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Rent versus Owning - Which is better?

Amidst all of the CMHC and OSFI changes, many are left wondering whether home ownership is right for them. Although property appreciation may be a question mark short term as less can qualify to own their own home, there is a silver lining. Mortgage rates are still extremely low, with many lenders offering close to 3% for 5 year fixed terms, and rates even lower for shorter terms. For many first timers, it can be cheaper to own than to rent as it is only $478 per month per $100,000 borrowed for their mortgage payments. Perhaps more attractive is that a whopping $222 of that $478 per month (46.5%) goes towards principal on the very first payment. Assuming even a 0% appreciation in real estate prices for the next 5 years, it could be a smart move to own strictly from a monthly payment perspective.

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