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

What is the break-even point?

The break-even point in a rent-versus-own comparison is the month when the total cost of owning, including one-time closing costs, drops below the total rent you would have paid over the same stretch. Closing costs on a Saskatoon purchase typically run 4 to 6 percent of the price, so a short stay rarely clears that upfront gap.

The Saskatchewan REALTORS Association's benchmark price and typical closing costs, commission, legal fees and adjustments together, both factor into that math, and a buyer who expects to move again within 2 to 3 years often has not cleared the upfront cost before moving on.

A longer hold pushes the break-even further in the owner's favour, because the same closing costs spread across more years of paydown and appreciation. Saskatoon's benchmark price has been rising rather than falling, currently $444,700, up 2.8 percent year over year according to the Saskatchewan REALTORS Association.

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