Torn Between Getting an Oakville Mortgage or Keep Renting?

The Benefits of having a home mortgage in Oakville

Owning a home is one of the most important long-term decisions you will make and your greatest asset. If at a stage of your life you need money for an emergency, you are able to borrow against your Oakville mortgage as a security for your loan.  

Even though it is possible to purchase a home with as little as a 5% down-payment in Canada, the banks do like first-time home buyers to make a down-payment of at least 10%. If you find a home you really want to own in Oakville, pay the mortgage  insurance that is charged to anyone who does not put down 20% or more on a home. Do remember though that the less you put down, the higher the amount you will be charged, which in the long-term can add up to a considerable amount of money.

However, there are many benefits to owning your own piece of real estate. You can make the home look just the way you want it, improve the garden, and if necessary, knock out interior walls for extra space. These are things you could not do when renting.  

Benefits for renting in preference to a Mortgage

Renting is often considered as a stepping stone for buying a home, but actually, there are numerous benefits to renting. With renting you do not have the cost of an Oakville mortgage every month, and often the rent is lower than a mortgage payment, especially compared to a mortgage that had a low-down payment and private mortgage insurance. You don’t have to worry about property taxes and insurance. You don’t have to pay maintenance costs such as a leaky roof; this becomes the landlord’s problem. Invariably repairs like this can prove very costly. Homes typically are not such good investments at the present time, appreciating at or only slightly ahead of the rate of inflation.

If you took your investment amount and invested it else where, over time you could end up much wealthier. Buying a house in Oakville and paying a mortgage regularly can add up. You have to ensure you have enough cash flow every month to avoid going into debt, and, a house is like a baby, it needs attention all of the time.