Renting and Buying a home both have advantages and disadvantages. In some communities like Vancouver or Toronto, it might not make sense or be feasible to buy a home. You know what the current rental rates are and they are VERY much the same as owning your own home. For example, a typical 4 bedroom home in Lethbridge rents for around $1600+/month. The estimated mortgage on a $250,000 purchase with property taxes around $250/month works out to $1530/month (as of rates posted October 15, 2018).
Advantages to buying a single-family home in Lethbridge:
1) You are paying down your own mortgage (not the landlords) and building equity in your property
2) You put down roots when you buy a home
3) If you want to paint your door purple, you can
4) You can have your friends over and enjoy your pets
5) Save money – Remember that each month you pay your mortgage payment, the EQUITY* in your home goes up (You can be a property owner with a condo as well, but you will have to follow the rules set out by the condo corporation with regards to pets, and home improvements)
There are times when renting makes sense. Say you only plan to stay in Lethbridge for a few years, or maybe you are in a serious relationship, but it’s not serious enough to buy a house together, then you might want to rent (here is some Lethbridge Rental Information).
Advantages to renting in Lethbridge:
1) Your landlord is responsible for making repairs to the property
2) You have more freedom to pick up and move around
3) Your landlord pays the property taxes and home insurance (you would still want to get contents insurance for your property)
If you are worried about getting a down payment, or qualifying for a mortgage, it makes sense to talk to your bank or a qualified mortgage professional. They will be able to help you plan for the future, and might be able to give you some ideas. We have some great options for people who don’t have 5% down.
*EQUITY: Your equity in your home is the difference between what you owe on your home and what your home is worth on the open market.