Rent vs buy in Canada
The question is 30-year net worth, not this month’s cash flow. The model uses Canadian mortgage math on the buy side and stated rent growth / investing return on the rent side. Assumptions are listed under the results. Change them before you treat the winner as a decision.
Rules verified: 2026-07-13 · Methodology
| Year | Buyer net worth | Renter net worth |
|---|---|---|
| Year 10 | $350,286 | $341,681 |
| Year 20 | $740,937 | $663,694 |
| Year 30 | $1,152,950 | $1,134,173 |
$500k buy vs $2,200 rent — default assumptions, 20% down. Same engine as the form below.
Scenario Inputs
Market Assumptions
After 25 Years, Buying Wins by
$118,358
Buying breaks even at year 9
Buyer equity is net of $52,344 selling costs
Net Worth Projection
$994,545
$876,187
$2,167.00
P+I only
True Cost of Buying — What People Forget
Upfront Cash Required
$117,500
$100,000 down + $17,500 closing
Year 1 Ownership
$11,500
Maintenance + tax + insurance
Selling Costs at Exit
$52,344
5% of final home value
Monthly All-In
$3,125.00
Mortgage + ownership overhead
This projection includes closing costs, maintenance, and ~5% selling costs ($52,344 at exit). Open Ownership Costs on the left to set your local property tax and maintenance.
Year-by-year net worth projection
Buyer equity is net of 5% selling costs. Renter portfolio is liquid.
| Year | Buyer net worth | Renter net worth |
|---|---|---|
| 0 | $100,000 | $117,500 |
| 1 | $98,428 | $136,534 |
| 2 | $122,682 | $156,243 |
| 3 | $147,791 | $176,654 |
| 4 | $173,787 | $197,794 |
| 5 | $200,702 | $219,693 |
| 6 | $228,569 | $242,381 |
| 7 | $257,425 | $265,889 |
| 8 | $287,304 | $290,252 |
| 9 | $318,245 | $315,504 |
| 10 | $350,286 | $341,681 |
| 11 | $383,468 | $368,822 |
- Home price: $500,000; down payment: $100,000
- Mortgage rate: 4.29% (semi-annual compounding, Canadian style)
- Starting monthly rent: $2,200.00
- Home appreciation: 3%/yr · Rent inflation: 3%/yr
- Renter investment return: 6%/yr
- Closing costs: 3.5% · Selling costs: 5% · Maintenance: 1%/yr · Property tax: 1%/yr · Insurance: $1,500/yr
- Projection horizon: 25 years
Rules verified: 2026-07-13 · Methodology
Frequently asked questions
How does this rent vs buy comparison work?
It projects year-by-year net worth for a buyer (home equity after selling costs) versus a renter who invests the same upfront cash and monthly cost difference. Defaults include appreciation, rent inflation, investment return, maintenance, property tax, and insurance.
Why does the renter start with more cash invested?
The model assumes the renter invests the full amount the buyer spends at closing (down payment plus closing costs). That levels the playing field on capital committed up front.
Should I buy just because the model says buyer wins?
No. Lifestyle, job mobility, local prices, and risk tolerance matter as much as the spreadsheet. Treat the projection as a scenario tool — stress-test lower appreciation or higher rates before deciding.
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