Should I Rent or Buy a Home?

Should You Rent or Buy? Here's What to Consider Before Making the Leap

Have you been renting for a while and starting to think it might be time for a change? Naturally, the next big step many consider is buying a home. After all, owning a home is one of the most significant financial commitments most people ever make. But with real estate prices at all-time highs, more and more Canadians are postponing — or rethinking — homeownership altogether. If you’re looking for a new place to live, you’ll probably find yourself wondering: Should I stick with renting, or is it time to buy?

The answer depends on a number of personal factors — like your lifestyle, financial situation, and long-term goals. Everyone needs a place to call home, but what that looks like might be different for you than it is for your neighbour.

Are You Ready to Be a Homeowner?

Homeownership is about more than just having a down payment — it’s about being emotionally and financially prepared for the responsibilities that come with it. Readiness means planning ahead, saving consistently, and being patient. You’ll need a strategy to build your savings, understand the hidden (and not-so-hidden) costs of buying property, and be ready to take on maintenance, repairs, and the commitment of staying put. If that still feels out of reach right now, there’s nothing wrong with continuing to rent while you prepare.

Why Renting Might Be the Better Fit

For many Canadians, renting can be the smarter choice — especially if flexibility is a top priority. If you like being able to move easily, aren’t sure where you want to settle, or need to keep your options open for work or school, renting gives you the freedom to do just that.

Renting also simplifies your finances. Your monthly rent often includes some utilities and removes the stress of surprise expenses like a broken furnace or leaky roof. If something goes wrong, you can usually just call your landlord — not your bank account. That can free up cash for other priorities like saving for a future home, investing, or simply enjoying life.

Drawbacks of Renting

While renting can be more flexible and less financially demanding in the short term, it does have limitations. You can’t always customize your space, and you’re subject to your landlord’s decisions — including the possibility of having to move if they choose to sell the property or raise the rent. And unlike mortgage payments, rent doesn't build equity.

Reasons to Consider Buying

If you've been saving diligently, have a stable income, and are ready to plant roots in a community, buying a home may be the right move. Owning property means your monthly payments are working toward something — building equity and increasing your net worth over time. You also gain full control of your space. Want to knock down a wall, paint your kitchen cabinets, or add a deck? Go for it — no permission required.

Plus, as your home grows in value, so does your investment. If you hold onto it for the long term, that equity can become a powerful financial asset.

Downsides to Homeownership

Still, owning a home isn’t all upside. The ongoing costs — mortgage payments, property taxes, insurance, and unexpected repairs — can add up quickly and bring financial pressure. Buying also ties you to a location, which might not be ideal if you’re not planning to stay put for several years. And while real estate values tend to increase over time, markets can shift — and you might not always sell at a profit.

Tip: Make ABCU Part of Your Homeownership Plan

Whether you're ready to buy soon or just starting to save, we can help you get there. With personalized support, competitive savings options, and a community-first approach, ABCU is a smart partner in your homeownership journey.