- First Mortgage
- by admin
- 15 Sep
New Study Confirms the Benefits of Owning Your Own Home
Even though the affordability of housing across Canada remains a hot topic, purchasing a home remains the best option available versus renting a property. A new study conducted by Mortgage Professionals Canada shows that people that go ahead and invest their money in a home end up much better off on a long-term basis than people that continue to rent.
The report from the company shows that monthly costs for homeownership is generally less than the monthly costs associated with renting. As well, as time goes by, the financial benefits of homeownership become even more pronounced.
The costs of both renting and owning a property continue to go up across the country. While rents rise over time, the largest expense of owning a home, the monthly mortgage payment, usually remains the same over a certain amount of time. This means that the cost of renting increases faster than homeownership costs.
Costs can be even further reduced with homeownership if the individuals holding the mortgage decide to make extra repayments on the mortgage principal whenever possible. Making payments on the mortgage every month will help pay down both the principal and interest but making extra payments on only the principal can really make a difference. If you are already holding a mortgage all need to find out how much you can pay directly towards the mortgage principal every year without incurring any type of fees or extra charges.
Overall, owning a home costs $541 more on a monthly basis but when you factor in the principal repayment, the net cost of ownership lowers to $449 less per month as compared to renting a unit.
Find out more about the true costs of homeownership versus renting by visiting our website today at mortgageassist.ca. We are Canada’s mortgage specialists and can help you find the perfect mortgage based on your current financial situation.