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Should I Rent or Buy?

Take the quiz to help you decide!

Rent or Buy Quiz

There are 11 questions, all you have to do is write down the letter that best describes you and then count how many of each letter you have. The letter that you have the most of will correspond with an answer at the end of the quiz. I hope you find it helpful and fun!

1. Is your income reliable and continuing?

A) I receive regular pay cheques with a set income amount

B) I receive variable pay and the amount can fluctuate

C) Neither of those apply to me

2. Do you have savings available to put towards a down-payment?

A) Yes

B) No

C) Maybe

3. How is your credit?

A) Good

B) Bruised

C) Other or not sure

4. Do you owe on numerous credit cards?

A) No

B) Yes

C) Not sure

5. Do you have pets?

A) Yes

B) No

C) Not right now, but I want to get one

6. Do you need to make your space your own?

A) Yes

B) No

C) Doesn’t matter to me

7. Are you planning a life change soon? Location change, parenthood, going back to further your education etc.

A) Yes

B) No

C) Not sure

8. Do you know which neighborhood you want to live in?

A) Yes

B) No

C) Doesn’t matter

9 . Do you have experience making any large monthly regular payments?

A) Yes

B) No

C) Not sure

10. How do you feel about property repairs and maintenance?

A) I don’t mind doing them myself

B) I’d rather call someone else to do them

C) I’m not sure yet

11.  Are you just meeting monthly debt obligations or do you have extra funds at the end of each month?

A) I do have extra funds available

B) My budget is pretty strict

C) I’m kind of somewhere in the middle of those two depending on the month

Mostly A’s: It looks like a home purchase may be in your future. Your steady income and good credit makes mortgage financing a viable option.  Your need to customize your space makes ownership more desirable than renting as landlords often have restrictions on what kind of alterations you can make to your living space. If you are currently renting and thinking of taking the next step, you’re half-way there; be prepared for a mortgage payment and property taxes as well as all of the extra costs that come with home ownership like repair and maintenance costs. 

Mostly B’s: Renting may be your best bet for now. Whether it’s your debt level or maybe your income isn’t steady, it’s better to buy when you’re ready than to rush into a large purchase that isn’t always easy to get out if it isn’t working out for you. If the idea of fixing your leaky tap or painting your deck doesn’t interest you, renting may be a lot more appealing as those repairs and maintenance can be done with a call to your landlord. Renting may make sense for the budget conscious and for those who may not yet be settled in their life due to just finishing school, changes in a romantic relationship such as a break up or an engagement. It is expensive to buy a home and just as expensive to sell that home if it is not the right time for you to make the commitment of being a home owner.

 Mostly C’s: You fit somewhere between rent and buy and it may make sense for you to seek the opinions of the professionals. It’s always a good idea to know how you look on paper and if you have a strong financial profile you should not have any issues in qualifying for financing when the time is right for you.

This quiz is not meant to replace the advice of a professional. Knowledge is power when it comes to the housing market and before you make a decision, do your research. Don’t be afraid to ask your friends and family for professional referrals to ensure you can trust and speak freely and openly about your financial goals. Call a realtor to see what the price range is for properties you like and ask them what kind of rent you would have to pay to live in that same area as that may help you with the decision making process. After you have those two numbers, contact a mortgage professional to see if you can qualify for the mortgage and if you are comfortable with the payments required in that price range with the down payment amount you have available.

You should now have sufficient information to determine whether it is better for you to rent or to buy a home of your own.

As always, if you would like to explore the mortgage options available to you or just have a question, don’t hesitate to contact your professionals with personality The MortgageGirls at 866-932-8412 or email info@mortgagegirl.ca. Stay in the loop by following us on Twitter @Mortgagegirlca

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