The hardest thing for renters is to get into owning their first home. Whether it’s a condo, duplex or single family home, the down-payment and Trudeau stress test make it next to impossible. But we’ve talked about that over the past years multiple times.

Last week I heard a great ad from a mortgage broker. Sure, the radio ads are only 30-seconds and it’s a little misleading and leaves out all the details, but the numbers are correct and reinforce why “getting in” is the hardest step – but so worth it over the long term.

The numbers don’t matter in the ad, but the logic does: If you’re paying $1,500 rent over the next five years, you’ll be paying $90,000 to your landlord. A $250,000 home will cost you around $1,440 in mortgage payments and will give YOU $30,000 in paid down equity in the five years. Call us…

Plus, you build equity a second way: Through the increase in property values. Some years it’s a ton – some years it’s nothing – but historical averages (just search for that term) show that equity builds around 5 percent a year. Right now, excluding the insanity of Vancouver and Toronto) the market is on fire for any homes under $500,000.

I’m in a duplex where the other half sold in November. Fast forward to today, and the lady has already seen the market value increase by over $60,000! That doesn’t happen each six months, and she doesn’t care as she’s not selling. But that’s pretty impressive – but only to make a point that you’re never building equity off your monthly payments or ever seeing a value increase if you’re renting!