Buying a home versus renting and investing the difference. Start with how long you'd stay.
We'll calculate the mortgage payment for you, including default insurance if the down payment is under 20%.
blank = 25 years
the yearly amount, often ~1% of the home's value
e.g. furnace, flooring, paint, plumbing, a rough yearly total
blank = 3%
The rent you'd pay, and what you'd earn investing the money you don't tie up in a home. Rent is held flat over the term.
blank = 5%, what you'd earn investing the difference
| Buy | Rent | |
|---|---|---|
| Mortgage payment (P&I) | — | — |
| Property tax | — | — |
| Home upkeep | — | — |
| Rent | — | — |
| Total out each month | — | — |
| After your stay | Buy | Rent |
|---|---|---|
| Home value | — | — |
| − Mortgage still owed | — | — |
| − Selling costs (~5%) | — | — |
| Down payment invested | — | — |
| Monthly difference invested | — | — |
| + Investment growth | — | — |
| Total rent paid | — | — |
| Mortgage interest paid | — | — |
| Net worth | — | — |
Estimates only, not financial advice. The mortgage payment is calculated with Canadian semi-annual compounding and CMHC-style default insurance under 20% down; a client's real payment can differ with their exact rate, term and qualification. Buyer net worth = home value − mortgage owed − ~5% selling costs. Renter invests the down payment plus each month's difference between owning and renting, at the return you set (rent held flat). A principal residence's gain is tax-free in Canada while investment gains may be taxable, a point in buying's favour.
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Let's weigh renting against buying with your real numbers, then find the mortgage that makes owning make sense, at no cost.