A recent report showed that the average cost of rent on a two-bedroom apartment in the HRM is around $2,500 per month. If you’ve had to move from one apartment to another lately, you likely know that many apartments are renting for much more than that — especially if you want anything new or modern.
Finding decent rental accommodations pretty much anywhere in Canada is becoming harder. In fact, the Canada Mortgage and Housing Corporation (CMHC) states that in 2023 the national vacancy rate reached its lowest recorded rate since recording began in 1988 — just 1.5% of rentals have vacancies, which is not enough to keep up with demand.
House prices have risen dramatically in recent years too, which has left many people priced out of the housing market. It can feel like you’re trapped renting forever, but this isn’t actually true. If you buy a new mini home, your monthly mortgage payments could be as low as $1,200, plus if you’re choosing to place that new home in a land lease community, you will need to account for lot fees starting at $315/m, depending on where you choose to live. Even with the mortgage and the lot rent, this is still significantly more affordable than the average rent in the HRM!
Imagine in 10 years—if you continue renting at $2,500 per month, you’ll have spent $300,000 in rent, and you won’t have anything to show for it except a place to live. On the other hand, if you buy a home, you could have accumulated thousands of dollars in equity that could later be used to upgrade your living situation or provide you with a financial cushion for retirement.
Many renters don’t realize that they can afford a mortgage that’s actually lower than their current rent payments. In fact, with today’s low interest rates and various loan programs available, homeownership can be within reach for many who thought they’d have to keep renting forever.
Renting didn’t use to be such a precarious business and landlords never used to raise rents so often or by such huge increases year to year. Sadly, so much has changed. Say you find a decent rental for that $2500. Your landlord is allowed to increase next year or the year after, making it even harder to budget or save for the future.
In contrast, when you buy a home with a fixed-rate mortgage, your monthly payments are predictable for the life of the loan (typically 25 or 30 years). This stability means you know exactly how much you need to set aside each month, and you won’t face sudden increases in your housing costs. For many, this peace of mind is one of the key benefits of owning over renting.
When you pay rent, you’re essentially covering the cost of someone else’s mortgage and helping them build equity in their property. But when you pay a mortgage on your own home, every payment you make builds equity for you. Over time, that equity adds up, increasing the value of your investment. In contrast, rent payments don’t offer any return on investment; once the rent is paid, it’s gone, without so much as a thanks from the landlord.
By owning a home, you stand to benefit from that appreciation. If you purchase a home now, you may find that its value rises over time, which could allow you to sell for a profit down the road. In contrast, renters never have the opportunity to benefit from real estate appreciation—they’re simply paying to live in someone else’s appreciating asset.
Also, you may not realize that Homeownership comes with several tax advantages that renters miss out on. In Canada, you can claim tax deductions on mortgage interest and property taxes, which can save you money come tax season. This means that your actual costs of owning a home can be lower than they appear on paper, especially in the early years of your mortgage when most of your payments are going toward interest. Renters, on the other hand, get no such tax breaks.
A new mini home offers affordability, flexibility, and a sense of pride in ownership that renting simply can’t match. Plus, it’s often more affordable than you might think. If you’ve been considering buying, now might just be the perfect time to take the leap into homeownership.
Ready to stop paying someone else’s mortgage and start building your financial future? Contact us and we can advise you on the home you can afford, and how to make your home ownership dreams a reality.
