Should you rent or buy in Canada?
Rent vs Buy Calculator Canada
Should you rent or buy in Canada? Compare the total financial picture — mortgage costs, equity building, appreciation, CMHC insurance, and investment alternatives — over any time horizon.
Enter your details
Buying costs
Renting & comparison
Rate on invested down payment
Over 10 years, our analysis suggests:
⚖️ It's roughly a toss-up
Renting and investing the down payment produces $578,609 vs $622,709 home equity.
Break-even point: Year 1
Buy: net equity
$622,709
After 10 years
Rent: invested net worth
$578,609
Down payment invested
Break-even
Year 1
When buying overtakes renting
Net worth comparison over time
View year-by-year breakdown
| Year | Buy equity | Rent portfolio | Buy advantage |
|---|---|---|---|
| Year 1 | $179,254 | $175,618 | +$3,636 |
| Year 2 | $220,275 | $212,817 | +$7,458 |
| Year 3 | $263,145 | $251,682 | +$11,463 |
| Year 4 | $307,949 | $292,301 | +$15,648 |
| Year 5 | $354,777 | $334,770 | +$20,007 |
| Year 6 | $403,722 | $379,190 | +$24,533 |
| Year 7 | $454,883 | $425,666 | +$29,217 |
| Year 8 | $508,362 | $474,313 | +$34,049 |
| Year 9 | $564,266 | $525,251 | +$39,015 |
| Year 10 | $622,709 | $578,609 | +$44,100 |
How this calculator works
In Canada's high-priced markets (Toronto, Vancouver), the rent vs buy decision is particularly complex. High home prices often mean the break-even point is 10+ years away, while investors renting and putting their down payment into equities may build comparable wealth in the short-to-medium term.
This calculator accounts for the real total cost of homeownership in Canada: CMHC insurance (if applicable), land transfer taxes, legal fees, property taxes, maintenance, and mortgage payments. On the renting side, it models the growth of your invested down payment plus any monthly cash flow advantage.
Keep in mind that Canadian home prices have historically appreciated strongly, particularly in major cities. Appreciation assumptions significantly affect the outcome — adjust the appreciation rate based on your target market.
Worked example
- 1Buying: ~CA$3,394/month mortgage + ~CA$800/month costs = ~CA$4,194/month total
- 2Renting: CA$2,600/month rising 3%/year
- 3Down payment CA$140,000 invested at 7% grows to CA$275,000
- 4Property appreciates to ~CA$1,037K; equity ~CA$570K
- 5Net buying advantage after 10 years: ~CA$295,000
Frequently Asked Questions
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Disclaimer: Calculations are estimates for informational purposes only and do not constitute financial advice. Mortgage rules, taxes, and CMHC insurance requirements vary by province. Consult a licensed mortgage broker before making financial decisions.