This paper explores Canada’s culture of home ownership, and offers financial analysis to support renting a place to live as a viable alternative for building long-term wealth. Choosing where we live and how we pay for housing is an extremely important decision; it is often influenced by the perception that renting is a waste of money. Renting has benefits over owning which must be considered. The people promoting home ownership as the only smart decision may not be doing so based on logic.

In a side-by-side comparison of a renter and an owner, using a reasonable set of assumptions, we see that a comparable financial outcome can be achieved. All things considered, renting your housing is not a waste of money, and it can even result in a greater accumulation of wealth over the long-term compared to owning.

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