Edmontonians pay just little more for monthly mortgages than rent

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To rent or to buy, that is the question. But what’s the answer?

If you’ve got an extra $250 and change at the end of every month in Edmonton, buying a home could be a better bet.

According to a recent analysis report by online housing platform Zoocasa, a mortgage in that city only costs — on average — an extra $253 per month.

An average monthly mortgage payment for Edmonton in January, according to Zoocasa, was $1,697. In comparison, the average asking price for rent that month was $1,444.

The company’s data also states that the average home price in Alberta’s capital is under $400,000.

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“It’s not surprising that Edmonton is the next most affordable market for mortgage payments,” the report reads.

It also says that the city is positioned as a more affordable alternative for those who may find themselves getting priced out of the Calgary market, where prices for a mortgage are significantly higher at an average of $2,540 per month.

Zoocasa analyzed 26 markets across Canada and compared monthly rental prices and monthly mortgage payments using average prices in December 2023 to find out if it is more affordable to rent or buy in each city.

Among the cities analyzed, Edmonton has the third-most affordable monthly rent, with only Saskatchewan and Regina coming in cheaper.

The gap between an average monthly mortgage payment and average asking rents in that city is also considerably more budget-friendly, with the $253 difference making it the third-most affordable within the range.

Rental price numbers were sourced from Rentals.ca and were calculated by finding the average price of one-bedroom and two-bedroom rentals. Monthly mortgage payments were calculated assuming a 20% down payment and a five-year fixed mortgage rate of 4.84% amortized over 25 years.

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