| Upfront costs |
- 5-10% down. (5% for first time home buyers)
- Closing costs (land transfer tax, legal fees, etc.)
- Home inspection fees
- Total: $7000+
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- First and last months rent
- Possible security deposit
- Total: $1000 +
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| Carrying costs |
- Mortgage Payments
- Property taxes
- Utility bills
- Home owners insurance
- Services (phone/cable/internet)
- Consider fluctuating mortgage rates
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- Rent
- Possible utility bills
- Renters insurance
- Services (phone/cable/internet)
- Consider rental increases year by year
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| Maintenance |
- Ongoing upkeep and repairs – a home maintenance plan should be considered to plan and save for large priced items like roof or furnace replacement and weeping tiles
- Note: Condos have regular monthly condo fees intended to cover such costs, but larger or surprise repairs may still require a significant payment to the condo association
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- You are responsible to keep your rental clean and tidy
- The landlord will typically pay for regular maintenance and repairs to your unit and common areas
- Some landlords require persistent contact or even legal intervention to complete needed repairs
- If you or your visitors cause damage, you may still be responsible
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| Longevity |
- Stability and security – you decide if you want to move
- Selling can be stressful and complicated
- Consider buying only if you believe you will want to live in your home for a long time
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- A landlord can ask you to move out for certain reasons under the Residential Tenancies Act (Ie. Land-lord wants to move into the unit)
- Renting offers flexibility and ease to move when you desire with typically 60 days notice (after a lease has expired)
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| Control |
- Freedom to renovate, decorate and modify your home as you wish
- Home improvement can increase your investment in your home
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- You will need to obtain permission from a landlord to paint or remodel
- In some instances, your landlord may be responsible to cover the costs of accessibility needs
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| Investment |
- As you pay down your mortgage, your home equity will grow
- You may be able to rent a room in your home or a secondary suite for potential income
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- Lower upfront costs, but no equity building
- Depending on your budget and monthly carrying costs, you may have room for savings
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