How to Shift From Renting to Buying a Home

Many people start living independently by renting a house or apartment unit. After years of saving up enough money, they may want to move into a bigger home that they could call their own as they start to think about their future.

The decision to either rent or buy a house usually involves endless self-debates, unrealized expectations, and a bevy of frustrations. In choosing to upgrade residential conditions from renting to purchasing, you should know the benefits and drawbacks.

Remember that part of your decision to buy a home is to consider your budget. Do you have enough resources to pay for mortgage? This is just one of the major factors to consider when thinking about a home purchase.

young happy couple showing home key

The Difference between Renting and Buying a Home

t may be difficult for some people to grasp the reality of shifting from renting to buying, but knowing the differences between the two can already be very helpful.


The slight increase in the amount of payment – from monthly rent to mortgage – may mean having to find more income sources. However, the difference may be acceptable, especially with the advantages that a home purchase has over leased properties.

Purchase of home items

There is a need to buy furniture, decorations, and appliances when buying a home. In contrast, some rented units may already contain home items necessary for standard living.


With regards to maintenance, the landlord would be responsible for repairing leaks and other parts of the residential unit that needs to be replaced or repaired. When you have your own home, it will definitely involve additional expenses to conduct repairs and maintenance.

Home improvement

Renovation of the home would be an added concern, especially in terms of finances. It would either come straight out of your pocket or require a home improvement loan.

Sense of ownership and belongingness

Living in a house that you own gives you a sense of being part of the neighboring community.

The Jump from Renting to Buying a House

Buy or rent a house

Here are some points that you need to consider prior to buying your own home:


You may have taken notice of a specific property, but discover that there are other people who are interested to buy the home. In order to secure the property for you, the seller may ask for earnest money, which is about 1% to 3% of the total cost. It would serve as your “reservation fee” until such time that you are able to pay the agreed down payment.

It should be noted that a buyer who fails to pay the down payment on the agreed time essentially forfeits the earnest money. However, if the down payment is sent in time, the earnest money is deductible from the total cost.

Apart from having to shell out for down payment, you should also realize that there are other financial concerns that need to be addressed, such as monthly mortgage (principal and interest), property tax, and insurance.

It is a different story if you prefer to buy a condominium unit as you will be required to pay another monthly fee for the maintenance and repair of the building.

Monthly rent vs. monthly mortgage

Sometimes, depending on the location and the dimensions of the house that you intend to buy, the difference in cost between renting and paying mortgage may be slim. If the difference doesn’t seem to be that much, why not consider buying your own if that would mean comfort and security for you and your family?

Understanding the payment scheme

Some would require at least 20% down payment before moving in. You may ask for a lower down payment rate, but it should be noted that with such low down payment rate, mortgage insurance will be added on a monthly basis. In other words, paying a higher down payment rate would be more cost-effective, and this is the cost that you should be prepared for, prior to getting your own home.

Model house and calculator on construction planYour Credit Score

It is most likely that financial institutions would allow you to seek assistance from them to loan in order to purchase your dream house. However, your credit score should be in perfect status; otherwise, financial assistance may be impossible to get.

Having said that, you must learn to pay all of your bills on time, as this would be a primary concern of banks to be able to determine your capacity to pay for your loan.


Making the big jump from renting your living space to buying your own home is a milestone event in life that needs careful and utmost thought. I have been working in the real estate industry for years, and I’m confident that I can help you move into a house that’s under your ownership. Let’s talk!

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