Joel DyckReal Broker SK Ltd.
Saskatoon · From the topic map

How do I run the buy-vs-rent math?

Running the buy-vs-rent math in Saskatoon means comparing your monthly rent against a mortgage payment plus property tax, insurance and upkeep, then adding the upfront legal fees of $800 to $1,500 and a home inspection of $400 to $600, and finally checking how many years it takes for equity paid down and price growth to clear those upfront costs.

Start with the monthly comparison. A mortgage payment at the Saskatchewan REALTORS Association benchmark of $444,700, plus property tax on 80 percent of assessed value and typical insurance, usually lands a bit above comparable rent in Saskatoon, though the gap here is smaller than in a larger city.

Then run the years. Most of that gap closes and eventually flips in owning's favour somewhere around the three-to-five-year mark, once enough of each mortgage payment has shifted from interest to principal and rent has risen a couple of times while your payment has not.

The math is straightforward once you have real numbers for your specific price point and down payment rather than citywide averages. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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