Its important to think this over before you jump into home ownership.  Not everyone is in a position to purchase, but if you are, the joys of ownership awaits.

Buying Property in Toronto

You already know that real estate value in Toronto has consistently risen over the long run, so I won’t go into that. What you might not know is that buying can actually be cheaper on a monthly basis depending on your mortgage details. A $200,000 mortgage at 5.0% over a 5 year term has monthly mortgage payments of approximately $1,175 which compares quite favourably to renting a home, even a condominium.

Debatably one of the highlighted perks of ownership is participating in any appreciation in property value. If you intend to stay put for a few years, the money you take out when you move up the property ladder may cover all the expenses related to your home and then some. With rentals, once that money is spent, you’ll never see it again.

Determine the size of your down payment and talk to a mortgage professional to get a clearer picture of where you stand.

Renting Property in Toronto

Buying is not a viable option for everyone. You should seriously consider renting if you do not intend on staying in Toronto for at least a few years. Buying then selling a home within a year will end up costing more than simply renting.

Renting is also a good starting point if you are not financially ready to purchase. Saving up a down payment and securing a steady income for the mortgage should be strong considerations in your decision to purchase or rent.