Is buying really better than renting? Compare total wealth after accounting for equity, appreciation, maintenance, and opportunity cost.
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Financial Calculator
Your Situation
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Results
Decision
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Buy: Net Wealth
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Rent: Net Wealth
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Wealth Difference
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Break-Even Year
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Total Buy Costs
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How This Calculator Works
🏠 Buy Scenario
Monthly P&I + tax + insurance + maintenance. Your net wealth = home value − remaining mortgage. Closing costs assumed at 2%.
🏢 Rent Scenario
Monthly rent (growing annually). Down payment and monthly savings vs. buying are invested in a portfolio. Net wealth = investment portfolio value.
📈 Appreciation
Canada long-run average: 4–6%/yr (varies widely by city). USA long-run average: 3–4%/yr. Recent peaks may not continue — use conservative estimates.
💡 Opportunity Cost
The biggest factor renters miss: if you invest the down payment and monthly savings vs. buying into stocks returning 7%/yr, how much do you have?
Year-by-Year Comparison
Year
Home Value
Mortgage Balance
Buy Net Wealth
Rent Portfolio
Advantage
Frequently Asked Questions
The break-even point is typically 4–8 years in most Canadian cities. Before that, transaction costs (land transfer tax, legal fees, realtor commissions on sale) make renting cheaper. After break-even, equity accumulation and appreciation typically favour buying — especially if you hold long-term.
When home appreciation is low and investment returns are high, the renter who invests the down payment can build more wealth. In high-appreciation markets (Vancouver, Toronto), buying wins faster. In flat markets, renting and investing the difference often wins over 10-year periods.
Ontario: rent control applies to units first occupied before Nov 15, 2018 (max increase 2.5% in 2025). BC: max 3% in 2025. Quebec: set by Tribunal administratif du logement. New builds are often exempt — a key risk for long-term renters.
One-time: CMHC premium (if <20% down), land transfer tax (1–2%), legal fees ($1,500–$3,000), home inspection ($400–600). Ongoing: property tax, home insurance, maintenance (budget 1% of home value/year), condo fees if applicable. These are all factored into this calculator.
Yes — this is opportunity cost. $130,000 invested in a diversified portfolio at 7%/yr becomes ~$255,000 in 10 years. That growth must be compared against home equity gains. This is why the calculator includes the investment return rate for the renting scenario.
⚠️ Projections assume constant appreciation and returns. Real estate markets vary significantly by location. Not financial advice.
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