Should you rent or buy your home in 2025?

Deciding whether to rent or buy a home this year? This is a big decision that requires careful thought and planning. There are lots of factors to take into account, such as your budget, location preferences, and long-term goals. There isn’t a wrong answer, as renting and buying both offer distinct advantages, but one option is likely a better fit for you. Time to find out which path suits your needs best!

When renting makes most sense…

You have budget constraints 

It’s no secret that buying and owning a home requires huge amounts of financial planning and commitment. From saving for a down payment to managing closing costs and ongoing mortgage payments, most Canadians take several years to prepare themselves for homeownership. If your current budget doesn’t fit with this level of financial commitment, that’s okay! Renting offers you the chance to live with fewer upfront costs and less significant financial demands. Plus, if homeownership is still a goal for you, you can use your time renting to start saving for a down payment and other home-related expenses. 

You don’t know where to settle

Since buying a house is a big process that involves a lot of work, you should be ready to commit to it for the long haul. Therefore, if you aren’t quite sure where you want to live long-term, buying a home might not make the most sense right now. Buying a property, and selling it shortly after, can result in financial loss, not to mention the loss of time and effort on your part. It’s usually not worth buying a home just for the sake of doing so. When you are unsure of your future plans and where you see yourself down the road, renting is a great shorter-term solution! It provides you with stable housing while not requiring a multi-year commitment.

You don’t want to maintain a home

At the end of the day, some people just aren’t interested in maintaining a house. As a home owner, you are responsible for keeping your home clean and in good shape, and the labour and costs of doing so fall on you. It can be expensive to keep up with repairs and maintenance, and cleaning a house can definitely be a time commitment, depending on its size. Many people prefer to leave those responsibilities with a landlord, and enjoy having a home with fewer strings attached. 

When buying is the right move…

You have your down payment saved up

People who have spent years saving for a down payment clearly have homeownership on their mind as a top priority. If you have reached the point where you feel confident you can make a solid down payment, now might be the right time to start house hunting. Take some time to evaluate your finances and budget, and what percentage you are hoping your down payment will cover. You don’t need to rush if you don’t think you are quite there yet! However, it’s good to start gathering an idea of when you think you can see yourself jumping into the market. 

Your long-term plans are clear

Purchasing a home means committing to one place long-term. If you know where you want to live, buying a property in that area may be a good move. Maybe you currently live there as a renter, or you have been planning to move there for a long time. Homeownership provides you with stability and the chance to start building equity in the market. Owning a valuable asset is likely to benefit you in the future, so putting down roots is a good idea when you know you are in the right place.

Interest rates align with your timing

While you shouldn’t buy a home solely because of interest rate trends and nothing else, it’s good to monitor where rates are headed. If an optimal buying period is approaching, and you are ready to become a home owner, the timing can be beneficial. Right now, we are in a period of interest rate decreases, meaning mortgage rates are lower today than they were one year ago. Purchasing a home during periods of lower rates can save you money on monthly mortgage costs and cut down on the overall cost of homeownership. Working with a broker can help you understand where rates might be headed, and how this will affect your buying plans.

The decision to rent or buy is one that all Canadians make at some point in their lives, and there is no right or wrong choice. Instead, it’s important to evaluate your own situation and readiness to help you choose the path that fits you best. If you think homeownership is on your horizon, reach out to a mortgage broker today! It’s never too early to get started on the planning process. The more prepared you are, the more success you will have in the housing market. 

If you have any questions about your mortgage, get in touch with us at Clinton Wilkins Mortgage Team! You can call us at (902) 482-2770 or contact us here.