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Compare the true long-term cost of buying vs. renting a home.
Purchasing Power
$782,382.00
Present Value
$136,000.00
Purchasing Power
$12,577.00
Value Lost
$59,709.00
Future Cost
$782,382.00
Estimates only - not financial advice. Verify with a qualified professional before making decisions.
Over a term of 48 months, your fixed monthly payment is $12,577.00. Total interest paid is $59,709.00, which works out to a 5.2% annual cost of borrowing.
💡Total Interest on $680,000.00: $59,709.00
Monthly Commitment: $12,577.00
Sample scenarios using current reference rate data.
Source: Bank of Canada · Updated 2026-04-01
Source: Bank of Canada · Updated 2026-04-01
Source: Bank of Canada · Updated 2026-04-01
A rent vs buy calculator compares the long-term cost of owning a home (mortgage, maintenance, property tax, transaction costs) against renting the equivalent property and investing the difference. It's not just about the monthly payment - it accounts for opportunity cost on your deposit, property appreciation, and the equity you build by paying down a mortgage.
Owning net cost = Total housing costs − Equity built − Property appreciationComparing only the mortgage payment against the rent payment.
True ownership cost includes maintenance (typically 1-2% of property value per year), property tax, insurance, and amortised transaction costs. The full picture is often 30-50% above the mortgage line.
Ignoring the opportunity cost of the deposit.
A 20% deposit on a £300,000 home is £60,000 that could otherwise be invested. The return you'd have earned on that money is a real cost of buying, not a sunk number.
Assuming property only goes up.
Historical national averages mask huge regional variation. Try modelling 0% appreciation as a stress test - if buying still beats renting at 0%, the decision is robust.
Reference formula and educational copy. For CA-specific rate data see the source link in the disclaimer block above. This is not financial advice.
Financial planning and home financing calculations in Canada are highly dependent on national qualifying rules and CMHC mortgage insurance guidelines.
The Financial Consumer Agency of Canada (FCAC) ensures federally regulated financial institutions comply with consumer protection regulations and clear credit disclosure guidelines.
Amortization modeling is designed around semi-annual compounding to comply with standard Canadian lending regulations.
Net Cost = Purchase Price + Maintenance + Tax - Future EquityCommon questions about using this tool for CA.
Built & maintained by: Dhanasekar · Developer
Formula reference: Bank of Canada
Data last updated: April 1, 2026
This is a free educational tool, not financial advice.
Important: This calculator provides estimates for informational purposes only and does not constitute financial advice. Actual rates and terms may vary. Always consult a qualified financial advisor before making financial decisions.
Compare the true long-term cost of buying vs. renting a home.
Buy Path
Monthly Payment
$12,577.00
Total Invested
$136,000.00
Rent Path
Monthly Rent
$1,500.00
Investment Gain
Compounding
In this scenario, renting remains financially superior over the entire period - consider adjusting your inputs or reviewing the purchase price and maintenance assumptions.
Property vs Rent Comparison
Renting is the stronger strategy in this scenario. Buying would require higher local appreciation rates to break even.
Over a term of 48 months, your fixed monthly payment is $12,577.00. Total interest paid is $59,709.00, which works out to a 5.2% annual cost of borrowing.
💡Total Interest on $680,000.00: $59,709.00
Monthly Commitment: $12,577.00