Buying a House vs Renting at Fifth Avenue

	House (5% Down) 1,500 sq. ft. Bi-level 3 Bedrooms (1 up/2 down)	Fifth Avenue Townhome 1,500 sq. ft. 3 Bedrooms $1,500/month plus utilities	House (10% Down) 1,500 sq. ft. Bi-level 3 Bedrooms (1 up/2 down)	Fifth Avenue Townhome 1,500 sq. ft. 3 Bedrooms $1,500/month plus utilities
Purchase Price	200,000.00	-	200,000.00	-
Down Payment	10,000.00	-	20,000.00	-
Legal Fees and Closing Costs1	3,725.00	-	3,725.00	-
Mortgage Default Insurance (CMHC)	5,225.00	-	3,600.00	-
Invested by Renter @ 3.99% (5 yr. GIC)		13,725.00		23,725.00
Mortgage @ 6.85%	195,225.00	-	183,600.00	-
Mortgage Payment2	1,349.36	-	1,269.01	-
Rent	-	1,500.00	-	1,500.00
Property Tax3	307.52	-	307.52	-
Water Heater Rental Charges	25.00	n/a	25.00	n/a
Invested by Renter each month @ 2.5%	-	181.88	-	101.53
Total Monthly Payments4	1,681.88	1,681.88	1,601.53	1,601.53
Total Payments after 5 years5	114,638.04	114,638.04	119,817.04	119,817.04
House sold for 105% of purchase price	210,000.00	-	210,000.00	-
Less 6% commission and legal fees	14,100.00	-	14,100.00	-
Less Mortgage Owing	177,394.68	-	166,831.41	-
Cash	18,505.32	28,304.97	29,068.59	35,401.60
House sold for 110% of purchase price	220,000.00	-	220,000.00	-
Less 6% commission and legal fees	14,700.00	-	14,700.00	-
Less Mortgage Owing	177,394.68	-	166,831.41	-
Cash	27,905.32	28,304.97	38,468.59	35,401.60
1. Closing costs include appraisal fees, land transfer tax and title insurance but do not include GST on a brand new house.
2. Does not include any premium for life insurance on mortgage.
3. Assumes assessment equal to purchase price, a tax rate (municipal + education) of 1.845144% (Thunder Bay 2006) and NO increase in taxes during the first five years.
4. Does not include property insurance or utility costs which would be significantly higher for the house than the townhome.
5. Does not include purchase and/or maintenance of appliances, or any maintenance or repair costs for the dwelling.

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