Rent vs Buy Calculator Canada
Use this rent vs buy calculator to compare the year 1 cost of buying versus renting in Canada, where closing costs typically add 1.5–4% of purchase price. Enter home price, down payment, mortgage rate, monthly rent, and province to factor in land transfer tax and CMHC; then see your break-even timeline.
Buy vs Rent Comparison
Compare the year 1 cost of buying (mortgage, property tax, maintenance, LTT, CMHC) vs renting. Includes provincial land transfer tax and CMHC when down payment is under 20%.
10% down · CMHC required
Year 1: Buy
$55,887
~$4,657/mo
Year 1: Rent
$26,400
~$2,200/mo
One-time costs
Land transfer tax: $8,525 · CMHC premium: $16,740
Opportunity cost of down payment: $3,000/yr at 5%
Estimated breakeven: 24 years — when ongoing cost of owning (interest, tax, maintenance) falls below rent.
How Rent vs Buy Calculator Canada Works
- Enter home price and down payment: Purchase price and planned down payment.
- Set mortgage rate and rent: Expected mortgage rate and current/expected rent.
- Add assumptions: Appreciation rate, investment return, maintenance.
- Compare year 1 and break-even: See when buying becomes advantageous.
Includes provincial land transfer tax (Ontario and BC have tiered rates; Alberta has none), CMHC premiums for down payments under 20%, estimated maintenance (1% of home value), and opportunity cost of down payment. Assumes typical appreciation and investment returns.
Frequently Asked Questions
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