This content is provided through a paid partnership between Moving2Canada and Scotiabank.
Hey there,
Did you know Canadians have traditionally been a nation of homeowners?
But home ownership isn’t the right move for everyone. As a newcomer, there are important pros and cons of renting and home ownership you should weigh up.
Pros of renting
Renting offers flexibility – you can exit your lease and move out if you give the appropriate notice to your landlord.
Short-term options may be available if you aren’t sure where you want to live.
Renting can be less stressful than owning. Since the landlord is responsible for repairs and maintenance, you — the renter — will spend less time, money, and effort if something in your home breaks.
Cons of renting
Depending on factors like your location, lease terms, and the age of your rental home, you may be vulnerable to unexpected rental increases.
You cannot usually renovate, upgrade, or change your home without your landlord’s approval.
Renting a home does not build equity or wealth for the tenant. Renters may find it more difficult to build their credit rating. Though, with Scotiabank’s partnership with Nova Credit, eligible clients can now use their foreign credit history reports to apply for a higher credit limit on their credit card. You can learn more about this exciting partnership here.
Pros of buying a home in Canada
As you pay off your mortgage, you build equity that can benefit you and your family later in life.
Buying a home means that you can choose exactly how to decorate and make aesthetic and structural choices to suit your needs.
As an owner, you choose if the property is subsequently sold, while renters may need to move out if the owner decides to sell or otherwise legally evict the tenant.
Cons of buying a home in Canada
Home maintenance and upgrades are entirely your responsibility.
If you ever want to move from your home, it may be more complicated to leave a home you own rather than one you rent.
Homeowners are typically responsible for paying property and other taxes, which may increase with the value of the property.
Find Your Home in Canada with Scotiabank
The decision to rent or buy a home in Canada is affected by many factors, including location, your budget, family size, and employment.
To ensure you know as much as possible to guide your personal decision, book a free meeting with an advisor at Scotiabank. The Scotiabank team can provide guidance and advice at any point, working with you to ensure you have the financial support you need to navigate the process of finding your home in Canada.
Legal Disclaimer
This article is provided for information purposes only. It is not to be relied upon as investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this article, including information relating to interest rates, market conditions, tax rules, and other investment factors are subject to change without notice and The Bank of Nova Scotia is not responsible to update this information. All third party sources are believed to be accurate and reliable as of the date of publication and The Bank of Nova Scotia does not guarantee its accuracy or reliability. Readers should consult their own professional advisor for specific investment and/or tax advice tailored to their needs to ensure that individual circumstances are considered properly and action is taken based on the latest available information.
