There comes a time when most of us may want to venture away from the renting market and become a homeowner. Despite the abundance of units in the city available for renting or leasing, many Montrealers dream of buying their own homes.
Unfortunately, the dream will most likely never be a reality, as right now renting in large Canadian cities is much cheaper than becoming a homeowner.
TL;DR The National Bank of Canada has released a report that confirms renting in major Canadian cities is cheaper than purchasing a house. Montrealers will want to hold onto their rentals for the time being, as owning a home in the city is far from realistic considering the current market. More details below.
Yes, the rapid growth of housing prices as well as today's rising interest rates have led to a National Bank of Canada report that confirms any city dwellers might want to hold on to their apartments for a while longer, or possibly forever.
It's true, you may be renting for the rest of your life. According to the report, renting in major Canadian cities has become much cheaper in the long-run than buying a house.
For example, the mortgage payment on the average two-bedroom condo rose to $2,000 a month by the end of 2018, which more expensive than renting a nice two-bedroom condo, according to Huffpost.
On the plus side, renting is only cheaper in Canada's three largest cities — Toronto, Vancouver and Montreal. So if you really were dead set on buying your own home, you could always just move away from the city life and settle in the suburbs.
If you are dedicated to city living and have no intentions of moving, professionals agree that Montrealers are safer staying in the rental market for the time being.
So, when will it become affordable and economically efficient to become a homeowner? As of now, no one really has an answer to that question. It looks like you might as well renew your lease now while you have the chance.