--- title: "Mortgage or Rent: Why Equal Payments Don't Guarantee Profit and How to Avoid Debt Traps in 2026" description: "🏠 Mortgage or Rent: What is more profitable in 2026? Expert Taras Kozak warns: equality of mortgage and rent payments does not guarantee the profitability of buying. 🔹 Main mistake: lack of money for repairs and furniture. 🔹 30% Rule: do not spend more than a third of your income on housing. 🔹 Financial cushion: critically important for stability. Preferential mortgage is an exception, but commercial rates can lead to overpayment several times over. Before buying, answer 3 questions from the expert. #realestate #mortgage #finance #ukraine2026" date: 2026-08-13T04:02:00.000Z lang: en url: https://xab.info/en/posts/mortgage-or-rent-expert-advice-2026 tags: [real-estate, mortgage, economy, ukraine, finance] publisher: "XAB.info" --- # Mortgage or Rent: Why Equal Payments Don't Guarantee Profit and How to Avoid Debt Traps in 2026 ![A woman holds a house-shaped key, symbolizing the choice between a mortgage and renting in 2026.](https://xab.info/media/2026/08/13/ipoteka-ili-arenda-sovety-eksperta-2026/ipoteka-ili-arenda-sovety-eksperta-2026-1.webp) ## 🎯 Key Points - Equality of mortgage and rent payments does not mean buying is profitable due to hidden costs. - It is recommended to allocate no more than 30% of monthly income to housing expenses. - Preferential mortgages make buying profitable, while commercial rates can lead to huge overpayments. - Before buying, you must have funds for repairs and furniture, as well as a financial safety cushion. In the context of economic instability in 2026, the choice between renting and buying housing remains one of the most pressing issues for citizens of Ukraine. Many potential buyers, comparing monthly expenses, conclude that if the mortgage payment is comparable to the cost of rent, then buying is undoubtedly a profitable investment. However, experts warn: such mathematics can be erroneous and lead to serious financial problems. ### Hidden Costs and the "Equal Payment" Trap Taras Kozak, founder and president of the investment group "UNIVER", debunked the popular myth that parity between rent and mortgage prices makes buying automatically profitable in an interview with RBC-Ukraine. The expert emphasizes that when calculating financial feasibility, one must consider not only the monthly installment to the bank but also the totality of associated expenses. Buying real estate is not just a monthly payment; it is a long-term investment requiring significant initial capital and constant maintenance. A key factor often ignored is the need to furnish the property. "At a minimum, so that you can furnish the apartment as you like, that is, so that through furniture and repairs you do not get into big loans," explains Taras Kozak. If all savings were spent on buying the apartment and there are no funds left for repairs and furniture, the owner is forced to take out additional loans, which multiplies the financial burden and the risk of default. ### The 30% Rule and the Importance of a Financial Cushion To maintain financial stability, experts recommend adhering to the rule that housing expenses (whether rent or mortgage) should not exceed 30% of monthly income. Exceeding this threshold makes the budget extremely vulnerable to any external shocks: job loss, illness, or rising prices for essential goods. Special attention should be paid to forming a financial safety net. Unlike a tenant, who can move to different housing if their financial situation worsens, a mortgage owner is tied to the property. Kozak advises asking yourself tough questions before buying: Am I ready to live in this apartment for about 10 years? Will my income be enough to pay off the loan and maintain the housing in case of a salary reduction? If the answers raise doubts, the purchase may become not an asset, but a heavy burden. ### Preferential Mortgage vs. Commercial Rates The situation changes radically if we are talking about preferential lending programs. In 2026, Ukraine has state programs that allow certain categories of citizens to obtain mortgages on favorable terms. In this case, buying can indeed be profitable, even if the monthly payment is high, as the total interest overpayment will be minimal. "If you are eligible for such a preferential mortgage, then, of course, there is a chance. If you are working, if you have a stable job, that is a plus, especially if you already want to have your own apartment and do not plan to move," notes Kozak. However, at commercial rates, which remain high in current economic realities, the total amount paid to the bank over the entire loan period can exceed the market value of the apartment several times over. In such cases, renting often turns out to be a more rational choice in terms of capital preservation. ### Pre-Purchase Checklist: Three Questions from the Expert Before signing a loan agreement, Taras Kozak recommends conducting a stress test of your finances by answering three main questions: 1. Is the person ready to live in this apartment for at least 10 years, considering that a mortgage is a long-term deal? 2. What additional expenses will arise after purchase (taxes, repairs, furniture) and are there funds for them? 3. Will future income be enough to pay the mortgage and furnish the housing without the need to urgently sell the apartment? Only a comprehensive analysis of these factors will allow for a balanced decision and avoid the debt trap. ## ❓ FAQ ### Q: Is a mortgage always more profitable than renting if payments are equal? **A:** No. With equal payments, one must consider additional expenses for repairs, furniture, taxes, and maintenance, which fall on the owner. ### Q: What percentage of income can be spent on housing? **A:** Experts recommend not exceeding 30% of monthly income on rent or mortgage payments. ### Q: Is it worth taking a mortgage without money for repairs? **A:** No, this creates an additional financial burden. It is better to have funds for furnishing to avoid taking out new loans.