Last updated: 2026 assumptions reviewed. Assumptions & sources
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Rent vs Buy Calculator

Compare the true cost of renting versus buying a home in Canada, with opportunity cost, provincial land transfer tax, CMHC insurance, and Canadian mortgage math built in.

Two ways to house yourself
Rent and invest the differencevsBuy and build equity
Land transfer tax, CMHC insurance, and the return you gave up on the down payment are all in the math. Most comparisons leave the last one out.

Your Situation

A one-tap starting point. Adjust anything below.
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If You Rent

$2,200
$
$
%
%

If You Buy

$550,000
$
%
%
years
$
$
%
%
%
%
$ $0
$ $0

Results

Over 10 years
-
Breakeven
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Equivalent Rent
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Buying wins above this rent
Net cost over 30 years: lower line is the better financial outcome

RENTING

Total Rent Paid -
Renter's Insurance -
Investment Growth (what the invested money earned) -
Net Cost of Renting -

BUYING

Down Payment -
Land Transfer Tax -
Other Closing Costs -
Mortgage Payments -
Property Tax -
Home Insurance -
Maintenance -
Total Cash Spent -

EQUITY & NET POSITION

Home Value (end of period) -
Remaining Mortgage -
Selling Costs -
Net Equity After Sale -
Net Cost of Buying (cash spent − equity) -

MONTHLY COMPARISON

Monthly Mortgage Payment -
Monthly Rent (starting) -
Monthly Rent (end of period) -

Tools Dan uses

Save the down payment

If buying wins on paper, the down payment is the next hurdle. Wealthsimple opens an FHSA in minutes, no minimum, and the growth stays tax-free.

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How This Calculator Works

This calculator compares the full cost of renting and buying a home in Canada over time, including several costs that quick comparisons leave out.

Opportunity Cost (The Big One)

If you rent instead of buying, you keep your down payment and closing costs. That money can be invested. Each month, if owning would cost more than renting, the difference also gets invested. This calculator grows that money at the return you enter and subtracts the growth from your renting costs. Many calculators leave it out, and it is often the single largest factor in the decision.

Canadian Mortgage Math

Fixed-rate Canadian mortgages compound semi-annually by law. This calculator converts your rate to an effective monthly rate on that basis, which gives a slightly lower payment than a calculator built for American loans would show.

Provincial Land Transfer Tax

Land transfer tax varies wildly by province. In Ontario, you can pay over $6,000 on a $550,000 home. In Toronto, double that. Alberta charges a land title fee of $50 plus $5 for every $5,000 of value, and Saskatchewan a 0.4% title fee. This calculator applies your province's rates and the first-time buyer rebates in Ontario, Toronto and British Columbia. Nova Scotia uses Halifax's deed transfer rate, and Prince Edward Island's first-time buyer exemption is not included.

What "Net Cost" Means

For renting: total rent paid, minus what your invested down payment and monthly savings earned. For buying: total cash spent (down payment, closing, mortgage payments, taxes, insurance, maintenance, selling costs) minus the net equity you walk away with if you sell. Whoever has the lower net cost wins.

What This Calculator Does Not Include

This is a simplified model. It does not account for provincial income tax differences affecting investment returns, potential rental income from a basement suite, the emotional and spiritual value of stability for your family, or future interest rate changes on renewal. Property tax is held constant (in reality, assessed values and rates change). Treat it as a strong starting point, and confirm the details with your lender and lawyer before you sign.

The CMHC Factor

If your down payment is less than 20%, you are required to purchase mortgage default insurance from CMHC (or a private insurer). The premium ranges from 2.8% to 4% of the mortgage amount (0.2% more on a 30-year amortization) and is added to your mortgage balance. In Ontario, Quebec and Saskatchewan, provincial sales tax on the premium is due in cash at closing. This calculator includes both.

For a deeper look at the homebuying process in Canada, including FHSA, RRSP Home Buyers' Plan, and what to expect at closing, read our Christian Homebuying Guide.

Frequently Asked Questions

Is it better to rent or buy a home in Canada?

It depends on your local market, how long you plan to stay, what your down payment could earn if you invested it, and what matters to your family beyond the money. In high-priced markets like Toronto and Vancouver, renting and investing the difference often keeps pace with buying for a decade or more. In smaller cities, buying tends to win sooner. Run your own numbers above, because a few hundred dollars of rent or one point of interest can change the answer.

What is the break-even point for buying vs renting?

The break-even point is the number of years you need to own before buying comes out ahead of renting and investing, once land transfer tax, CMHC insurance, interest, selling costs and the return on your down payment are all counted. It varies widely, from under 10 years to more than 20, depending on prices, rent, interest rates and returns. If you may move within five years, renting usually wins, because the costs of buying and selling have no time to be earned back. The calculator shows your own breakeven year.

What costs do people forget when calculating homeownership?

Property tax (often 0.5% to 1.5% of the home's value each year in Ontario), home insurance, maintenance (budget about 1% of the value a year), CMHC mortgage insurance when you put down less than 20%, sales tax on that premium in Ontario, Quebec and Saskatchewan, land transfer tax, legal fees, and the cost of selling when you move. Together they can add tens of thousands of dollars to the real cost of owning.

Does homeownership build more wealth than renting in Canada?

Only sometimes. A renter who invests what a homeowner puts into the down payment and the extra monthly costs can end up with a similar amount. Owning does give you forced savings and protection from rent increases, and those count for a lot of families. The idea that rent is money thrown away leaves out everything an owner pays that never becomes equity: interest, property tax, insurance, maintenance and the costs of buying and selling.

Is buying a home a spiritual decision?

It is a stewardship decision, which makes it spiritual by definition. God prefers neither homeowners nor renters, and no verse ranks a mortgage above a lease. The question is alignment: does this purchase fit your responsibilities, your resources, and your season of life? A Christian man who cannot comfortably afford a home and buys anyway because of cultural pressure has let the culture make the call for him. Stewardship makes it on purpose.