Rent vs buy calculator
Compare your net worth if you buy, with what you’d have if you rent and invest the money instead, year by year, on assumptions you control.
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How the comparison works
If you buy, your net worth is the home’s value, less selling costs and what you still owe. If you rent, your net worth is what you’ve invested: your down payment and buying costs, plus any year where renting costs less than owning.
If owning ever costs less than renting, the buyer invests the difference instead, so both sides are treated the same way.
What moves the answer most
- Time. Buying and selling costs are large, so short stays usually favour renting.
- Home price growth vs investment return. Small changes compound over many years.
- Rent. The closer rent is to the full cost of owning, the better buying looks.
What it leaves out
Gains on a principal residence are generally not taxed in Canada, while investment gains may be, depending on the account. Renewals at a different rate and the value of stability aren’t modelled either. Try several sets of assumptions rather than relying on one answer.
Frequently asked questions
Is buying always better in the long run?
No. It depends on your rent, how long you stay, home price growth and what you’d earn by investing. Change the assumptions to see how sensitive the answer is.
What should I use for ownership costs?
Add up property tax, maintenance, insurance and condo fees for a year and divide by the home’s price. Older homes and condos can run higher than the default.
Does this include CMHC insurance?
Yes. With under 20% down the premium is added to the mortgage, and any sales tax on it counts as cash needed to buy.
Guides on this topic
Closing Costs in Canada: What to Budget Beyond the Down Payment
Every closing cost when buying a home in Canada: land transfer tax, CMHC premium sales tax, legal fees, inspection, title insurance and adjustments, with examples by province.
First-Time Home Buyer Programs in Canada (2026 Checklist)
Every major first-time buyer benefit in Canada for 2026: the FHSA, RRSP Home Buyers' Plan, 30-year amortization and land transfer tax rebates.
Minimum Down Payment in Canada (2026 Rules)
The minimum down payment for any home price in Canada, with examples, the $1.5 million insured cap, and where your down payment can come from.
The Canadian Mortgage Stress Test Explained (2026)
How the OSFI stress test works in 2026, how it limits what you can borrow, when it applies at renewal, and practical ways to pass it.
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