Acres

Rent vs. buy

Compares what you'd be worth after renting and investing the difference with what you'd be worth after buying.

After 10 years

Buying wins by $70,505

Buying pulls ahead in year 5.

Renting

$
%
Capped at 5% through 2027
$
Monthly

Buying

$
%
%
$
Tax, legal, inspection
$
$
%
Of the home's value
$
Monthly
%
Commission, HST, legal
Amortization

Assumptions

%
Per year
%
On what the renter invests
%
Tax, insurance, fees
Compare over

What you'd be worth

If you buyHome value after selling costs, minus the mortgage, plus anything invested
$271,581
If you rentYour down payment and closing costs invested, plus monthly savings
$201,077

First month

OwningMortgage $2,311 + tax, insurance, upkeep
$3,144
RentingRent + tenant insurance
$2,225
Cash to buyDown payment + closing costs
$55,000
The answer swings most on home price growth, the investment return and how long you stay. Try a few versions before deciding.
How it works
  • The buyer pays the down payment, closing costs, mortgage, property tax, insurance, condo fees and upkeep. The renter pays rent and tenant insurance.
  • The renter invests the cash the buyer spent up front. Each month, whoever has the lower costs invests the difference at your investment return.
  • At the end, the buyer sells: their net worth is the home's value minus selling costs and the mortgage left, plus anything they invested.
  • Rent, property tax, insurance and condo fees rise once a year at the rates you set. Growth rates are your assumptions, not forecasts.

Sources

CMHC: Mortgage loan insurance premiumsGovernment of Nova Scotia: Residential Tenancies Program legislative changes

Estimate only, not financial advice. All growth rates are your assumptions, not forecasts. Ignores taxes on investment gains (a principal residence is tax-free when sold; investments may not be).