Compare the true cost of renting vs buying in Canada — including equity, opportunity cost, and break-even year.
Return on down payment if invested instead
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The rent vs buy decision is one of the most significant financial choices Canadians make. The right answer depends on your local market, time horizon, down payment size, and what you'd do with the money if you didn't buy.
Beyond your mortgage payment, buying a home involves property taxes (typically 0.5–1.5% of home value annually), maintenance (budget 1% of home value per year), home insurance, land transfer tax, legal fees, and potential condo fees. These costs add up and are often underestimated by first-time buyers.
A $150,000 down payment invested in a diversified portfolio returning 6% annually would be worth over $268,000 after 10 years. This opportunity cost is real — and renters who invest their savings can build significant wealth without owning property.
Since 2018, all Canadian mortgage applicants must qualify at their contract rate plus 2% (or 5.25%, whichever is higher). This stress test ensures buyers can still afford payments if rates rise — but it also reduces the maximum mortgage you qualify for.
Canadian first-time buyers have access to several programs to help with the down payment: the FHSA (save up to $40,000 tax-free), the RRSP Home Buyers' Plan (withdraw up to $60,000 tax-free), and various provincial and municipal programs offering grants and interest-free loans.
This calculator provides estimates based on your inputs and assumed rates of return and appreciation. Real estate markets vary significantly by region. Program details are subject to change — verify current terms with the relevant program provider. Not financial advice.