Difference between rent and condo mortgage in St. Catharines is $120/month, says study

A new report from real estate brokerage Zoocasa says that for $120 more a month, St. Catharines renters could be in condo units building equity.

While the average rent in St. Catharines was calculated to be $1,832 a month, the same study pegged the average mortgage payment on a condo to be $1,992 a month.

However, they caution that those hoping to make the jump will still need a nest egg. The monthly mortgage payments were calculated by assuming a 20 per cent down payment at a mortgage rate of 5.24 per cent amortized over 30 years on the average-priced condo.

Surprisingly, there was a handful of major Canadian urban centres where mortgage payments were less than monthly rent, including Edmonton, Winnipeg, Regina, Calgary, and Halifax.

However, in Saskatoon and Regina, the average condo was listed below $225,000, whereas the number in St. Catharines was $454,300, nearly twice as much.

According to Rentals.ca, rent increased annually by 8.9 per cent in August and the average asking rent in Canada reached a record high of $2,078. The average price of a condo in most cities has not grown at the same pace as rent, meaning condo investors can still make a profit in those cities.

Of the 12 cities with average condo mortgage payments lower than rent, Calgary has the largest difference in payments. The average rental payment is $1,920, while the average monthly mortgage payment on a condo is $1,355, meaning a condo investor could potentially earn $565 a month.