There are benefits to renting and owning. Here are some things to think about as you consider your next move.

You can also use our renting vs. owning calculator tool to help clarify the difference in cost between the two. Keep in mind, the tool only provides an estimate, and a Homebridge Mortgage Loan Originator can help you produce an accurate payment calculation.

Let's take a look at some of the differences between renting & owning:

Benefits of Renting

  • Flexibility to move or upgrade at almost any time, depending upon the lease.
  • Build up savings; renters are responsible only for paying the monthly payment as stipulated by the contract, utilities (power, gas, and electricity) and for limited maintenance to the property.
  • Benefits tenants whose lifestyles do not allow them to purchase a home or whose incomes mean they cannot afford a mortgage loan.

Benefits of Owning

  • Stability and security
  • Tax benefits (owners can write off mortgage interest and taxes paid on the home on their income taxes*)
  • Earn equity
  • Create retirement security

*Please consult a tax advisor for further information regarding the deductibility of interest and charges.

Considerations for Renters

  • Renters do not earn equity in the home.
  • There is no tax incentive associated with renting.
  • Annual rent increases can outpace the economy.

Considerations for Owners

  • Financial investment, including securing the mortgage loan (with the down payment, home inspection and any other associated fees)
  • Property taxes
  • Maintaining the property and making home repairs
  • Potential lack of flexibility to move when the market is not favorable

buy vs rent scale

Review Your Finances

  • If choosing to purchase, the purchaser should review all costs associated with the initial investment and have savings or a savings plan in place to help cover unexpected costs.


  • If choosing to rent, the renter should make monthly investments in a savings plan. Investing money for the future can make a transition from renter to homeowner smoother.

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