Sometimes people have the misconception that it is cheaper to purchase a house with a monthly mortgage payment than to rent based on comparing the mortgage payment to monthly rent. However, in actuality this assumption could be incorrect as there are many expenses involved with home ownership that need to be taken into consideration such as:
• Higher electric power bills
• Municipal water bills
• Insurance premiums are much higher
• Maintenance costs
• Property taxes
• Future increases in mortgage interest rates
• Potential decline in property values
Once these home ownership expenses are taken into consideration the cost of renting may be far less on an annual basis. Accordingly, the assumption that home ownership is less costly may truly be incorrect given the above expenses that are often forgotten about and not taken into consideration.
We hope the information discussed has given you some insight into home ownership and how it may affect you. We at Allan Marshall & Associates Inc. are always available free of charge to discuss any matters dealing with your financial situation. Please visit us at www.wecanhelp.ca or don’t hesitate to call us at 1-888-371-8900.