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Rent or buy calculator

Calculate the costs associated with buying and owning a home, then compare with the equivalent monthly rent to help decide if renting or buying is the best option for you.
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HOME OWNERSHIP
Home ownership
 
$
 
 
 
%      / month
 
 
%     
 
 
years
LOOKING FORWARD
Looking forward
 
 
years
 
 
%
 
 
%
 
 
%
 
 
%
TAXES
Taxes
 
 
%      / year
 
$
 
CLOSING COSTS
Closing costs
 
 
%     
 
 
%     
ADDITIONAL HOME COSTS
Additional home ownership costs
 
 
%      / year
 
$
/ year
 
$
  / year
Mortgage insurance premium
(if applicable)
 
 
 
 
 
$
  / year
ADDITIONAL RENTING COSTS
Additional renting costs
 
 
months     
 
$
 
 
$
  / year

Renting is better if...

you can rent a similar home for less than:

$0 / MONTH
 RentBuy
Initial costs  
Recurring costs  
Opportunity costs  
Net proceeds  
TOTAL  
Costs after   years

Assumptions
Mortgage rates are compounded semi-annually within this tool.

The calculations in this tool are based on a fixed-term interest rate.

This tool calculates the opportunity cost (the difference between buying and renting) at the expected investment rate over the long term.

This tool assumes that the home in question will be your principal residence, located in Canada, and as such it will qualify for the principal residence exemption, meaning that any increase in the Fair Market Value of this home will not be taxed when you resell in the future.

This tool also assumes that annual property taxes, insurance premiums, maintenance/repair/renovation/condominium fees, rental deposits and other costs associated with either renting or buying change with inflation. As such, the tool adjusts values annually following what is entered as the rate of inflation over the course of a 30-year period.

The average inflation rate is based on historical changes in the Consumer Price Index, Statistics Canada, CANSIM, table 326-0021 and Catalogue nos. 62-001-X, 62-010-X and 62-557-X.

This tool calculates mortgage insurance premiums (if applicable) as part of the mortgage, not as a one-time lump-sum payment.

CMHC mortgage insurance premiums listed within this tool are current as of June 1, 2015.

The average changes in home value and rent listed within this tool are based on CMHC’s Housing Market Outlook – Canada Edition and Rental Market reports, and are current as of fall 2015.

This tool rounds to the nearest dollar.

Not sure whether to rent or buy? Let us help.

An MD Advisor* can work with you to walk you through the costs associated with purchasing or renting a home, including annual property taxes, insurance premiums, rental deposits, fees and other costs, to determine whether buying or renting is better for you at this point in your career.

Contact an MD Advisor

* MD Advisor refers to an MD Management Limited Financial Consultant or Investment Advisor (in Quebec).