Quote:
Originally Posted by Shazam
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And don't feel bad if you rent. Only 63% of Canadians own their place.
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Totally off topic, but kind of related.
How much does the type of rhetoric of 'owning' a home play in this. Let's be real, you don't come anywhere close to 'owning' it for a long time after you start payments.
Even at 3%, 5 years into a 400k 25 year mortgage, you still owe 340K.
I'll admit to a bias, so please feel free to dispute. But after 10 years, you've paid 100k to carry that mortgage.
So if after 10 years, you've paid a quarter million dollars to owe 275K on a 440K asset, you would need to be able to sell that house for 525K to break even. To say nothing of the opportunity costs of pulling out 40K for the down payment, or any of the other costs associated with home 'ownership'.
Totally simplistic, and you would need to factor in Rent and the difference in costs + savings interest vs debt servicing to get a better idea. But I really don't think reinforcing the notion that you 'own' a home because you're tied into a very costly loan is helping.