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Rent vs Buy Calculator Canada
Generic rent vs buy calculators ignore Canada's unique costs — Land Transfer Tax ($10K–$40K+), CMHC insurance, and semi-annual mortgage compounding. Ours gets them all right. Enter your numbers and see the year buying outperforms renting and investing your down payment.
Educational calculators — always consult a licensed professional before making financial decisions.
The price of the home you are considering buying.
Less than 20% triggers CMHC mortgage insurance. This also represents capital you are not investing.
The cost to rent a comparable home or apartment in the same area.
Determines Land Transfer Tax — a significant one-time buying cost.
Buying usually becomes advantageous over renting after 5–10 years, depending on the market.
After 10 years, buying comes out ahead
$100,955
Buying becomes more advantageous after year 3
Monthly Cost Comparison (Year 1)
One-Time Buying Costs
Net Worth Over Time
| Year | Buyer NW | Renter NW | Home Value |
|---|---|---|---|
| Year 2 | $235,093 | $242,944 | $811,200 |
| Year 4 | $327,914 | $313,746 | $877,394 |
| Year 6 | $429,182 | $389,769 | $948,989 |
| Year 8 | $539,687 | $471,466 | $1,026,427 |
| Year 10 | $660,295 | $559,340 | $1,110,183 |
Assumptions: 5.49% mortgage rate, 25-yr amortization, 4% home appreciation, 3% rent increase, 7% investment return.
Your Saved Scenarios
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What you'll need
- ·Purchase price of the home you are considering
- ·Down payment amount
- ·Current monthly rent for a comparable home
- ·Province (for Land Transfer Tax)
- ·How many years you plan to compare (5, 10, 15, or 20 years)
What you'll get
- ✓Break-even year — When buying overtakes renting
- ✓Land Transfer Tax — Included in the true cost of buying
- ✓CMHC insurance — Factored in if your down payment is under 20%
- ✓Opportunity cost — What your down payment could earn if invested
How it works
Enter the purchase price and down payment
We calculate CMHC insurance, Land Transfer Tax, and mortgage payment automatically using Canadian semi-annual compounding.
Enter your current rent and province
We compare total ownership costs vs. renting, and track the renter investing their down payment at a 7% return.
See your break-even year
The year buying outperforms renting depends on appreciation, rent increases, and one-time buying costs. Some cities take 10+ years.
Rent vs Buy in Toronto: $800,000 Home, $160K Down, $3,500/mo Rent
| Year | Buyer Net Worth | Renter Net Worth | Winner |
|---|---|---|---|
| Year 1 | $118,000 | $280,000 | Renter |
| Year 5 | $275,000 | $348,000 | Renter |
| Year 8 | $418,000 | $405,000 | Buyer |
| Year 10 | $562,000 | $472,000 | Buyer |
| Year 15 | $968,000 | $633,000 | Buyer |
Assumes 4% annual appreciation, 3% rent increase, 7% investment return, 5.49% mortgage rate. Break-even at year 8.
Authoritative resources
Related Calculators
Canadian Mortgage Calculator
Calculate your exact mortgage payment for the buy side
Down Payment Savings Calculator
See how long it takes to save enough to buy
Mortgage Affordability Calculator
Determine what home price your income supports
Land Transfer Tax Calculator
Factor in land transfer tax as part of true cost of buying
CMHC Insurance Calculator
Check if CMHC premiums change the rent vs buy math
About this calculator
Is it better to rent or buy a home in Canada?+
In most Canadian cities, buying eventually builds more wealth than renting — but the break-even point varies widely. In Toronto and Vancouver with high purchase prices, it can take 8–15 years for buying to outperform renting and investing the equivalent down payment. In Calgary or Edmonton with more moderate prices, the break-even can be 4–7 years.
What hidden costs should I include when comparing rent vs buying in Canada?+
For buyers: Land Transfer Tax ($5,000–$40,000+), CMHC insurance premium (if <20% down), legal fees ($1,500–$3,000), property tax (~0.5–1.2% of value annually), home insurance, and maintenance (budget 1% of home value per year). For renters: only the monthly rent and tenant insurance.
How does the opportunity cost of the down payment affect rent vs buy?+
A renter can invest the down payment (e.g. $150,000) in a diversified portfolio. At a 7% historical return, this grows to ~$295,000 in 10 years. This investment portfolio is the renter's 'equity equivalent' — the comparison to the buyer's home equity. Our calculator tracks both paths to find when (or if) buying outperforms renting and investing.
How does Canadian mortgage compounding affect the rent vs buy comparison?+
Canadian mortgages compound semi-annually by law (not monthly like US mortgages). This means the effective monthly rate is slightly lower than dividing the annual rate by 12, which means slightly more of each payment goes to principal. Our calculator uses the correct Canadian formula: effective monthly rate = (1 + annual rate/200)^(1/6) − 1.
At what point does buying a home become better than renting in Canada?+
The break-even year depends on purchase price, down payment, rent, appreciation, and investment returns. Generally, in high-priced markets (Toronto, Vancouver) buying typically outperforms after 7–12 years. In mid-priced markets (Calgary, Ottawa) the break-even is often 4–8 years. If you plan to move in under 3–5 years, renting is usually better due to one-time buying costs.
Want to try different numbers? Head back up to the calculator.
Back to the calculator ↑Rent vs Buy Calculator Canada is built and maintained by the RealCostIQ editorial team. Cost ranges and rates are checked against published industry data and contractor quotes, and revised when the underlying figures move. Read our data methodology or more about who builds this. Every calculation runs in your browser — no account, and none of your inputs are stored.
Cost ranges and rates here are checked against contractor quotes and published industry data. If a number still looks off, email Support@RealCostIQ.com and we'll review and fix it.