US homes: Rent or buy?
The decision whether to rent or buy a home in the US can influence upfront costs, your ability to customize the home, and more.
Key differences between renting and buying in the US
| Renting a home | Buying a home | |
|---|---|---|
| What upfront costs will I need to pay? | Renting a home may require a deposit, often equal to two months’ rent. | Buying a home will require a down payment1, plus closing costs. |
| What monthly expenses will I need to pay? | Your expenses include rent payments and utilities. | Your expenses include mortgage payments (principal and interest), taxes, insurance, fees2, and utilities. |
| Who owns the property? | Your landlord owns the property. Renting does not add to your wealth. | You own the property. Payments you make can help build equity. |
| Can I customize the home? | You must ask your landlord for permission to make changes. | You may customize as you like.3 |
| Who is responsible for maintenance? | Your landlord is typically responsible for repairs. | You are responsible for repairs. |
| What is my commitment if I leave? | When you leave at the end of your lease, you are not responsible for finding a new tenant. | If you no longer wish to own the home, you are responsible for finding a new owner. |
| What are some factors that may affect my housing expenses over time? | Your landlord may increase your monthly rent. | Once your mortgage is paid in full, you will no longer need to make mortgage payments. You may experience increases in taxes, insurance, and other fees over time. |
What's next?
We can help you consider your finances and options. Speak with a US mortgage representative for help deciding whether to rent or buy.
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