What costs does this calculator include?

For buying: mortgage payments, property taxes, home insurance, and ongoing maintenance (estimated at 1% of home value per year). For renting: monthly rent. Both sides account for the opportunity cost of the down payment invested at a market return rate.

What is the break-even point?

The break-even point is the number of years you need to own the home before buying becomes cheaper than renting over the same period. It accounts for transaction costs like land transfer tax and real estate commissions that make selling quickly expensive.

Does it include land transfer tax?

Yes — the calculator estimates land transfer tax based on your province and purchase price. Buyers in Ontario also pay a municipal land transfer tax in Toronto. First-time buyers may qualify for rebates in Ontario and B.C.

Canadian housing tool

Rent vs Buy Calculator

Compare the true cost of renting versus buying a home in Canada over time — including CMHC insurance, land transfer tax, and opportunity cost of your down payment.

All Tools

Buying

Home Price

Down Payment

Mortgage default insurance required

Mortgage Rate

Amortization

Property Tax

$/yr

~1% of home value/year is typical across Canada

Home Insurance

$/yr

Maintenance

% /yr

% of home value per year

Home Appreciation

% /yr

Province

Affects land transfer tax calculation

Renting

Monthly Rent

Annual Rent Increase

Tenant Insurance

$/yr

Investment Return

Expected Return on Investments

Return earned by investing the down payment and monthly savings if renting

Mortgage Default Insurance Required

With a 10% down payment, you must pay $13,950 in mortgage default insurance (CMHC or a private insurer), added to your mortgage balance.

Land Transfer Tax

In Ontario, you will owe approximately $6,475 in land transfer tax at closing.

Mortgage Stress Test

Canadian lenders require you to qualify at the higher of your contract rate + 2% or 5.25%. Your stress-test rate would be 7.50%.

Renting wins

Renting and investing builds more net worth over 25 years

Ending net worth: buying $1,046,889, renting $1,356,931.

Home Value (Yr 25)

$1,046,889

Buying Net Worth (Yr 25)

$1,046,889

Renting Net Worth (Yr 25)

$1,356,931

Break-even Year

N/A

Net Worth Over Time

Home equity plus invested savings (buying) versus invested savings (renting). Higher is better.

Year-by-Year Comparison

Year	Buy Monthly	Equity	Buyer Investments	Rent Monthly	Renter Investments	Buy Net Worth	Rent Net Worth
1	$3,790	$60,025	$0	$2,025	$82,561	$60,025	$82,561
5	$3,843	$165,852	$0	$2,276	$200,625	$165,852	$200,625
10	$3,917	$323,971	$0	$2,635	$385,773	$323,971	$385,773
15	$4,004	$517,301	$0	$3,050	$625,981	$517,301	$625,981
20	$4,104	$754,575	$0	$3,532	$940,698	$754,575	$940,698
25	$4,221	$1,046,889	$0	$4,091	$1,356,931	$1,046,889	$1,356,931

Both paths spend the same each month; the cheaper one invests the difference at the expected return. Net worth = home equity plus investments (buying) or investments (renting). Investment growth is treated as tax-free and selling costs are not deducted. Results are estimates for educational purposes only.

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