Home ownership has been serving as a foundation of the Canadian dream for ages. Buying or renting a home is not specifically a financial move. It may sound simple, but it requires a great deal of effort on financial and emotional levels.

Renting a Home

Mobility and Flexibility: If you are young and do not like to settle down, then renting a home may work best for you. A rental lease has the potential to offer you maximum flexibility to easily change your residence whenever you like. A majority of leases remain in effect for a year, but you have an option to negotiate for a shorter term, if that is what you want.

Affordability: Housing prices are rather high in some cities of Canada. In such a scenario, the only affordable option that you are left with is renting a house. It is not only less expensive, but is also worth the cost. Furthermore, when you rent a house, you just need to deposit rent for a month which ensures much reduced initial costs.

Ability to Save More: A pure financial perception proves that you are able to save a lot of money when you opt for renting a house. Contrary to purchasing a home, renting involves only some upfront expenses. If you intend to stay at a particular location only for a few years, you can easily save money by renting.

Absence of Authority: As a tenant, you do not have any control over the property in which you reside and hence are not allowed to object on actions of your landlord. It is quite possible that you may have to follow many rules set by your landlord.

Buying a Home

Financial Stability: If you take up a fixed-rate mortgage to buy a home, your mortgage payment is likely to remain unchanged for most of the period of your loan. It gives you financial stability and enables you to efficiently utilize your monetary resources.

Authority over Property: When you have ownership of your home, you are free to do whatever you want. The feeling of owning a home gives you a certain sense of comfort and security.

High Costs: You may have to save a lot of money to make a down payment before buying your home. The amount required for down payment is definitely much more than what you need to deposit for renting a house. Furthermore, you have to bear all unexpected expenses and property taxes.

You need to make earnest considerations before deciding whether to buy or rent a home. While each has its own pros and cons, the ultimate decision lies in your own feasibility and easiness.