Mortgage payments nearly twice cost of average rent in Brampton: report
Published February 6, 2024 at 12:27 pm
Homeowners in Brampton are shelling out nearly double the funds in mortgage payments compared to what renters pay every month even as the price of an average rental unit continues to climb.
The numbers come from real estate website Zoocasa, which looked at the gap in price between what the average renter pays across Canada compared to a homeowner’s mortgage.
Twenty-six markets were examined in the new report which found prairie cities like Winnipeg and Regina had the smallest gap between rental and mortgage payments. But of the more than a dozen Ontario markets on the list, Brampton homeowners are paying significantly more than their rental counterparts.
The report found that in January, renters in Brampton paid an average of $2,264. But with an average house price of $987,085, Zoocasa says the average mortgage payment is $4,521 – just $7 shy of being two times higher than the average rent for a difference of $2,257.
Mississauga fared slightly better with an average rent of $2,560 and average mortgage payment of $4,705 for a difference of $2,145.
Burlington came in as the Ontario market with the largest rental-to-mortgage payment gap of $2,241, and even Toronto had a smaller difference in payments at $1,970.
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Over the last two years, climbing interest rates have had an impact on rental prices and home sales. The report said rental rates have jumped 22 per cent during that time, while five-year fixed mortgage rates dropped as low as 4.89 per cent by the end of January.
Depending on the region, Zoocasa says it may be more affordable to rent rather than buy, and those that are looking to make a purchase may get a better deal in the townhouse market.
“Even as the national average price of a townhouse at $660,000, buying one remains a more affordable option compared to buying a home at the benchmark price in most of Ontario or British Columbia, where average home prices are nearly double that,” the report reads.
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