How to know when it’s the right time to stop renting and buy

Susie Braskett
Aug 15
2 min read

Deciding whether to keep renting or take the leap into homeownership is a big financial and lifestyle choice. While renting offers flexibility, buying builds equity and stability. So how do you know when it’s the right time to make the move?

1. Your Finances Are Stable

Buying a home comes with upfront costs and long-term commitments. You’re likely ready if:

You have a steady job and reliable income.
You’ve saved enough for a down payment and closing costs.
You have an emergency fund that covers at least 3–6 months of expenses.

2. Your Credit Is in Good Shape

A stronger credit score means better loan terms and lower interest rates. Before buying, check that:

Your score is at least 620 (higher is better).
You’ve paid down high-interest debt.
You can qualify for a mortgage at a competitive rate.

3. Renting Costs More Than Owning

Compare your current rent with what a monthly mortgage (plus taxes, insurance, and HOA fees) would be. In many areas, homeownership is more cost-effective long term, especially when factoring in tax deductions and equity growth.

4. You Plan to Stay Put

Buying makes sense if you’ll stay in the home at least 5–7 years. That timeframe allows you to build equity and offset the costs of buying and selling.

5. You Want to Build Equity

Every rent payment goes to your landlord. Every mortgage payment builds your equity — an asset that grows as you pay down your loan and as your home appreciates in value.

6. You’re Ready for Responsibility

Owning a home comes with maintenance and repairs. If you’re prepared to handle upkeep — or budget for professionals — you’re ready for the responsibilities of homeownership.