Rent vs. buy calculator Canada

Compare equal starting money and equal monthly budgets

The renter invests the down payment and upfront buying costs that the buyer spends. Each month, whichever option costs less invests the difference. At the end of each year, the buying total is the home’s assumed sale value, minus selling costs and the remaining mortgage, plus any invested monthly savings. The renting total is the investment account.

This makes the opportunity cost of a down payment visible. Comparing rent only with the mortgage payment misses property taxes, maintenance, insurance, condo fees, purchase costs and selling costs.

Make it local

Use an actual property-tax estimate, a realistic rent for a comparable home, and location-specific closing costs from our Canadian mortgage calculator. Enter the complete upfront-cost amount here. There is no single Canadian land-transfer-tax rate.

Test a range, not a prediction

The growth and investment rates are assumptions you can change. Investment return should be after fees and applicable tax. The model holds the mortgage rate constant and uses monthly Canadian semi-annual-compounded payments. It includes standard default insurance below 20% down, but does not calculate qualification or insure eligibility. Use 25 years or less for an insured scenario here.

Utilities common to both homes are excluded. Enter any difference in the cost inputs. Tax on a home sale, investment withdrawal timing, investment risk, special assessments and mortgage penalties are outside the model. Lifestyle, flexibility and housing security also matter.

Common questions