Renting still significantly cheaper than buying a home in Oakville, Burlington, Milton

By

Published July 9, 2024 at 12:44 pm

buy rent oakville burlington milton halton hills

Prospective homeowners might be shocked how much more it costs on a monthly basis to own a home rather than rent.

Zoocasa, an online real estate company, determined the cost difference between buying and renting Oakville, Burlington, Milton and Halton Hills.

“Most adults spend some time renting property before entering the real estate market,” said a Zoocasa spokesperon. “Understanding the financial difference between rental costs and mortgage payments is crucial to determining where to buy and rent in Halton.”

This knowledge, especially when renting while saving for a down payment, empowers people to make informed decisions.

In all areas covered by the Toronto and Region Real Estate Board, where the data has been drawn from, the average monthly mortgage payment is $5,049 and the average rent is $2,641.

The biggest disparity in Halton is in Oakville, where mortgage payments run $6,943 per month compared to rental costs of $2,700. In Burlington, mortgages average $5,005 and rentals are $2,740. In Halton Hills, mortgages average $4,949 and rentals are $2,779 and in Milton mortgages average $4,811 and rentals are $2,713.

The average home prices for May 2024 and rental prices for Q1 2024 were sourced from the TRREB Rental Report. Monthly mortgage payments were calculated using realtor.ca’s mortgage affordability calculator, assuming a 25-year amortization, a 20 per cent down payment, and a five-year fixed rate of 4.64 per cent.

According to the June 2024 Rentals.ca report, Canada’s average asking rental price reached a record high of $2,202 in May. This national milestone is comparable to the GTA’s lower-end rental averages.

The five most affordable rental locations in the GTA are Oshawa ($2,300), Simcoe County ($2,175), Innisfil ($2,107), New Tecumseth ($2,107), and Brampton ($1,921).

The most significant disparity between rental costs and mortgage payments among these cities is in Simcoe County, where the average mortgage payment is 135% higher than rental costs. Conversely, Oshawa exhibits the slightest difference, though mortgage payments are still 104% higher than rental costs.

Aurora, Caledon, Whitby, and Burlington have moderate rental prices ranging from $2,600 to $2,900, indicating a middle ground in affordability. Rentals with monthly costs below $2,300 are deemed affordable in the current GTA housing market.

Within all regions, renting is still more affordable than average monthly mortgage payments by leaps and bounds. However, building equity in a home often becomes a person’s most significant financial asset, which can also help build retirement savings.

INsauga's Editorial Standards and Policies advertising