Calculator · Rent vs Buy
Rent vs. buy — which builds more wealth?
We project your net worth after a few years either way: buying (home equity, net of selling costs) vs. renting (your down payment + monthly savings invested). Honest math, Canadian-correct.
Live math · no calculate button| Canadian semi-annual compounding · OSFI B-20| Ontario + Toronto LTT-aware| Same engine our advisors use
Your inputs
$700k
$140k
5.04%
$3k
7 yrs
Renting comes out ahead by
$19,545
After 7 years (net worth difference)
After 7 years
Buy — net worth (home equity)$360,950
Rent — net worth (invested)$380,495
Owning cost / month$4,436
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Methodology · Canadian-correct
Assumptions: 3% home appreciation, 5% investment return, 1% property tax, 1% maintenance, 4% selling cost; renter invests the down payment + any monthly savings. Simplified (no rent inflation / tax on gains). Directional, not advice.
Mortgage glossary— terms that matter for this calculator
Is it better to rent or buy in Canada?
It depends on how long you'll stay, price-to-rent in your market, and what you'd earn investing instead. Buying usually wins past ~5 years because equity compounds and selling costs amortize; renting can win short-term or in very expensive markets.
What assumptions does this use?
Home appreciation ~3%/yr, investment return ~5%/yr, property tax ~1%/yr, maintenance ~1%/yr, and ~4% selling costs. The renter is assumed to invest both the down payment and any monthly savings vs. owning.
Why does the break-even take a few years?
Buying has big upfront + exit costs (land transfer tax, legal, then realtor on sale). It takes a few years of equity build + appreciation to clear those, which is why short stays often favour renting.
Does buying always win long-term?
Not always — in markets where rent is very cheap relative to price, disciplined investing of the difference can rival buying. But for most Canadians staying 5+ years, ownership builds more net worth.
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