Pros

Cons

• Not paying interest
• No closing costs, down payment etc.
• Landlord is responsible for overall maintenance, not you
• Good for short-term living arrangements

• Not building equity
• Paying off someone else’s mortgage
• Rent costs are projected to continue rising
• Have to wait for landlord to fix problems
• Potential for payments to increase with every renewed lease
• Still paying renter’s insurance
• Can’t personalize – paint, renovate, etc.
• Loss of security deposit for major damage or potentially for breaking lease early
• Rent payments not tax deductible

Pros

Cons

• Boosting net worth with every mortgage payment
• Increases home equity and financial protection
• Diversifies investment portfolio
• Mortgage interest is tax-deductible
• Freedom to renovate, customize, paint etc.
• Can increase your home’s value with renovations
• Consistent, predictable payments every year (with fixed-rate mortgages)
• Home affordability increasing as prices dip
• There are several programs to help lower upfront costs like down payments and closing costs
• Once you “finish your lease” aka sell, you’ll get money back (unlike renting)
• You can rent out your house to help build equity (depending on your mortgage program)

• Longer-term responsibility
• Higher upfront costs
• Responsible for maintenance costs