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Buy or rent?

A useful starting point for your next conversation. No sign-up required.

Compare a similar home in the same area. All starting figures and growth rates are illustrative assumptions, not current rents, prices, forecasts or lending offers.

Your two options

How many years might you stay?5
Monthly costs, growth and selling assumptions

Ownership costs per month

Rental costs per month

Future assumptions

Rent growth is a scenario assumption, not a legal rent-increase allowance. Growth applies annually; mortgage rate stays constant. Maintenance excludes work already covered by condo fees. Closing extras include legal, inspection, title insurance and adjustments.

LOOK BEYOND THE MONTHLY PAYMENT

After 5 years, what might you have?

Both scenarios start with the same $200,566. The renter invests the cash that would have gone into buying. Whichever option costs less each month invests that saving.

Buy · net sale equity + investments$297,034
Rent · investment balance$370,676

Renting ends with $73,641 more in this scenario. This is not a recommendation. Changing investment returns, home values or your moving date can change the outcome.

At the end of yearBuy: equity + investmentsRent: investments
1$160,965$232,825
2$193,365$265,940
3$226,816$299,936
4$261,359$334,839
5$297,034$370,676
See how the final buying figure is built
Assumed home value$938,469
Remaining mortgage$597,015
Selling costs$44,419
Invested monthly savings+ $0

Sale equity can be negative. Selling is assumed at the end of each comparison year to make the outcomes comparable. Investment balances assume every monthly saving is invested, with returns compounded monthly.

THE NUMBERS ARE ONLY PART OF IT

What would suit your life?

Renting

Potential benefits

  • Often less cash committed upfront and easier to change location.
  • Fewer major repair responsibilities; money can stay invested elsewhere.

Potential trade-offs

  • No ownership equity from rent payments.
  • Less control over renovations and future tenancy; rent and moving costs may change.
  • The investment advantage depends on actually saving the difference.

Buying

Potential benefits

  • Build equity as mortgage principal is repaid.
  • More control over the home, subject to condo rules, permits and other restrictions.
  • May suit a stable location and longer planning horizon.

Potential trade-offs

  • Significant closing and selling costs, and less accessible savings.
  • Responsibility for maintenance, special assessments and financing changes.
  • Home values can fall; equity growth is not guaranteed.

Questions for your next step

  • With a longer stay, stress-test mortgage renewals and changing space needs.
  • How likely is a job, family or location change? Renting may preserve more flexibility.
  • Would managing contractors and unexpected repairs feel worthwhile to you?
  • Could both choices fit your income, other debts and emergency savings? This tool does not assess mortgage qualification.
Model scope and sources

Residential resale, owner-occupied comparison. Includes Ontario and optional Toronto transfer taxes, assumed eligible rebates, standard financed mortgage insurance and Ontario premium tax. No renewal-rate changes, investment tax beyond your entered net return, special assessments, major renovations, moving costs, refundable rental deposits, non-resident taxes or new-build HST. Assumes no tax on home-sale gains; verify principal-residence eligibility. All figures are nominal dollars. Rates and qualification should be checked with your advisors.

FCAC rental expenses · FCAC home-buying costs · Closing tax assumptions and sources

Make this plan your own.

A useful starting point. A personal conversation when you’re ready.

Discuss buying vs renting with Tsering
Estimates and general education only. Market data changes. Confirm mortgage, tax, legal and property-specific information with appropriate professionals before making commitments.