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

Why does that not mean renting wins?

A lower monthly payment does not mean renting wins overall, because renting converts none of that payment into equity while a mortgage payment converts part of every payment into ownership, through paydown and any price appreciation. Looking only at the monthly number compares cash flow today against wealth building over years.

According to the Saskatchewan REALTORS Association, Saskatoon's benchmark price has trended upward over time, currently $444,700, and a mortgage payment on a 25-year amortization is engineered to pay down the loan balance completely by the end of the term, something no rent payment does no matter how long you pay it.

None of this means renting is a mistake, particularly for someone with a short time horizon or an uncertain next move. It means the comparison has to include the ownership side's equity and appreciation, not just this month's cash outflow, to be a fair one.

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