The video is in Russian. This English companion guide summarizes the same examples and decision framework.
The mortgage payment is not the full cost of owning
Part of a mortgage payment reduces principal and builds equity. Another part — interest — is a financing cost. On top of that, owners may pay condo fees, property tax, insurance, maintenance and transaction costs. Those amounts should be considered when comparing ownership with renting or deciding whether to upgrade.
Illustrative condo example from the video
Total: about $25,400 per year in these three non-principal costs before insurance, repairs and transaction expenses. The point is not that buying is bad; it is that these costs should be visible in the decision.
Moving from a $700,000 condo to a $1,000,000 townhouse
The video also considers a move-up buyer. Suppose a condo is worth about $700,000 and, after selling, roughly $350,000 of equity is available toward a $1,000,000 townhouse. That leaves a new mortgage of about $650,000.
| Item | Illustrative amount | Why it matters |
|---|---|---|
| Townhouse purchase price | $1,000,000 | The new, more expensive property |
| Equity available after condo sale | $350,000 | Used toward the purchase |
| New mortgage | $650,000 | Amount that needs financing |
| Approx. mortgage payment | ~$3,450/month | Illustrative 4% rate, 25-year amortization |
| Target housing budget | ~$4,000/month | Leaves limited room for tax, utilities and maintenance |
This is why a move that looks affordable based only on the mortgage payment can become tight after property tax, utilities, maintenance and other ownership costs are added.
A falling market can change the upgrade math
A softer market is not automatically bad for someone selling and buying at the same time. If the next property is more expensive, the larger home can lose more dollars than the smaller home, narrowing the gap between them.
Example from the video: a condo that moves from $680,000 to $620,000 loses $60,000 in value. In a simple 10% decline example, a $700,000 condo loses $70,000 while a $1,000,000 townhouse loses $100,000. The price gap narrows from $300,000 to $270,000.
For a move-up buyer, that narrower gap may partially offset the lower sale price. For someone selling without buying another property, the same market decline has a different effect. Your objective matters.
Do not forget the cost of changing properties
Buying and selling also involves one-time costs. Depending on the property and municipality, these can include:
- Land Transfer Tax and, for Toronto properties, potentially the municipal land transfer tax;
- legal fees and title-related costs;
- mortgage setup, appraisal or lender-related costs where applicable;
- home inspection;
- selling commission and marketing-related expenses;
- moving expenses and closing adjustments.
When buying can still make sense
Buying may be the right choice when the home fits your budget, you expect to stay long enough to absorb transaction costs, you have a sufficient emergency reserve and the property solves a real lifestyle need. The decision should be based on your household's numbers rather than the idea that owning is always automatically better than renting.
Use the same framework across the western GTA
The exact prices and carrying costs vary by community, but the decision framework is the same in Oakville, Burlington, Milton, Mississauga, Etobicoke and Hamilton, with Toronto also served. Compare the property you have, the property you want and the full cost of getting from one to the other.
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