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8 Factors to Consider When Comparing Rent vs Mortgage in CAN

The debate of rent vs mortgage is one that has been around for years. Some people believe it is better to rent a property, while others believe that owning a home is a better investment. Pros and cons are apparent to both renting and buying, and it’s important to evaluate your options carefully before making a decision.

After all, in the very grand scheme of things, renting vs. buying a home is a big decision that will have long-term implications. Continue reading to understand the different factors to consider.

1) Flexibility

Renting gives you the flexibility to move as often as you want or need to. If you need to move for work or you want to try living in a different part of Canada, it’s easy to do when you’re renting. On the other hand, once you buy a home, it can be quite the process to sell house. It’s best to look into your personal priorities.

2) Maintenance

Renting means that the landlord is responsible for most, if not all, of the maintenance on the property. If something breaks, you can simply call the landlord, and they will take care of it. When you own a house, you are responsible for all of the maintenance and repairs, which can be good if you want to have more overall control over the state of your household.

3) Affordability

Renting is usually more affordable than owning a home. When you own a home, you must pay for things like mortgage payments, property taxes, and maintenance. When you’re renting, you only have to pay for rent and utilities. This can be quite a good option for people who are on a budget. Granted, try to consider the return that you’re getting for what you’re paying out.

4) Freedom with Investments

Renting gives you the freedom to move around and invest your money elsewhere. For example, you can use the money that you would have used for a down payment on a home to invest in stocks or mutual funds. However, if you do want to get some real estate under your name, go with the alternative and look into a potential mortgage.

5) Stability

Mortgages offer more stability than renting for several reasons. First, your payments are typically fixed for the whole life of the loan, so you know exactly how much your housing costs will be each month. This stability can be helpful if your income is variable. Plus, once you have paid off your mortgage, you will own your home outright and will no longer have to make monthly payments.

6) Capital Gains

If you own a home, you can benefit from capital gains when you sell it. Capital gains are known as the profits you make from selling an asset for even more than you paid for it. This isn’t necessarily applicable when you’re renting.

7) Equity

Equity is defined as the portion of your home that a person would own outright. As you make mortgage payments, your equity increases. Homeowners can borrow against your equity or use it as collateral for a loan.

8) Simplicity

Paying rent, dealing with a landlord, and moving every few years can amount to a lot of work. However, purchasing and owning your own home allows you to work towards one simple goal, which is to have stability and peace of mind.


The final decision to rent or purchase a home is a big one. However, as you can see, there are some very compelling reasons to own a home. This is especially true for those people who are looking to invest long-term or settle down in the future.

Seeking a mortgage specialist in Ottawa? Ottawa Mortgage Services provides mortgage agent services for first time home buyers, self employed individuals, commercial clients. Get in touch with us today!