Rent vs Buy Calculator Canada

Yes. The calculator includes property tax estimates for all Canadian provinces and territories. You can select your province from the dropdown, and the calculator will use typical property tax rates for that region. However, rates can vary by municipality, so always verify with local sources.

The monthly buying cost includes: mortgage principal and interest, property taxes, home insurance, estimated maintenance (typically 1% of home value annually), and condo fees if applicable. We also factor in one-time closing costs spread across the analysis period.

When you buy, your down payment and closing costs are tied up in the home. We calculate what those funds could have earned if invested elsewhere at your specified investment return rate. This 'lost growth' is added to the buying cost for a fair comparison.

The breakeven point is the year when the total net cost of buying becomes less than renting. It accounts for equity buildup, home appreciation, and all costs. If buying is always more expensive within 10 years, we report 'No breakeven within 10 years.'

Conservative: assumes lower home appreciation (2%), moderate returns (4%), and higher inflation (2.5%). Typical: balanced middle ground (3% appreciation, 5% returns, 2% inflation). Aggressive: optimistic assumptions (5% appreciation, 7% returns, 1.5% inflation). We recommend starting with 'Typical' and adjusting based on your local market.

Free users can save 1 scenario. Pro users ($9/month or $49 lifetime) can save unlimited scenarios and export detailed PDF reports. All scenarios are stored locally in your browser.

Monthly costs are only part of the picture. When buying, you build equity. Over time, as you pay down the mortgage and the home appreciates, your net position can become better than renting, even if monthly costs are higher initially.

If your down payment is less than 20%, you'll need mortgage default insurance in Canada. This typically adds 2.8-4% to your mortgage amount for down payments of 5-19.99%. Add this to your closing costs percentage for accuracy.

We use typical provincial averages. Actual property taxes vary significantly by municipality. For example, Toronto (ON) averages ~0.6%, while Vancouver (BC) averages ~0.25%. Check your local property tax rate and adjust the percentage in the calculator.

No. This calculator is an educational tool for informational purposes only. It does not constitute financial, legal, or real estate advice. The decision to rent or buy depends on many personal factors beyond this calculation. Consult with qualified professionals before making major financial decisions.

Yes! Click the 'Share' button to copy a URL that encodes all your inputs. Anyone with the link can see your exact scenario and adjust it for their own needs.

If you plan to move within 3-5 years, renting is often more cost-effective due to upfront buying costs and real estate transaction fees. Use the 5-year projection and consider selling costs (typically 5-7% of home value in Canada) when making your decision.