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To Rent or to Buy – a personal decision, we’ve all made at least once before. People argue Real Property ownership is as a safety net, an ever-appreciating asset, that provide shelter or income for generations to come. On the other hand, home ownership is a responsibility, it disrupts your mobility, it can add costs / inconveniences to your life. Both of these perspectives are true. In this article I’ll break down exactly what monthly expenses you will incur with your home purchase; in hopes to help you decide whether to rent or buy.

Your Mortgage

The above charts show the money you’d spend on a mortgage each month. A mortgage is broken into two portions, the interest, and the principal. With a 4.54% mortgage rate which is the lowest rate you can currently achieve with a fixed term (circa August 2022), we pay lots of interest and not much principal. When interest rates go down, the amount of interest vs principal evens out to about 1:1 and overtime your fixed payment will slowly become almost all principal and no interest. The reason I chose to present your mortgage payment this way is because your principal is the amount of money, you pay off your mortgage each month; in other words, if your home value does not decrease, it’s money you will get back when you sell.

Insurance, Property Taxes and Maintenance

Insurance plays a relatively minor role in monthly expenses, but it depends a lot on the type of home. An older home with a less flood resistant basement (due to grading, lack of a sump pump / weeping tiles), will cost more. A larger house (despite it’s age) will also cost more each month. The cheapest insurance policy I have ever seen in recent years is $90 / month – with the absolute bare minimum coverage. Policies can go as high as $300 / month depending on the type of property purchased and its size.

Property Taxes is always more expensive than people think. Usually between 200 – $600 / month. This is a major cost people overlook when budgeting. Every house has been ‘assessed’ by the city, this value is used to calculate your property taxes. You can use maps.edmonton to find 2022 property taxes. The ‘Mill Rate’ is the percentage used to calculate your yearly taxes based on your properties tax assessment. Follow this link to estimate your property taxes.

Maintenance is worth discussing as renters do not have to take the same steps as owners towards keeping their property in good shape. Deferred maintenance is a term used to describe the value discount a property can bare if it’s not maintained. Here’s an example: if you don’t have your gutters cleaned out every spring or fall – weeds accumulate and the intense moisture causes your roof to fall apart earlier than expected. Whether you realize it or not, you’re likely spending approximately 100 – $200 a month on keeping your home in properly working order. Normally this expense is in the form of one large payment, for a new window, plumbing work, etc.

These pictures are a good example of how all expenses increase as your mortgage increases, normally though these additional expenses are tied to house size rather than the actual price – so an expensive smaller home will likely maintain a cheap insurance and maintenance budget / month.

Dayneris quintana
Dayneris quintana
We recently had the pleasure of working with Logan to sell our apartment located in Edmonton while we live in Calgary, and we couldn't be happier with the results. Logan did an excellent job making suggestion for a better sale and renovating the apartment, transforming it into a stunning space. Thanks to his efforts, the apartment sold quickly and for above the asking price. Communication was seamless throughout the process. He kept us informed at every stage regarding the renovating process and the interest and in the apartment. We highly recommend Logan Patterson for his dedication, professionalism, and exceptional results. Thank you for your outstanding service!
Clarence Bouwsema
Clarence Bouwsema
Logan helped make the whole process easier and stressful free.
Darren Rankin
Darren Rankin
Couldn't have asked for a better realtor than Logan. Hard-working, punctual, and dedicated, he goes above and beyond regardless of whether you're buying a cozy condo or a dream home. His deep understanding of the market and strong rapport with fellow realtors make the process smooth sailing. Plus, his wealth of advice and keen eye for detail saved me money by catching things others might miss. Highly recommend using his broker, especially if you're a first-time homebuyer. Thanks for everything, Logan! PS: If you're a first-time homebuyer, just use his broker. Trust me, you won't regret it!
Michael Coderre
Michael Coderre
Logan was a pleasure to work with. He made recommendations on what would be the best money spent to sell our home quickly, and even lined up the trades and provided quotes for the work. In my opinion his services are a step above my past experiences, and I would highly recommend his services to any home seller. The fact that we sold the home for over asking price with no conditions was definitely the icing on the cake! Thanks Logan.
Harry Yau
Harry Yau
The whole experience selling my property was as easy as it could have been. Logan was incredibly helpful, keeping us up to date with amount of people interested, offers, and counters on a timely basis. He gave us comparable properties to help calibrate our asking price, and kept us updated on sale trends in the Edmonton market. He worked hard for our business, is very professional, and was always understanding of our availability limitations (total of 3 partners making decisions together from 3 different cities). I would hire him again, and would certainly recommend him to anyone looking to buy or sell in Edmonton.
Jaymee Sison
Jaymee Sison
Logan made the whole sale process from start to finish very easy. I live in a different city from where the property is located so I wasn't readily available to help with the sale. Logan coordinated photos, showings and best of all, he was respectful and mindful of our tenants who were currently living in the property. Thank you for your hard work Logan. We couldn't have been happier with the sale! $21K over list price!
Reid Tames
Reid Tames
Logan was phenomenal and super accommodating when it came to helping us buy our first home! We had so many questions and were challenging with our schedule but he was able to make it all work for US! Would highly recommend to any friends and family!!
MVP Power Inc
MVP Power Inc
Logan did an amazing job! He was very patient as we had seen several houses and willing to meet us any time. He was very knowledgeable about the neighbourhoods we wanted to buy in.

Author Logan Patterson

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