There's no place like home – but should you rent or own?

Whether you're currently renting or you own your home, if you're dreaming of someplace new, this may be a good time to consider whether or not to make your move. Let’s weigh the pros and cons.


Tax benefits

  1. According to the IRS, here are the costs that you may be able to deduct on your taxes:

    1. Real estate taxes actually paid to the taxing authority
    2. Interest that qualifies as home mortgage interest
    3. Mortgage insurance premiums
  2. Taxpayers who make some energy-efficient improvements to their home may qualify for the following tax credits:

    1. Residential Energy Property Credit
    2. Residential Energy Efficiency Property Credit

Remember, you should consult your tax advisor regarding your individual tax situation when considering homeownership. For more information on credits and deductions, visit*


  1. As a homeowner, you create equity in your home when the value of the home increases and/or when you reduce your mortgage balance through consistent loan payments.

  2. You can borrow against your equity to make home improvements, consolidate debt, and pay for college tuition or other expenses. This is a great option for homeowners who have adequate equity available in their home. However, be aware that market changes will affect your Loan To Value (LTV) ratio and you may end up owing more than what your home is worth if you decide to sell.

  3. If you sell your home, you can receive cash back on your sale through the equity available on your property. If the value of your home has significantly increased since you made the purchase, this could result in a sizable profit. The sale of a home may constitute taxable income to you. Please consult your tax advisor


  1. As a homeowner, you have the freedom to make changes to your property. You can remodel your kitchen, bathroom, or paint any room any color you want. Note: Condo owners may need to check with their property management company or co-op board prior to making changes. If your home is located within a community with a Homeowners Association there may be rules that you need to follow as it relates to improvements for the outside of your home.  While this protects the overall aesthetic of the community, you may find some of the rules restrictive.  Make sure that you review HOA rules prior to buying your home.

  2. As a renter, you must have landlord approval to make any changes


  1. While you do need to give out your personal and financial information to your lender, you no longer have to worry about giving this information to a landlord. You can be confident that the privacy procedures of your lender will always protect your information


  1. If you are a current homeowner and have made consistent payments on your mortgage, you may qualify for refinancing

  2. Refinancing may be a good idea if you would like a better interest rate, want to switch to a different type of mortgage, or adjust the length of your existing mortgage


Long-term commitment

  1. If you get a job transfer or find a great opportunity in an area far from your home, owning a home will make it more difficult to move or relocate

  2. Owning a home will limit your ability to move if you decide you want to live in a new neighborhood or get a bigger place

Financial risk

  1. Loan fees, closing costs and down payments can be very expensive and you may have to come up with money up front unless you participate in an assistance program when buying a home

  2. If your home depreciates in value and you are in a position that requires you to move unexpectedly, you will most likely lose money on the sale

  3. Unplanned expenses or a sudden job loss may cause you to accrue large debts that do not fit into your budget. You can’t walk away from a mortgage as easily as a rental agreement

Home repairs and maintenance

  1. As a homeowner, you either have to hire someone or do it yourself. Not only will this take a lot of work on your part, it may also cost a lot of money

  2. When you rent an apartment or house and something goes wrong, you can call the landlord to get it fixed. A landlord is also responsible for landscaping and general upkeep of their property

How to stay calm when buying a home

Buying a home is an exciting life and financial milestone. It can also come with a lot of questions and big decisions. Explore what you need to know before you begin the mortgage process.

  1. Review your credit history and score
    Review and understand your credit score – a high score can mean more loan options and lower rates.

  2. Know how much you can afford
    You'll also want to know how much you can afford , consider your current expenses plus the new ones that come with home ownership.

  3. Confirm how much you can afford and get prequalified
    To get prequalified, you'll need to provide your income, debt and prospective property information and authorize a credit pull using your social security number. If you want to get prequalified, call 1-866-325-4516 to speak with a TD Loan Officer or stop by a TD Bank  near you

  4. Research financing options and homebuyer programs
    Research and leverage local programs* and federal loans available to homebuyers. (Note: local and federal resources referenced here are not the only resources available)

  1. Get professional help
    A buyer's agent will help guide you through the search and bidding process. A real estate broker or agent can assist you with your search and may have access to exclusive listings

  2. Create your wish list
    Know what your new home must have to make you happy and what you're comfortable sacrificing

  3. Enjoy the journey
    Each step is leading you home

Questions about money management?

Our interactive guides can show you how to get smart with your money – in less than 10 minutes.

This article is for general informational purposes only. It is not intended to provide specific financial, investment, tax, legal, accounting, or other advice and should not be acted or relied upon without the advice of a professional advisor. A professional advisor will recommend action based on your personal circumstances and the most recent information available.

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