The current recession seems to have brought at least one benefit to Toronto's new condominium market. You can indeed now buy a suite in some projects and carry it – mortgage, taxes and maintenance included – for the same or slightly more than rent for comparable accommodation.

Frankly, when builders, agents and marketing people started making that claim, I thought it must be hyperbole; there had to be some catch they were not mentioning.

There is – in a way.

You can indeed pick up a one-, a one-plus den and even a two-bedroom suite in some projects and end up paying the same or slightly more than rent, but it all hinges on plunking down 20 per cent in cash and taking a mortgage for the balance. Granted, it is possible to buy with less of a down payment or even to borrow what you need.

Do that, however, and the monthly carrying costs start to go up and it will be cheaper to rent.

The amortization length of a mortgage plays a major role as well. For example, a $247,000 variable interest rate 25-year mortgage at 2.45 per cent – which indeed can be had today – comes in at about $1,100 a month, says Dan Flomen of TFN Realty Inc. Take that same mortgage and amortize it over 35 years and the monthly payments come down to about $875.

Here are examples of three projects where new suites can carry for about the same as you would likely pay in rent if you moved in today. In reality, buyers will be moving in some time between the end of 2010 and the middle of 2011, which raises a couple of wrinkles.

The first is that by then rents will certainly have risen across the Greater Toronto Area because a shortage of rental suites looms. The way the price of suites is going up today, the ones we are talking about here will be worth anywhere from 6 to 10 per cent more than what they sell for today.

The first project worth mentioning is Gramercy Park, which is being built by Malibu Investments Inc. just west of the Wilson subway station in Downsview. A 590 square foot one-bedroom unit sells for $216,990. Choose a 35-year fixed mortgage at 4.19 per cent and the monthly payment is $784.73. Taxes are $180.83 and maintenance $286.22, which gives a total monthly cost of $1,251.78.

Choose a five-year variable mortgage at 3.09 per cent and the monthly mortgage payment comes down to $676.82, which reduces total monthly carrying costs to $1,143.87.

Eve Lewis, president of MarketVision Realty Inc., which is the agent for the project, says market rents today for similar one-bedroom suites in the neighbourhood hover at about $1,150, which means that a fixed-rate mortgage puts you about $100 over rent and the variable rate mortgage about $6 under.

The gap is a bit wider for larger suites. An 806 square foot, two-bedroom unit selling for $290,990 comes in at $1,671.96 on a four year fixed mortgage, but $1,527.25 with the variable-rate mortgage. The market rent for two-bedroom suites in the area is about $1,500.

If you prefer to live in the west end, Debbie Cosic of In2ition Realty Inc., says take a look at Evolution. It has 133 suites and is being developed by Beaverbrook Developments at Dundas Street West and Michael Power Place.

The one-bedroom suites are sold out but you can still get a 736 square foot two-bedroom suite starting at $245,900. Arrange a 35-year mortgage at 3.15 per cent and you will pay $768.85 a month plus $204.25 in taxes and $379.29 in maintenance for a grand total of $1,352.39 a month.

That deal also includes a bonus – two years free maintenance.

“In that neighbourhood, you could rent it for at least $1,400 a month easily,” she says.

The third condo is Elle on Kariya Drive near Hurontario Street and Burnhamthorpe Road in Mississauga. Amacon Developments is the builder. Right now the project is selling phase three of the 328-suite tower.

Amacon is also offering a special incentive. Buy now and you get $10,000 cash back on closing plus $10,000 toward furnishings, says Mr. Flomen (TFN Reality is the agent for the project). He says after that cash-back offer, a 650 square foot one-bedroom plus den suite sells for as low as $235,000. A 25-year variable rate mortgage at 2.45 per cent would mean monthly payments of $840. Add on $180 in taxes and $290 in maintenance and the total monthly costs would be $1,310.

“Unfurnished suites are now renting for $1,250, so furnished ones would be at a premium above that,” he says.

An 830 square foot, fully furnished two-bedroom suite starts at $308,900 after the cash-back offer. Based on a 25-year mortgage at that same rate the total monthly costs including taxes and maintenance would be $1,660. On a 35-year mortgage they would be $1,445. Market rents start at $1,500 a month, Mr. Flomen says.