Buying is not always better than renting — it depends on how long you stay, how much prices appreciate, and what you could earn investing your down payment instead. This calculator runs a true financial comparison including equity built, opportunity cost, and appreciation to show which option comes out ahead over your chosen time horizon.
Compare the true long-term cost of renting versus owning in Canada, including equity built.
Fill in the Buying Scenario column — purchase price, down payment, mortgage rate, and expected annual appreciation. Then fill in the Renting Scenario — your monthly rent, expected annual rent increase, comparison period (5–20 years), and what annual return you'd earn investing the down payment instead. Every field updates the results in real time.
The results show total net cost for each path over your chosen time horizon. For buying, this includes mortgage payments, property tax, maintenance, and closing costs, offset by equity built and appreciation. For renting, it shows total rent paid, offset by the growth of your invested down payment.
The opportunity cost field is critical and often overlooked. If you rent instead of buying, your down payment can be invested. A $150,000 down payment growing at 6% per year for 10 years becomes roughly $268,000 — that's real wealth the buyer doesn't have in their portfolio. This calculator factors that in so you're comparing apples to apples.
The break-even year — the point where buying becomes cheaper than renting — depends heavily on your city, appreciation assumptions, and how long you stay. In slow-appreciation markets like some Atlantic provinces, buying can break even in 3–4 years. In Toronto or Vancouver, it may take 7–10 years. Adjust the appreciation slider to see how sensitive the answer is to different scenarios.
It depends on your city, how long you plan to stay, and your down payment size. In cities like Toronto and Vancouver, the break-even point (where buying becomes cheaper) is often 5–8 years. In Calgary or Edmonton, it may be 2–3 years.
If you buy, your down payment is tied up in the home. If you rented instead, you could invest that down payment in equities or other assets. The opportunity cost is what that money would have grown to — this calculator includes that comparison.
Nationally, Canadian home prices have appreciated roughly 3–5% annually over the long term, though some markets (Vancouver, Toronto) have seen higher averages. You can adjust the appreciation rate in this calculator to model different scenarios.
Not directly, but if a renter invests the difference between renting and ownership costs (mortgage, maintenance, property tax) into an investment account, they can build significant wealth. This calculator models both paths.
Explore current rates from 16+ Canadian lenders, or read our guides to understand your options.