A new study from Royal Lepage shows that in 91 percent of cases, if you bought your home with a 20 percent downpayment, your mortgage is likely less per month than comparable rent.
The report clarifies that it’s comparing the monthly costs of rent and mortgage payments, so the overall cost of owning a home can likely be more at the end of the month with upkeep involved. Still, since a home can be an investment, it could even out in the future.
Royal Lepage analyzed 278 cases, and 253 of them were situations where renting was more expensive than mortgage payments. That being said, this is a study done by a firm that primarily sells houses, so that may be worth keeping in mind.
The report also stacks up people renting houses versus people owning homes. A much more costly rental opportunity compared to smaller one and two-bedroom apartments. That being said, the drop was more than I’d expected. The report says that renters, on average, pay $769 more per month on rent than others do on their mortgages.
Overall this means nothing unless you can secure a 20 percent down payment which isn’t exactly a small amount of money in many areas across Canada in today’s housing market.