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Compare current rates from Canada's top lenders including Big 6 Banks and monoline lenders. Updated twice daily.
Rent vs Buy Calculator
Compare the financial impact of renting vs buying a home.
🏠Home Purchase
20.0% of home price
📊Monthly Costs
🏢Renting
📈Assumptions
Return on down payment if invested
🏠 Buying Wins
Over 10 years, buying leaves you with $40,550 more
Break-even point: Year 1
Buying Scenario
Renting Scenario
Explore More Calculators
Try these other free Canadian mortgage tools to plan your home purchase.
Frequently Asked Questions
Is it better to rent or buy in Canada right now?
It depends on your local market, financial situation, and lifestyle. In many Canadian cities with high prices (Toronto, Vancouver), renting and investing the difference can build more wealth short-term. In more affordable markets (Calgary, Edmonton), buying often wins. Use our calculator with your specific numbers to see which option builds more wealth over your planned timeframe.
What is the 5% rule for rent vs buy?
The 5% rule is a quick guideline: multiply your home's value by 5% and divide by 12. If your monthly rent is less than this amount, renting is likely better financially. For a $600,000 home: $600,000 × 5% = $30,000/year ÷ 12 = $2,500/month. If you can rent for less than $2,500, renting may be the smarter choice.
How long should I plan to stay in a home for buying to make sense?
Generally 5-7 years minimum. The break-even point depends on closing costs, mortgage penalties, maintenance, and appreciation. In the first few years, most of your mortgage payment goes to interest, not equity. If you might move within 3-4 years, renting is usually better due to transaction costs. Our calculator shows your exact break-even timeline.
What hidden costs of homeownership should I consider?
Beyond mortgage payments, homeowners pay: property tax (0.5-2.5% of value annually), maintenance (1-3% of value annually), insurance ($800-2,000/year), utilities (often higher than rentals), condo fees (if applicable), and potential special assessments. These can add $500-1,500+ monthly on top of your mortgage. Our calculator includes these in the comparison.
Can I build more wealth by renting and investing?
Often yes, if you invest the difference between renting and owning costs. For example, if owning costs $3,500/month and renting costs $2,200, investing the $1,300 difference at 7% annually builds significant wealth. However, this requires financial discipline to actually invest the savings. Homeownership forces savings through equity buildup. Our calculator compares both scenarios with investment returns.