Rent or buy?
What would your rent buy in Burlington? Enter what you pay now and what you've saved.
| Mortgage payment | $1,778 |
|---|---|
| Property tax | $185 |
| Heat, hydro, water and home insurance | $485 |
| Upkeep and repairs | $303 |
| Total, about the same as your rent and bills | $2,750 |
At this budget, the typical house costs more in every neighbourhood. Try adding condo fees to look at condo townhouses and apartments, or more savings.
What each path leaves you with
If you rent, your savings stay invested and your rent goes up. If you buy, your payment stays the same until renewal and you pay down the mortgage. Nobody knows where prices will go, so here are three cases.
| Home value | Yours after selling | Renting instead | |
|---|---|---|---|
| Prices fall 2% a year | $328,612 | $34,892 | $63,354 |
| Prices stay flat | $363,541 | $68,074 | $63,354 |
| Prices rise 3% a year | $421,443 | $123,081 | $63,354 |
How this works: renters' savings earn 4% a year and rent rises 3% a year, so a renter pays $174,645 in rent and bills over five years against $165,000 for the owner, and the extra comes out of their savings. Owners still owe $277,290 after five years, and selling costs about 5%. The owner's rate is assumed to stay the same.
An estimate for planning, not a mortgage approval or advice. Property tax uses Burlington's 2026 residential rate of 1.015% on an assessed value of about 60% of the price, since MPAC still assesses homes at 2016 values. Upkeep is 1% of the price a year for a house and 0.3% for a condo. Owner bills use typical Burlington amounts (about $485 a month for a house). Closing costs include Ontario land transfer tax after the first-time buyer rebate, about $2,000 for legal fees, and sales tax on any mortgage insurance. Burlington has no city land transfer tax. Want a real comparison for your situation? Ask me.