About one out of every five home loans at three big Canadian banks are now negatively amortizing, which happens when years get added to the payment term of the original loan because the monthly payments are no longer enough to cover anything but the interest.
My mortgage payment plus property taxes is less than the going rental rate for an equivalent 3br suite, and I bought last year.
The thing that convinced me is that my mortgage payment stays the same every year while everything else goes up with inflation, including my salary.
We’ll see where we’re at when it’s time to renew in 4 years but the way things are going even if it costs me an extra $1000/month I’m still probably coming out ahead.
An important caveat is your mortgage payment gets frozen for only a fixed term, then you have to renegotiate, which means it’s only fixed for now.
Rent can go up 10-15% in the same amount of time as that fixed mortgage. If there’s no rent control, it can go up much more than that.
Repair cost can be high too. Roof,drains, etc.