Home ownership is more affordable than rent in these Toronto locales

Toronto condo prices have reached historic highs with a 6.5% year-over-year increase in Q2 2018, up to $603,480.

Accompanying record-low rental vacancy rates of below 1%, these factors are increasingly pushing home ownership as the more sensible path in sections of the red-hot market, according to a new analysis by real estate information firm Zoocasa.

Using second-quarter pricing data from the Toronto Real Estate Board, the study found that monthly payments for a mortgage are lower than those of rent in 21 out of 35 City of Toronto neighbourhoods. This is assuming a 20% down payment, a 3.05% mortgage interest rate, and a 25-year amortization, while not taking into account utility costs, insurance, condo fees, and property taxes.

Read more: Will large-scale transit plan make condo investment lucrative again?

The following neighbourhoods (with TREB notations) have average monthly mortgage payments lower than the average rent:

• W05: Black Creek, York University Heights - buying saves $606/month (average rent of $1,939; average mortgage of $1,333)
• W09: Willowridge, Martingrove - buying saves $600/month (average rent of $2,107; average mortgage of $1,507)
• E10: West Hill, Centennial Scarborough - buying saves $576/month (average rent of $1,650; average mortgage of $1,074)
• W10: Rexdale-Kipling - buying saves $551/month (average rent of $1,834; average mortgage of $1,283)
• E11: Malvern, Rouge - buying saves $490/month (average rent of $1,751; average mortgage of $1,261)

Meanwhile, paying for a mortgage and paying for rent is roughly at the same level in these locales:

• C07: Willowdale West - buying saves $14/month (average rent of $2,341; average mortgage of $2,327)
• C14: Willowdale East - buying saves $12/month (average rent of $2,246; average mortgage of $2,234)
• C13: Don Mills, Victoria Village - buying saves $11/month (average rent of $2,064; average mortgage of $2,054)
• C15: Hillcrest Village, Bayview Village - buying saves $10/month (average rent of $2,011; average mortgage of $2,001)
• C01: Downtown - renting saves $51/month (average rent of $2,563; average mortgage of $2,614)

Source: https://www.canadianrealestatemagazine.ca/news/home-ownership-is-more-affordable-than-rent-in-these-toronto-locales-245862.aspx