
  • Paying into somebody else's mortgage instead of building your own equity
  • Requiring permission to paint or even do simple remodeling

Pros & Cons of Home Ownership

When it comes to buying, there are many great reasons to consider owning your first home. Did you know more than 40% of households of Canadians under 35 own their own homes. And overall, Canada's home ownership rate is close to 70%. One of the main reasons people choose to buy is the stability and peace of mind that comes to owning the place where you live. This means you're never going to be at risk of being put into a situation where the landlord wants to move a family member in, and you have to deal with all the costs associated with moving out.  

For others, the benefits of buying comes in building up equity and ensuring that nest egg for your future. When you choose to rent, you’re paying into somebody else's mortgage and into their future. To further show the benefits and costs of buying, I’ve broken down some pros & cons to help you determine if this is the right path for you.  


  • When you own your place, you have the freedom to renovate or modifying your home as you wish
  • You are building up equity in a safe secure investment as you pay down your mortgage
  • There's potential for additional income if you have a rental suite
  • Gives you that stability and peace of mind from being in control your own investment and owning the place where you live


  • The risk of losing your home value when you sell
  • You are responsible for the ongoing costs, including mortgage, principal, and interest, property taxes, insurance and maintenance
  • Monthly payments can increase if interest rates go up at renewal time
  • Possibility of unexpected potentially costly repairs

How Can I Afford to Buy?

Now, you may be thinking, “How can I afford to buy a home?” Well, the reality is that, if you can afford to pay a high cost of rent in today's market, then you could probably afford to buy a place. In fact, it may surprise you to find that 4 in 10 households spend over 30% of their pretax income on rent. And this is higher than the commonly-accepted affordability threshold for a mortgage. The truth is that homeowners are often financially better off than renters. And this is because home ownership enables for savings accumulate over the years going into a nice sizable nest egg. 

If you're unhappy about renting or prefer the idea of owning your home, you can. All you need is the right information and the right preparation. To determine if you're able to purchase a home a good place to start is my mortgage toolbox on my website Using the app you can calculate the minimum down payment or monthly mortgage cost to help you get a good picture of your financial landscape and your options. Looking at your budget and evaluating your current rent costs and other monthly expenses can also help you determine your affordability bracket.  

Other Things to Consider

There are some other things to consider before buying that include such things like your credit score. Do you have a good financial standing to be able to be approved for a mortgage? Your savings, do you have any money to put aside for a down payment? If not, do you have any wiggle room in your budget to start saving? You also got to be aware of your time. Do you have the resources to maintain a home and any necessary repairs? 

Wrap Up!

So, there you have it, renting versus buying and the pros and cons of each one. Regardless whether you choose to continue renting or made the leap to owning your own home, the most important factor is your financial security. Getting the right information and looking into all options will ensure that you are making the best decision for yourself.  
If this blog led to more questions, or you'd like to talk to somebody about the idea of owning your own home, please don't hesitate to reach out so I can put you in touch with my mortgage expert professional.