Owning your own apartment or house has traditionally been seen as a symbol of financial success. However, in 2026, when real estate prices in Quebec have reached record levels, many familiar ideas about buying a home no longer match reality.
According to financial advisor Nicolas Karaoglanian, the decision to buy real estate should be made not under the influence of stereotypes, but after a careful analysis of one’s own financial capabilities.
Today, the median price of a detached house in Montreal is about $780,000, and in the Quebec City region — $486,500. Against this backdrop, the expert suggests revisiting four of the most common myths.
Myth #1. Buying a home is the best way to get rich
Many are convinced that real estate is always the most profitable investment. However, that is far from true.
Karaoglanian reminds us that homeowners often forget to factor in related costs:
- property tax;
- insurance;
- maintenance;
- major repairs;
- utility costs.
The expert suggests using the so-called “5% rule”. The home’s price is multiplied by 5% and then divided by 12 months. The resulting figure shows the approximate monthly cost of owning the property.
For example, for a home priced at $450,000, that’s about $1,875 per month.
If similar housing can be rented for less, renting may turn out to be the better financial decision—especially if the money saved is regularly invested in retirement savings (RRSP), a tax-free account (TFSA), or other investment instruments.
In the specialist’s view, at today’s prices, a disciplined renter over 20–25 years can вполне accumulate capital comparable to—or even exceeding—that of a homeowner.
Myth #2. Everyone must strive to become an owner
The expert believes that buying real estate is far from a universal goal.
For people who:
- move frequently;
- value mobility;
- regularly invest spare funds,
renting may be a more rational choice.
At the same time, he acknowledges that a mortgage has the effect of “forced savings”: part of the monthly payment automatically goes toward paying down the principal. For people who find it difficult to set money aside on their own, this can indeed be an advantage.
Myth #3. If the bank approved your mortgage, you can afford it
Getting a mortgage pre-approval does not mean the purchase will be comfortable for the family budget.
The bank assesses only the client’s ability to service the debt, but does not take into account their usual lifestyle.
The expert advises asking yourself a few questions:
- will there be money left for travel;
- will you be able to keep going to restaurants;
- will there be enough funds for hobbies and leisure;
- will you have to give up your usual standard of living.
In other words, the financial ability to buy a home and financial comfort are two different things.
Myth #4. The main expense is the mortgage payment
Many future homeowners underestimate additional costs.
In addition to the mortgage, you need to consider:
- the property transfer tax (the so-called “welcome tax”);
- home insurance;
- moving expenses;
- buying furniture;
- home repairs and upgrades.
In addition, specialists recommend setting aside 1–1.5% of the property’s value each year for maintenance and major repairs.
For a home priced at $450,000, that amounts to $4,500 to $6,750 per year.
Even if major expenses do not arise every year, over time almost every owner has to replace the roof, windows, heating equipment, or carry out other costly work.
Not only numbers, but also life circumstances
Nicolas Karaoglanian advises that before buying, you should consider not only the state of your bank account, but also your life situation.
If a person:
- is not sure about the stability of the relationship;
- works on a temporary contract;
- plans to move in the coming years,
renting may be the more sensible decision, even if income allows you to take out a mortgage.
In the expert’s opinion, today buying real estate is not a mandatory path to financial well-being, but only one of the possible tools. And before signing a mortgage agreement, it is worth assessing not only the price of the home, but also how well it fits your long-term life plans.
