Home mortgages are nearly double rents in Mississauga
Published July 26, 2023 at 12:02 pm
As home affordability becomes increasingly more difficult in Mississauga and across Ontario, residents may be considering renting versus buying.
Mississauga has the third highest rents among 27 cities across Canada real estate brokerage Zoocasa analyzed in a new report released today (July 26).
Average monthly rents in June, sourced from Rentals.ca, are at $2,592.
But June mortgage costs are much higher — at $4,945 — assuming a 20 per cent down payment and a mortgage rate of 5.04 per cent amortized over 30 years on the average-priced home. The average price of a home was at $1,153,000.
Just a couple of weeks ago Zoocasa calculated numbers from the first quarter of 2023 and found the average home in Mississauga was $1,112,531, rent for that home would be $2,737, and average mortgage payments would be $5,146.
Either way, it is still less expensive to rent than to own a home in Mississauga right now.
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And home purchasers should consider interest rates, recently increased to five per cent. The size of mortgage payments also depends on how much a buyer can afford for a downpayment.
Mississauga is not alone.
None of the 27 cities analyzed was more affordable to buy in than rent, the report found.
However, there are several places where the rental and mortgage payments are similar but not in Ontario.
Winnipeg, Quebec City and Regina are three places that have similar rent and buying costs and they are more affordable. In Winnipeg, the average monthly rent is $1,475 and the average monthly mortgage payment at $1,493.
Zoocasa suggests record population growth is driving up both home prices and rental prices.
But a change could be coming in the market.
“At the same time, home price growth is starting to slow down in several large markets and could be an indication of an impending decline in home prices,” Zoocasa says in the report.
See the full report here.
