🏠 MORTGAGE & REAL ESTATE · UPDATED 2026

Rent vs. Buy Calculator

Canada's most honest rent vs. buy comparison — including land transfer tax, CMHC insurance, maintenance, opportunity cost of your down payment, and true net worth impact over time.

⚖️

Buying isn't always better — and neither is renting. It depends on your numbers.

The true cost of buying includes mortgage interest, property tax, maintenance, insurance, and closing costs. The true benefit of renting includes investing your down payment and the monthly cost difference. This calculator runs the real math on both sides.

📋 Your Details

🏠 If You Buy
$
$
Affects CMHC insurance requirement
%
$
Typically 0.5–1.5% of home value
$
%
% of home value/yr · Experts suggest 1–2%
$
Auto-calculated by province
$
Legal fees, inspection, title insurance
🏢 If You Rent
$
Your current or comparable rent
%
ON guideline 2026: 2.5% · BC: 3%
$
📈 Shared Assumptions
%
Canadian avg ~4–5%/yr historically
%
Return if down payment is invested instead
%
Based on your numbers, over your chosen period
Buying Is Better
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Buy Net Worth
$0
Rent Net Worth
$0
Net Worth Advantage
$0
Break-Even
— yrs
🏠 BUYING

Monthly Cost of Owning

$0
Mortgage Payment$0
Property Tax$0
Home Insurance$0
Maintenance$0
Total Monthly (Yr 1)$0
🏢 RENTING

Monthly Cost of Renting

$0
Monthly Rent$0
Tenant Insurance$0
Investment of Savings$0
Total Monthly (Yr 1)$0
Home Value at End
$0
After appreciation
Equity Built
$0
Home value minus mortgage balance
Total Buy Cost
$0
All payments over period
Down Payment Invested
$0
If renting and investing DP
Total Rent Cost
$0
All payments over period
CMHC Insurance
$0
Added to mortgage if <20% down
📅

Break-Even Point

Buying becomes financially advantageous over renting at this point.

📊 Net Worth Comparison Over Time

Blue = buying net worth (equity + savings). Green = renting net worth (portfolio growth). The lines crossing is your break-even point.

Buy — Net Worth
Rent — Net Worth

🏆 Net Worth at End of Period

📋 True Cost Breakdown

💡 Rent vs. Buy Tips for Canadians

⏱️ The 5-Year Rule

In most Canadian cities, buying only beats renting if you stay for at least 5 years. Closing costs, land transfer tax, and realtor commissions (~5% to sell) mean short stays almost always favour renting.

📈 Opportunity Cost Is Real

A $130,000 down payment invested at 7% for 10 years grows to ~$256,000. This "lost" investment return is a real cost of buying that most people overlook — this calculator accounts for it.

🔧 Don't Forget Maintenance

Experts suggest budgeting 1–2% of your home's value per year for maintenance. On a $650,000 home that's $6,500–$13,000 annually — a major cost renters don't pay.

🧠 Non-Financial Factors Matter

Stability, renovating freely, pets, school districts, and pride of ownership are real. Buying may be worth it even if renting is cheaper — your quality of life is part of the equation too.