Blog · Calculator
Buy or rent?
Run the Canadian numbers.
CMHC insurance, land transfer tax, the stress test, and 30-year amortizations: the things that decide the answer in Canada, built in. Pick a city, then change anything you know better.
Rules and city estimates last reviewed October 2026. City prices and rents are estimates; replace them with your own numbers.
Start from a city
After 10 years
Renting comes out ahead by $321,792
Renting and investing the difference leaves you $321,792 better off than owning. At these numbers, buying doesn't catch up within 30 years.
- Monthly cost to own
- $7,332
- First year: mortgage, tax, strata, insurance, maintenance
- Monthly cost to rent
- $2,775
- First year, with renter's insurance
- Cash needed to buy
- $143,247
- Down payment, $19,518 land transfer tax, closing costs
- CMHC insurance
- $30,018
- 3.10% of the mortgage, added to it
Where you stand after 10 years
Same starting cash, two choices.
| Measure | Buy | Rent |
|---|---|---|
| Total paid out | $1,044,039 | $376,929 |
| What you have | $657,524 | $979,317 |
| Net position | -$386,514 | $602,388 |
What you have: the home's value less the mortgage and selling costs, or the renter's invested savings. Net position: what you have minus what you paid out.
When does buying pull ahead?
At these numbers, renting stays ahead for 30 years. Buying usually starts behind (closing costs, CMHC) and catches up as equity builds.
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Monthly costs, cash needed, the crossover year, and a link back to your numbers, sent to your inbox.
How the calculator works
Buying in BC and want a second opinion?
We help buyers run the numbers before they commit, and landlords work out what a home would rent for.
- 01
CMHC mortgage insurance
With less than 20% down, the premium (4.00%, 3.10%, or 2.80% of the mortgage depending on the down payment, plus 0.20% for a 30-year amortization) is added to the mortgage, and you pay interest on it for the life of the loan.
- 02
Land transfer tax
BC charges 1% on the first $200,000, 2% up to $2 million, 3% above that, and 2% more on the part of a home's price above $3 million. Ontario charges 0.5% to 2.5% (Toronto adds its own tax, not included). Alberta has none. Quebec's welcome tax depends on the municipality, so you enter it. First-time buyer relief is applied in BC and Ontario.
- 03
The mortgage stress test
Lenders qualify you at the higher of 5.25% or your contract rate plus 2%. The calculator shows that rate so you don't plan around a payment you couldn't be approved for.
- 04
Minimum down payments
5% of the first $500,000 and 10% of the part up to $1.5 million; homes above $1.5 million need 20% and can't use an insured mortgage.
- 05
Renting, counted fairly
Renting isn't throwing money away here: the down payment you keep is invested, and so is every month's saving. Buying has to beat that. Mortgage interest compounds semi-annually, as Canadian fixed-rate mortgages do; investment returns are before tax.
Buy vs rent in Canada: common questions
Is it better to buy or rent in Canada right now?
It depends on your city, how long you'll stay, and your down payment, which is what the calculator answers with your numbers. As a rule of thumb, buying tends to win if you'll stay seven years or more and can put 20% down; renting often wins over shorter stays or with a small down payment, because closing costs and CMHC insurance take years to earn back.
How does CMHC insurance change the math?
A lot. On a $700,000 home with 5% down, the 4.00% premium adds about $26,600 to the mortgage, and you pay interest on it for decades. That's why the calculator adds the premium to the mortgage rather than leaving it out.
What is the mortgage stress test?
Lenders must qualify you at the higher of 5.25% or your contract rate plus 2%, even though you pay your contract rate. With a 4.75% rate you're qualified at 6.75%. It doesn't change your payment, but it limits how much you can borrow.
Can first-time buyers get a 30-year amortization?
Yes. Since December 15, 2024, first-time buyers and buyers of new builds can take a 30-year amortization on an insured mortgage. The payment is lower but you pay more interest overall, CMHC adds 0.20% to the premium, and you still have to pass the stress test. Confirm eligibility with your broker.
How much is land transfer tax?
In BC, 1% on the first $200,000, 2% up to $2 million, and 3% above, plus 2% on the part of a home's price above $3 million. First-time buyers in BC pay no tax on the first $500,000 (up to $8,000 saved) on homes up to $835,000, with partial relief up to $860,000. Ontario charges 0.5% to 2.5% and refunds first-time buyers up to $4,000; Toronto adds its own tax. Alberta has none.
What home price growth should I assume?
Be conservative. Over the long run Canadian prices have grown at roughly inflation plus a little; 3% a year is a common planning figure, but markets differ widely. Try your numbers at 0%, 3%, and 5% to see how much the answer depends on it.
Does it include strata fees and maintenance?
Yes. Strata or condo fees, property tax, home insurance, and maintenance (1% of the home's value a year by default) are all in the monthly cost of owning, and rise with inflation. Leaving them out is the most common way buy vs rent math goes wrong.
Is renting throwing money away?
Not in this math. When you rent, the money you didn't put into a down payment stays invested, and any monthly saving is invested too. Buying wins by building equity faster than those investments grow, which happens, but not always, and rarely in the first few years.
City estimates: Vancouver $1,075,900 composite benchmark (GVR, Sep 2026); Toronto $975,436 average price estimate (RE/MAX Fall 2026 outlook); Calgary $566,700 benchmark (CREB, Sep 2026); Ottawa $623,500 composite benchmark (Sep 2026); Edmonton $484,768 average price estimate (RE/MAX Fall 2026). Montreal's price and every city's rent are estimates. Treat each as a starting point, not a quote.
General information only, not financial, tax, or legal advice. Rules change; confirm CMHC premiums, land transfer tax, and amortization eligibility with a licensed mortgage professional before making an offer.