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Canada Buy vs Rent Calculator

Compare the long-term financial outcome of buying a home versus renting in Canada. See your projected net worth, breakeven year, and total costs under either path.

Purchase & Loan

CAD
CAD 100,000CAD 2,000,000
CAD
CAD 25,000CAD 500,000
5%100%
%
1%10%
yrs
5 yrs30 yrs

Used for CMHC insurance tax (QC: 9.975% QST, SK: 6% PST)

Rental

CAD
CAD 500CAD 10,000

Your Estimate

Renting Net Worth at Year 10

CAD -260,830

Buying Net Worth

CAD -297,540

Renting Net Worth

CAD -260,830

Difference

Renting saves CAD 36,710

Renting is the better financial choice throughout this period. Buying never catches up within 10 years.

BuyingRenting

Net Worth Over Time

Buying
Renting
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Canada Buy vs Rent — Frequently Asked Questions

Is buying always better than renting in Canada?
No, buying is not always better than renting. The right choice depends on how long you plan to stay, your local real estate market, mortgage rates, and your investment alternatives. Our buy vs rent calculator computes your breakeven year — the point when buying becomes more financially advantageous than renting. In many Canadian cities, renting can be the better financial decision in the short to medium term.
What are the hidden costs of buying a home in Canada?
Beyond your mortgage payment, homeownership includes property taxes (typically 0.5% to 1.5% of home value), maintenance costs (roughly 1% of home value annually), homeowners insurance, CMHC insurance if your down payment is under 20%, closing costs including land transfer taxes, and realtor commissions when you sell — typically 4% to 5% of the sale price.
How does CMHC insurance affect the buy vs rent decision?
CMHC insurance adds 2.80% to 4.00% to your mortgage principal, increasing monthly payments and total interest. This makes buying more expensive in the early years and extends the breakeven period. If you have less than 20% down, our calculator factors in CMHC premiums plus applicable provincial taxes — Quebec charges 9.975% QST and Saskatchewan charges 6% PST.
What is the breakeven year in a buy vs rent analysis?
The breakeven year is the point in time when the cumulative net worth from buying exceeds the cumulative net worth from renting. Before the breakeven year, renting leaves you with more wealth. After it, buying pulls ahead. A breakeven year within 3 to 5 years suggests buying is favorable for your situation. Beyond 7 years, renting may be the better financial choice.
What assumptions does the buy vs rent calculator make?
Our calculator factors in home appreciation, rent growth, investment returns on the down payment and savings, property taxes, maintenance, insurance, CMHC insurance, realtor commissions when selling, and mortgage amortization. You can adjust each assumption to match your local market conditions for a personalized comparison.