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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.

2-minute read

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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