Should I Rent Forever? What You Need to Know

December 13, 2023 | Posted by: Ron Chan

Should I Rent Forever - Winnipeg MB

You’ve read the news. You’ve heard how mortgage interest payments are up nearly 90% since start of Bank of Canada rate hikes. You’ve also noted that experts have stated that interest rates are unlikely to fall back to early pandemic levels when they were around 2%. You’re also being told that well over 2 million mortgage holders in Canada will face ‘interest rate shock’ in the next 2 years. So on and so forth. After being on the fence about getting a mortgage you now find yourself asking - should I rent forever?

We’re glad that you typed that query into your Google Search bar and landed on this article. In fact, we wrote it for you.

You see, there is really no scenario where it is recommended that someone (in Canada, that is) should rent for their entire lifetime. In doing so, you literally throw your hard-earned money away each month while concurrently paying off someone else’s mortgage. To reiterate - you’re paying off someone else’s mortgage. The concept is ridiculous when you think about it. It should be your own mortgage that you’re putting that same monthly rental expense towards. We know what you’re thinking; it’s not the same thing because you don’t have the downpayment required to get a mortgage payment down to the same size of the rent your paying. 

Are you sure about this?

How to Make Mortgage Rates  Mirror Your Rental Rates

Did you know that there are first time incentive programs available in Canada right now? These programs can effectively lower your downpayment requirement without inflating forthcoming monthly mortgage payments. Moreover, there is also a new (as of April 1 2023) tax-free First Home Savings Account (FHSA) program (view here). This program gives first time buyers (you) a path forward when it comes to building up a downpayment that may be significant enough to make monthly mortgage payments mirror what you’re currently paying for rent! These program offerings are in addition to the lower than advertised mortgage rates that a professional broker can get you access to, or lower interest rates made available via private lenders (instead of Canada’s big banks). 

How did you not know about all of this? You’re not alone, as thousands of Canadian renters have no idea what resources are available to them. 

Now let’s consider your initial question once again. Should you rent forever, knowing what you now know? Definitely not! All that you need to do is contact a mortgage broker to discuss your way out of the perpetual rental trap. If located in the Greater Winnipeg area, reach out to mortgage specialist Ron Chan right away for a friendly noncommittal conversation. Call 204.290.9950 today. 

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