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

When does renting actually make more sense?

Renting makes more sense than buying when your time horizon is short, your job situation is uncertain, or you are not sure which part of Saskatoon you want to commit to yet, because the closing costs on a purchase, 4 to 6 percent of the price between commission, legal fees and adjustments, need years to earn back.

According to the Saskatchewan REALTORS Association, Saskatoon's benchmark price sits at $444,700, and a buyer who expects to relocate for work within 2 to 3 years, or who is still deciding between neighbourhoods, usually comes out ahead paying rent while deciding.

Renting also fits someone rebuilding credit or saving toward a larger down payment, since CMHC's minimum down payment rule requires 5 percent up to $500,000 and 10 percent on the portion above that, and reaching that number takes time for most first-time buyers.

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