According to new research from Compare the Market, Canada has one of the largest price gaps between renting and owning a home in the world. Sitting in 10th spot, the average mortgage payment for a three-bedroom home in Canada is 32.6 per cent higher than the average rent for a comparable space. Our neighbours to the south currrently rank 22nd in terms of largest price gap between the cost to own vs. rent a home.

Luxembourg took top spot with a price gap of 51.1 per cent, reflecting the country’s high cost of living. Luxembourg also has the highest rent and house prices overall, with rent costing $3,017 (US) on average and monthly mortgage payments sitting at $4,558.

Latvia took second spot for countries with the greatest price gap between monthly rent and monthly mortgage payments at 42.5 per cent. While the cost to buy a home in Latvia is much cheaper than it is in Luxembourg, the gap is significant, with average monthly rent costing $582 (US) and mortgage payments estimated around $830 (US).

Slovakia came third with a 42.3 per cent price gap. House prices have been on the rise in Slovakia over the last few years where average rent is currently around $771 (US), and average monthly mortgage payments are estimated at just over $1,000.

On the opposite end of the scale, South Africa held a narrow 0.8 per cent price gap with rent prices averaging $865 (US) per month and mortgage payments coming in at $872 (US). In terms of which countries had a negative house price to rent ratio — meaning it’s cheaper to buy a home in that country than to rent one — Finland takes top position. That said, the gap is small with homeownership being just 2.1 per cent cheaper.

Italy was the only other country of the 39 listed where it is currently less expensive to own vs. rent a home.

For the full research and methodology, please click here.