Archived — Should you rent or buy a home?

Should you rent or buy a home?

Deciding to take on a mortgage rather than paying rent is one of the most important, yet difficult, decisions a consumer will make. Not only does buying a home involve saving up for a down payment, but it also involves making monthly mortgage payments, paying for utilities and taxes, and budgeting for upkeep and maintenance—those sometimes unpredictable household expenses that most renters avoid.

The Office of Consumer Affairs at Industry Canada has developed an online calculator to help potential homebuyers determine their actual costs. The calculator is free and gives consumers a chance to see what their current expenditures on housing would look like if applied to buying a home.

Using the Rent or Buy Home Calculator

To see if you can afford to buy a home based on what you spend on rent and utilities each month, go to the Rent or Buy Home Calculator. Once you enter the funds you have available to put toward the purchase of a home, the cost of your rent and utilities, and the mortgage interest rate, just click "Calculate."

Want more consumer tools and tips? Check out the Spending Smarter Calculators or visit Consumerinformation.ca, your objective and trustworthy source for consumer information.

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