Is renting or buying the smarter financial move at today's prices? Compare the true cost of ownership against renting + investing the difference over time. Now with CMHC insurance, TFSA sheltering, and ownership cost inflation.
CMHC + TFSA Modeling
Real Canadian rules applied
Opportunity Cost
Down payment + savings growth
Ownership Cost Inflation
Rising taxes, insurance & maintenance
Property tax, insurance, maintenance & condo fees increase each year
Land transfer tax: $0
Deducted when you sell (buyer + seller agent)
Ontario rent guideline has been ≤2.5% for 13+ years
XEQT historical ~8%, GICs ~4-5%
For capital gains tax on non-registered investments
Net position after 10 years
$0
The Verdict
Calculating...
Whether you decide to buy or keep renting, our mortgage experts can help you make the smartest financial decision for your situation.
With home prices elevated and mortgage rates between 4–5%, the age-old question of renting vs. buying has never been more nuanced. This calculator helps you compare both scenarios using real Canadian rules, including CMHC insurance premiums, TFSA tax sheltering, ownership cost inflation, and the principal residence capital gains exemption.
Buying tends to win when appreciation is strong (4%+), your time horizon is long (15+ years), leverage amplifies gains, and you wouldn't have invested the difference anyway. Renting tends to win when the price-to-rent ratio is high (25x+), you have a short time horizon, investment returns are strong, you maximize TFSA room, and you're disciplined about investing savings.
→ Already own and considering selling? Try the Keep vs Sell Calculator
⚠️ Important Disclaimer
This calculator provides estimates for educational purposes only. CMHC premiums use official tier rates. Land transfer tax uses the official Ontario bracket schedule; Toronto buyers pay both provincial and municipal LTT. TFSA room uses 2026 cumulative limits ($109,000 per person). Selling commission is deducted from the buyer's net worth at the end of the holding period. Actual results will vary based on market conditions, personal circumstances, and investment performance. Consult a licensed mortgage professional before making any financial decisions.
The calculator compares two scenarios over your chosen timeframe: buying a home (building equity through appreciation and mortgage paydown) vs. renting and investing the difference (down payment + cost savings). It accounts for mortgage payments, property taxes, maintenance, rent increases, investment returns, and capital gains taxes.
Not always. The answer depends on local market conditions, how long you plan to stay, rent-to-price ratios, and investment returns. In expensive markets like Vancouver or Toronto, renting and investing can sometimes produce better net worth outcomes over 5-10 years, especially with high interest rates.
The calculator uses Canadian-specific assumptions: semi-annual compounding for mortgage math, principal residence capital gains exemption (no tax on home appreciation), taxable investment gains at your marginal rate, and annual maintenance costs of approximately 1% of home value. All assumptions are adjustable.
Home appreciation is tax-free in Canada for your principal residence. Even modest 3-4% annual appreciation builds significant wealth due to leverage — a 20% down payment means you control 100% of the appreciation. This tax-free leveraged return is a major advantage of buying.
Short holding periods often favour renting. Closing costs (land transfer tax, legal fees, realtor commissions on sale) can total 5-8% of the purchase price. You typically need 4-5+ years to recoup these costs through appreciation and equity buildup. Run the numbers with this calculator to see your breakeven point.
Pick a time that works best for you
