Rent vs. Buy Calculator
Compare the real cost of renting vs. buying a home — including opportunity cost, appreciation, and total housing costs.
Calculator component coming soon.
Hidden Costs of Homeownership
Buying is not always cheaper than renting when you factor in: land transfer tax, CMHC insurance (if < 20% down), property taxes (~1% of value/year), home maintenance (1–2% of value/year), condo fees (if applicable), and the opportunity cost of your down payment.
Hidden Costs of Renting
Renting is not always cheaper either. Consider: no equity building, rent inflation over time, less stability, no tax deductions, and the cost of moving more frequently.
Frequently Asked Questions
Is renting or buying cheaper in Canada right now?
In major Canadian cities like Toronto and Vancouver, renting is often cheaper on a monthly cash-flow basis. However, if home prices appreciate significantly, buying builds wealth over time. The answer depends on your local market, time horizon, and financial situation.
What is the opportunity cost of a down payment?
Your down payment is capital that could be invested. If you put $100,000 down, that money isn't in the stock market earning returns. A fair comparison of renting vs. buying accounts for this opportunity cost.