Canada · Interactive Calculator
Canada Rent vs Buy Calculator
Compare the long-term wealth impact of renting vs buying a home in Canada.
Recommendation
Calculating...
Review the comparison below to see whether renting or buying builds more wealth over time.
Renting & Investing
Renting and investing the surplus cash flow.
- Net Wealth (Year 10)
- $0
- Monthly Cost (Year 1)
- $0
- Total Spent (Rent)
- $0
Buying Home
Purchasing a home and building equity.
- Net Wealth (Year 10)
- $0
- Monthly Cost (Year 1)
- $0
- Total Spent (Interest+Fees)
- $0
Comparison
- Wealth Difference $0
- Break-even Year –
- Upfront Cash Required (Buy) $0
Analysis
Update the inputs to generate an analysis.
In Canada's competitive housing market, the choice between renting and buying is complex. This calculator compares the net wealth generated by owning a home versus renting and investing your capital in the market (e.g., TFSA/RRSP).
The Calculations
- Buying: Includes Land Transfer Tax (LTT), CMHC Insurance (if <20% down), and annual property taxes/maintenance.
- Renting: Assumes you invest the initial down payment and any monthly savings into a portfolio growing at a set rate (e.g., 6%).
Regional Differences
- Toronto/Vancouver: High prices mean large mortgages, but renting can also be expensive. High LTT in Toronto adds to upfront costs.
- Alberta: No Land Transfer Tax makes entry cheaper.
- Montreal/Quebec: "Welcome Tax" applies on purchase.
Run the numbers for your province to see the break-even point.