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Should You Move On From Renting?
August 3, 2022 @ 3:12 PM by: Angela Robinson

Mortgage rates and home prices aren't the only thing on the rise - median monthly rent continues to go up year after year. To escape rising rent, you may want to consider buying a home so you can lock in your monthly mortgage payment and avoid future increases. 

 

Owning a home is more affordable than renting in much of the country. The big difference between renting and owning a home is, when you rent, that rising cost benefits your landlord's investment strategy, but it doesn't deliver any sort of return for you.

 

When you buy a home, your monthly mortgage payment works like a savings account. Over time, as you pay down your mortgage (and as home values rise) you build equity. Equity is important because it increases the amount of money you have in your home and helps you build wealth. So, it's the current value of your home minus your mortgage balance. 

 

Plus, when you buy, you lock in your monthly mortgage for the duration of your loan, creating a stable and predictable monthly payment, even when dealing with inflation.

 

Here's the bottom line with rates: As long as inflation continues to be an issue, interest rates will stay at higher levels. 

 

If you're renting today, but thinking about buying a home, it's important to look at the complete picture. Buying a home is a big decision, but having a trusted broker on your side is key. Reach out to us today at 780 701 3888 or marc@albertamortagepros.ca