Here are the cities near Toronto where it’s smarter to buy than rent a home right now

Rent or buy? That’s the question many current and potential Toronto residents are asking as the GTA’s volatile real estate market swings once again, this time toward homeownership, though not universally.

“As interest rates continue to rise this year, many are shifting their real estate goals from buying to renting,” read a report released Wednesday by Zoocasa’s real estate data analytics team.

“Although, according to the Toronto and Greater Toronto Area (GTA) Rent Report from, average rental prices in the GTA are increasing 19% per year.”

One might assume that means we’re screwed (financially) anyway, but that’s not necessarily the case, depending on where you want to live.

Yes, interest rates make buying a home in Toronto difficult, but the average selling price of these homes have been in decline in many areas of the GTA for months.

With house prices down from all-time highs in February and average rent prices soaring, people in some parts of the region may be even more likely to buy at this point than rent.

Zoocasa has calculated some numbers to help people decide whether now is the right time to buy or continue renting, by comparing the most recent data available on GTA rental prices (as of June) to average prices. houses in July.

The research focused specifically on condominium apartments, comparing the average rental price per month for a condo to the average monthly mortgage payment for a condo (calculated assuming a 20% down payment, 30-year amortization and a 5-year fixed interest rate of 4.49%).

What they found — surprise surprise — is that the situation varies considerably from region to region.

Mississauga and Oshawa both have terms in place for a market where buying will cost you less per month (currently) than renting, if you already have a down payment on hand.

The average rent for a condo in Mississauga is $2,820 while, based on average condo sales prices in the area, a mortgage calculated using the above factors would be around 10% cheaper at 2 $531.

The gap between rents and mortgage prices has widened further in Oshawa, where the average condo rent is $1,787 and the average mortgage (based on the current average condo price is $379,510) would be $1,529, a difference of over 14%.

“For Brampton and Toronto, the price difference is relatively small, and since rental prices are expected to continue to rise, buying in these cities can result in long-term savings,” advises Zoocasa.

“On the other hand, in Oakville, the price to buy is significantly higher than to rent, which may be driven by the demand for buying condominiums in the city.”

The bottom line: It’s still cheaper to rent than to buy a condo in much, but not all, of the GTA this summer. Only time will tell how long this will remain the case.

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