Renting Vs. Owning

Renting Vs. Buying: Which Option Is Better?

Silver Maple Mortgages |


With the current housing market situation, there have been a lot of discussions surrounding renting vs. owning when it comes to your housing situation. Each option brings advantages and disadvantages. Here are a few:


Reasons to consider buying

It’s important to have assets

If you’re in your 20s or 30s, you’ll want to have some equity to build your financial portfolio, and a home is a great way to invest. When it comes time to sell, the value of your home may be worth more than what you paid for it. It could potentially help you afford your next home.

Condominiums are relatively affordable

If you don’t need a four-bedroom, three-bathroom house with a yard, why not consider a condo? Like a house, a condo is still a great investment and more affordable than a house.

Mortgage rates may increase again soon

The Bank of Canada recently increased their interest rate. So taking out a loan or a mortgage may be a bit more expensive than it was two weeks ago. Even still, rates are still relatively low. Now is a good time to take advantage of the current mortgage rates, as some rates can change before the end of the year.


Reasons why you may want to consider renting

It can be the cheaper option

While it is true that renting doesn’t earn you any capital, it can actually be a cost-effective way to live in a city like Toronto where buying a home can be pricey. Depending on your income and how much you can put towards the cost of a home, the cost of rent could be lower than a mortgage payment in some cases. 


Save and feel out the neighbourhood

If you plan to enter the real estate market eventually but don’t feel like now is the right time, renting will give you more time to save for a down payment. Not only that, but you can get a feel for the neighbourhood you potentially want to buy in by renting in that area. 


No maintenance, no worries

When you rent, you’re not on the hook for maintenance costs. If your dishwasher has washed its last dish, or the dryer isn’t drying, you won’t have to pay for repair or replacement. This also means you won’t need to pay for any necessary renovations – which can cost the owner thousands of dollars.

We also wanted to share a few excellent graphics that help you see the advantages of each, as well as the cost/benefit analysis. 

Despite the pros and cons, you have to do what is right for you in your situation. If you’re looking to buy or wondering about mortgage options, do not hesitate to give us a call or send us an email! One of our agents would be happy to talk you through the process. 

Thank you to Rate Supermarket for this insightful article. It initially appeared on their website in 2017 at