Is it more financially smart to buy a place rather than rent one? This is a question that is often asked, especially among young, potential first-time homebuyers in London, Ontario. With house prices skyrocketing in cities like Vancouver and Toronto, it can sometimes work out cheaper to just rent. However, in a city like London, Ontario which has more affordable real estate options, the right deal might make the right sense.
In a recent article, Huffington Post provided an interactive breakdown of the cost of renting versus owning in nine of Canada’s major cities. As we mentioned, in some cities, it’s cheaper to continue renting than to find a downpayment and buy.
We’ve seen rental rates in London, Ontario starting to creep up in the last few years which has prompted younger, first time homebuyers into the homeownership market. With record-low interest rates holding steady, it’s a pretty low-risk financial investment, especially with the value of real estate in the city on the steady rise.
According to the latest statistics, the average sale price of a home in London, Ontario/St. Thomas was $271,920 as of March 2016, making it still one of the most affordable cities to buy real estate in Canada. Take a look at the table below so see how this compares to other cities across Canada:
Deciding whether you should continue renting or dive into buying a place is a question that a lot individuals are facing nowadays. One of the best ways to crunch the numbers is with a professional. Why not make an appointment with a mortgage broker to talk numbers? There’s no risk, no commitment and you’ll be better prepared to make a formal decision. Even if you are a few years away from getting into the homeownership game, it’s always good to have a financial plan in place for when the time comes to move forward.
If you’re interested in getting pre-approved, click here to get started online with our easy, secure online application form. Otherwise, let’s set up a time to meet in person and take a look at what your options might be.
Thanks for reading,
Your London, Ontario mortgage brokers