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Rent vs. Own Calculator

Compare rent paid, ownership expenses and mortgage principal repaid. Enter your own figures; the starting numbers are examples.

Buying a Home / Rent vs. Own

1 · Your Current Rent

Monthly rent ($)Expected annual rent increase (%)

Editable examples, not forecasts. Rent increases depend on your tenancy and applicable Ontario rules.

2 · The Home You’re Considering

Purchase price ($)Down payment ($)Mortgage interest rate (%)Amortization periodEstimated Annual Property Value Change (%)

Property values can increase or decrease over time. Adjust this assumption to see how different property-value scenarios could affect your estimated equity. Default: 0%, with no value change assumed. Enter a rate from −50% to +50%.

Location At least one borrower meets CMHC Home Start’s first-time buyer definition, or the home is newly built.

Monthly payments using a Canadian fixed-rate convention. Rate stays constant in this illustration, including renewals. Insurance estimate assumes a traditional down payment and an owner-occupied home with one or two residences. Understand mortgage approval.

3 · Ownership Costs

Annual Property Tax ($)Monthly Condo Fees ($) — optionalMonthly Home Insurance ($) — estimateAnnual increase in ongoing costs (%)

Annual property tax starts at $3,600 as an editable example, not an automatic assessment. Use the property’s tax bill; monthly tax is annual tax ÷ 12. Home insurance starts at $100/month as an editable estimate—replace it with your quote.

Enter the monthly condo fee if you are considering a condominium. Leave at $0 if it does not apply. Repairs and utilities should be budgeted separately; allow for these in your own budget.

4 · Cash Needed to Buy

How many people are buying the property?Buyer 1 — Is Buyer 1 a First-Time Home Buyer?Buyer 2 — Is Buyer 2 a First-Time Home Buyer?Are the two buyers spouses?

Spouses include married couples, or unmarried couples living together continuously for at least three years, or in a relationship of some permanence if they are parents of a child. If unsure, ask your lawyer.

Did the spouse who previously owned a home own any home while you were spouses?Is the spouse who previously owned a home a Canadian citizen or permanent resident at closing?Buyer 1 Ownership (%)Buyer 2 Ownership (%)Do the buyer(s) marked Yes meet the other refund requirements?

A Yes first-time status means never owning any home or interest in a home anywhere in the world. Other requirements: each claimant is at least 18, is a Canadian citizen or permanent resident at closing, will occupy this home as their principal residence within nine months, and any spouse (even if not buying) has not owned a home while they were spouses. Check these editable example answers. If citizenship will be obtained later, confirm the application and timing with your lawyer; no uncertain refund is deducted here.

Buying with someone else? First-time buyer land transfer tax eligibility can change when one buyer has owned a home before. Your estimated refund may depend on your relationship and each buyer’s ownership share. Ontario rules · Toronto rules.

Estimated buying legal fees, all-in ($)Other closing-cost allowance ($)

Legal and other closing costs are editable allowances, not quotes. The other-cost field starts at $1,000 as a placeholder for inspection, title insurance, registration/disbursements and closing adjustments. Replace it with your estimate. Some items may be included in your lawyer’s all-in quote—do not count them twice. It does not include the land transfer taxes, Toronto administration fee or insurance premium tax listed separately. The buyer questions estimate applicable refunds; your lawyer must confirm eligibility. Review first-time buyer refund requirements with your lawyer; CMHC has a different first-time buyer definition. This model covers an ordinary owner-occupied resale purchase by Canadian citizens/permanent residents, with one or two residences. New-build HST, foreign-buyer taxes and special assessments are excluded.

ONGOING HOUSING COSTS

Your Monthly Starting Point

This monthly total includes mortgage, property tax, applicable condo fees and home insurance. Upfront cash needed is shown separately below. Budget separately for repairs and utilities.

Check your monthly comfort

UPFRONT PLANNING

Cash Needed to Buy

Your offer deposit is part of the down payment, not an extra cost. Refunds are assumed available at closing when the buyer answers indicate eligibility. Verify timing and eligibility with your lawyer.

Explore land transfer tax and closing costs

See a worked $600,000 Toronto cash-needed example.

YOUR TWO PATHS

Your Rent vs. Own Comparison

Start with where your housing money goes. The main comparison shows payments, expenses and estimated home equity using your selected property-value scenario. Investment growth and selling costs are excluded.

THE RENTING PATH

If You Continue Renting

THE OWNING PATH

If You Buy

UNDERSTAND YOUR EQUITY

How Your Equity Builds

Property values can increase or decrease. This calculator uses the rate you select for illustration only and is not a prediction of future property values.

Equity is the estimated property value less the remaining mortgage. The breakdown separates mortgage paydown from gains or losses in property value. Financed mortgage insurance reduces starting equity. Closing costs do not build equity, and selling costs have not been deducted here.

How this calculator works

Monthly mortgage rate = (1 + annual rate / 2)^(1/6) − 1. Payment = loan × monthly rate / [1 − (1 + monthly rate)^(−12 × amortization years)]. At 0% interest, loan is divided by the number of payments. Each monthly payment is split between interest on the remaining balance and principal.

Mortgage insurance is financed into the loan. CMHC high-ratio premiums for traditional down payments are 2.8%, 3.1% or 4.0% of the base mortgage, depending on loan-to-value; insured 30-year loans add 0.20 percentage points. Ontario’s 8% premium tax is paid upfront. Purchases of $1.5 million or more require at least 20% down in this model.

Rent and ongoing costs increase at each anniversary. Estimated future property value = purchase price × (1 + selected annual property value change / 100)^years. At 0%, the value stays at the purchase price. No investment or savings projections are shown.

Ontario and Toronto taxes are calculated progressively by bracket, using Toronto’s rates effective April 1, 2026. Ontario refund cap: $4,000; Toronto: $4,475, applied in full when the buyer answers indicate eligibility, and capped at actual tax. For two buyers, estimated eligibility considers each buyer’s status, their relationship and ownership shares. Uncertain eligibility is shown for confirmation rather than treated as a guaranteed refund. Toronto’s transaction fee is included with HST. This calculator models one or two residential units.

Sources & assumptions

Rules reviewed September 30, 2026. Follow the sources below and confirm your transaction details.

Results are estimates for education and planning. Mortgage rates and costs can change; home appreciation and investment returns are not guaranteed. Qualification depends on the borrower and lender; closing costs and taxes depend on the transaction. This calculator is not financial, mortgage, legal, tax or investment advice.

Not Sure What These Numbers Mean for You?

Every buyer’s situation is different. If you’d like help understanding your numbers and building a realistic home-buying plan, you can ask Richard a question.

Ask Richard a question

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