Rent vs. Buy in 2025: Should You Take the Leap?

Jun 5

2 min read

Thinking about making the jump from renting to owning a home?

You’re not alone. With rent prices rising across the country—and mortgage rates showing signs of softening—a lot of Canadians are asking:

“Is it finally time to buy? Or should I keep renting?”

At Swivel Mortgage Group, we walk Canadians through this decision every day. Here’s a simple, fact-based guide to help you understand your options and what makes sense for you in today’s market.

📊 What’s Happening Right Now?

Rent prices are sky-high.In major cities like Toronto, it’s now normal to pay over $2,500/month for a one-bedroom. Calgary and other growing markets aren’t far behind.
Mortgage rates are trending down.Many lenders are now offering insured 5-year fixed rates around 4.19%—giving buyers more breathing room.
Condos are more attainable.The average entry point in many urban centres is around $500,000—and at that price point, you only need 5% down.

Let’s walk through a real-life example.

💡 The Real Numbers: Rent vs. Buy for a $500K Condo

📉 Renting:

Monthly Rent: $2,500
Annual Rent: $30,000
5-Year Total: $150,000 paid to your landlord
Wealth Built: $0

🏡 Buying:

$500,000 condo purchase with 5% down at 4.19% (insured mortgage)

Down Payment: $25,000
Mortgage Amount: ~$475,000
Monthly Mortgage Payment: ~$2,550
Condo Fees + Property Taxes + Insurance: ~$700
Total Monthly Cost: ~$3,250

After 5 Years:

Principal Paid Down: ~$55,000
Equity (principal + down payment): ~$80,000
Potential Home Appreciation @ 2%/yr: +~$52,000
Estimated Net Equity: ~$132,000

✅ You’re not just paying to live—you’re building wealth every month.

🧠 What Should You Consider?

✅ 1. How Long Are You Staying Put?

If you’re planning to stay for 4–5 years or longer, buying often makes more sense. If you’re unsure or may relocate soon, renting could be the safer option.

✅ 2. Are You Financially Ready?

Do you have at least 5% down saved?
Are you comfortable with a slightly higher monthly payment in exchange for long-term equity growth?
Do you have a grasp on various down payment savings vehicles:
- The First Home Savings Account (FHSA)
- The RRSP Home Buyers’ Plan
- The Tax-Free Savings Account

We’ll help you check all the boxes and even show you how to combine these programs for maximum benefit.

✅ 3. Can You Handle Ownership Costs?

Owning means:

You don’t need permission to paint the walls
You’re protected from rent increases
You’ll need to plan for maintenance (even in a condo)

If stability and control matter to you—ownership gives you both.

🤔 So… Should You Buy?

If You Value…	You Might Consider…
Flexibility	Renting
Lower monthly outflow	Renting
Long-term wealth building	Buying
Housing security / stability	Buying

There’s no one-size-fits-all answer—but if you’re thinking long-term, buying can be a powerful financial move.

🧭 Final Word: It’s Not Just Math—It’s Your Life

Buying a home is one of the biggest decisions you’ll ever make. And it's not just about the numbers—it's about your goals, your family, and your future.

At Swivel, we don’t just give you mortgage advice—we help you build a plan.