Rent or buy: which leaves me further ahead?
This is not a prediction. Change the assumptions and see what would have to happen for either choice to win.
Amounts are Canadian dollars. Change any number to update your answer.
Required below 20% down with 30 years. Check first-time buyer or new-build eligibility.
How to read this comparison
Both choices start with the same money and monthly budget. Whoever spends less invests the difference.
Mortgage insurance is included when required. Add any upfront insurance tax to buying costs.
Rent and mortgage rates stay constant. Utilities, condo fees and home insurance are excluded.
Investment returns are after fees and taxes. Home-sale tax and mortgage-breaking penalties are excluded.
Why this tool is different
Rent-versus-buy results depend heavily on assumptions. Instead of declaring one choice better, this tool lets you test how long you stay, future home prices, maintenance, selling costs, and investment returns.
Example: a five-year comparison
Suppose a $700,000 home has $140,000 down, a 4.49% mortgage rate and a $2,800 comparable monthly rent. Assume 3% yearly home growth, 1% yearly maintenance, $4,500 yearly property tax, $15,000 buying costs, 5% selling costs and 5% investment growth.
After five years, the model shows about $279,339 for the buyer after selling and $282,907 for the renter's invested savings. Renting leads by roughly $3,569 in this scenario. Small changes to growth, costs or time can reverse it; these figures are not forecasts.