If you visit the U.S. for longer periods of time – or are relocating for school or for work – you’ll need to decide whether home ownership or renting is the right option for you. Be sure you weigh all the pros and cons.
If you think you may be mobile for your job or educational pursuits, renting a property may provide the best short-term solution for your housing needs. With renting you’ll have:
Renting does have its draw-backs:
Plus, when you rent you lose out on the opportunity to build equity in a home.
Perhaps the largest benefit of home ownership is that ability to build equity. Consider this: a rental payment of $1,200 per month for five years equates to $72,000 in rent – funds which could have been applied toward a mortgage, generating equity. In addition, if you purchase:
With today’s low interest rates and wide selection of properties available at competitive prices, now may be the ideal time to make a real estate purchase in the U.S.
There is also that sense of accomplishment that comes with owning a home – whether it’s your primary residence, a long-awaited vacation property in the U.S., or perhaps an investment property for the future.
If you are considering purchasing a home in the U.S. there are many differences in obtaining a mortgage in the States as compared to Canada. The process is typically longer to apply for and secure a mortgage in the U.S. In addition, consider your credit history. Most financial institutions can only utilize U.S. credit history to underwrite a loan. If you are a Canadian citizen, it would be to your advantage to seek out a mortgage lender who can also look at your Canadian credit history.
To learn more about the differences and what to expect when seeking a mortgage loan in the U.S., please read:
Depending on your individual needs, the choice to rent or buy when visiting the U.S. is one that warrants careful consideration.
1 Consult your financial, tax, legal and other professional advisors prior to applying for a U.S. mortgage.