Am I better off renting or buying? The honest answer depends on the horizon, the home, and the assumptions — so this calculator shows the net cost of each side at 5 years and at 10 years, and the year the two sides cross over, if they ever do. It never tells you what to do: it shows the numbers and leaves the decision to you.
Am I better off renting or buying?
How the comparison works
The calculator adds up the true net cost of each side over the horizon you choose — not just the monthly payments. The net cost of buying is the mortgage interest you pay, property tax, maintenance, home insurance and condo fees, land transfer tax, the sales tax on the CMHC premium, the cost of selling at the end, and the investment return you give up by tying up the down payment — minus the home’s appreciation. The principal you repay is not a cost: it is equity you keep. The net cost of renting is the rent you pay, minus the investment growth on the down payment and on the monthly amount you save by renting instead of owning. The crossover year is the first year in which the buy-side net cost falls below the rent-side net cost.
Two Canadian rules are non-negotiable in this comparison. First, there is no mortgage-interest tax deduction in Canada — that is the single biggest difference from US rent-versus-buy calculators, and it is stated here rather than silently assumed. Second, the home is treated as a principal residence, so no capital gains tax is charged on the sale. The CMHC premium is included through the shared mortgage engine when the down payment is under 20%, and land transfer tax comes from the Land Transfer Tax Calculator tables.
Assumptions
Defaults are maintenance at 1% of the price per year, home appreciation at 3% a year, an investment return of 5% a year, and selling costs of 5% of the sale price — every one of them is labelled an assumption and editable. Property tax, insurance and condo fees are held flat over the horizon, rent rises at the rate you enter, and the mortgage rate is held constant. Rent-side investments are modelled pre-tax: in a non-registered account the growth would be taxed, which would make renting look worse than shown here. This is a planning comparison, not a recommendation — the verdict line reports the numbers on your assumptions and never tells you to buy or rent.
Frequently asked questions
Why does renting win over a short horizon?
Because buying has large one-off costs — land transfer tax, selling costs, and the return given up on the down payment — that take years to recover. Over 5 years on a typical GTA condo, those costs outweigh the equity you build, so renting usually comes out ahead. Over a longer horizon, appreciation and the principal you repay can turn it around.
Is there a mortgage-interest tax deduction in Canada?
No. Unlike the United States, Canada gives no tax deduction for mortgage interest on a principal residence. This calculator states that plainly and does not model one.
Do I pay capital gains tax when I sell my home?
Not on a principal residence. The principal-residence exemption means the gain on your home is not taxed when you sell it, and this calculator assumes that exemption applies.
What is the crossover year?
The first year in which the net cost of buying falls below the net cost of renting. If the two sides never cross within the 30 years modelled, the calculator says so instead of inventing a year.
What moves the answer most?
Home appreciation, the investment return, and the horizon. Raise appreciation by 1% and the 10-year result moves a long way in buying’s favour; raise the investment return and renting looks better. Change those three inputs first when you are testing a scenario.
Methodology and sources
Methodology: The net cost of buying is mortgage interest (Canadian semi-annual compounding) plus property tax, maintenance, insurance and condo fees, land transfer tax from the Land Transfer Tax Calculator tables, the sales tax on the CMHC premium (8% in Ontario, 9% in Quebec for 2026), selling costs, and the investment return given up on the down payment, minus the home’s appreciation. The net cost of renting is the rent paid, minus the investment growth on the down payment and on the monthly amount saved by renting, modelled month by month. The CMHC premium uses the published tiers (4.00% above 90% loan-to-value, 3.10% from 85% to 90%, 2.80% from 80% to 85%). There is no mortgage-interest deduction in Canada, and the principal-residence exemption applies to the sale. Rent-side investment growth is modelled pre-tax. Checks: with appreciation at 0% and the investment return equal to the mortgage rate, a 5-year horizon on a typical GTA condo shows renting ahead; switching the same purchase from Ontario to Alberta (no land transfer tax) reduces the buy-side cost by exactly the Ontario land transfer tax for that price; and raising appreciation by 1% narrows the result in buying’s favour at 10 years. Sources: Ontario — Calculating Land Transfer Tax, CMHC — Mortgage Loan Insurance Cost.
2026 rules · Verified November 9, 2026
How we keep this calculator honest: The comparison is built from the shared mortgage engine and the verified land transfer tax tables, its Canadian rules (no interest deduction, principal-residence exemption, pre-tax rent-side growth) are stated in the methodology, and its three sanity checks were run live on the published page: a short horizon favours renting, the Alberta switch changes the buy-side cost by exactly the Ontario tax, and higher appreciation moves the 10-year result toward buying.
Your numbers never leave this page. This calculator runs entirely in your browser — nothing you enter is stored or sent anywhere.
General information only — not financial advice. A rent-versus-buy decision also depends on job security, how long you will stay, and what home ownership is worth to you — none of which a calculator can price.
Related tools
Work out what you can borrow with the Mortgage Affordability Calculator, the tax on the purchase with the Land Transfer Tax Calculator, the cash you need on closing day with the Closing Costs Calculator, and the monthly payment with the Canadian Mortgage Calculator. Prefer reading? Browse the mortgage guides.