If you are deciding whether to get any sort of loan then it is wise to compare the advantages and disadvantages. Often it can seem like there are a lot more disadvantages because of the risk and cost of a loan. However, there are often advantages as well and these can be quite high in number for a mortgage or real-estate loan.

Reduced cost of rent

Sometimes, when we take on a mortgage, we find that the monthly mortgage repayments are actually less than we were paying out in rent. This means that we might be able to save money. Of course, that will depend on what is included in the rent as sometimes electricity and water is included and you will have to pay for these on top of your mortgage repayments. You will also have additional insurance to pay which might mean that the mortgage is not cheaper.

However, even if it is a little more expensive when you are paying it, once you have repaid the mortgage it is likely that you will pay a lot less as you will only be having to pay for insurance and utilities and not for the loan repayments as well.

Before you decide whether to take out the mortgage it is worth calculating how much you might potentially save as this could help you decide whether the mortgage is a good idea or not.


When you are renting, there is always a risk that the landlord may decide that they no longer want you at the property and they want to move you on. They may want to sell the property or they may want to live there themselves or if you have missed a few rent payments they may want to evict you for that reason. If you own your own property then you will be able to stay there as long as you wish as long as you are able to keep up with the mortgage repayments. Therefore, you and your family will have a secure place to stay with no worries about whether you landlord may decide to give you notice.

Freedom to renovate home

When you rent a property you will not have much freedom with regards to making changes in it. You will have to keep it looking very similar to how it did when you moved in. However, when you own a property you will be able to make changes to it. Tis can be anything from simple things such as updating the bathrooms and kitchen to extending the whole place. It can be great to be able to put your own stamp on a place or to be able to make changes so that it can always suit your needs. It means that if you extend the size of your family, but do not have enough space, you will not have to necessarily move. You may be able to convert a garage or attic to a bedroom or build an extension so that there will be room for you all. If you really love the area where you live and cannot afford a bigger property, this can be a cheaper option that can allow you to have to space that you need without moving.

Future investment

Although owning the house you live in is not quite an investment, it does mean that you will have money tied up in something which should be gaining in value. Property prices tend to rise over time and so the money that you have used to buy the property will also increase in value. As property values tend to increase faster than the rate of inflation or than interest rates it can mean that the money will be worth more put into a property than invested elsewhere. However, because you will always want somewhere to live, the money is not accessible unless you sell your property and move back into rental or if you release it using an equity loan. However, it is often used to pass on to children, which means that they have some inheritance either in the form of a home that they can live in or a property that they can sell so that they can have some extra money. This means that you are really investing for your children’s future rather than your own, but it can still be a nice feeling knowing that you will have something to pass on to them.

So, as you can see, there are many great reasons for buying a home. To do this many people will need to get a mortgage and there are obviously disadvantages in borrowing money like this. However, with a house purchase the advantages will often outweigh the disadvantages. You will need to normally save up for a deposit, which can be a significant chunk of money and so it may take some time to do this. You will also need to be confident that you are able to cover the regular repayments for the whole term of the loan which will be several or more decades. This can be a big commitment but it can be well worth it.

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