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Rent or buy? See the real difference

Renting isn't throwing money away, and buying isn't always the win people assume. See the money leaving each account every month, side by side, mortgage, property tax and upkeep versus rent, with the difference invested. Then compare your net worth over time, and find the break-even year.

The honest way to compare renting and buying

The old line that "rent is throwing money away" ignores half the picture. Owning has costs a renter never pays: property tax, upkeep, mortgage interest, and realtor fees when you sell. The fair question isn't "which has a monthly payment" but which leaves you wealthier after the years you plan to stay, once you count home appreciation and the equity you build against what a renter could earn by investing the down payment and the monthly difference instead.

This calculator makes the trade-off concrete. It shows what leaves your account each month under each path, invests the renter's surplus (the down payment plus the monthly gap between owning and renting), then tracks net worth year by year. Three things tip the answer: how long you stay (buying usually wins the longer you hold, as selling costs spread over more years), home appreciation vs investment returns (if markets outpace housing, renting and investing can win), and the monthly gap between rent and ownership costs (a big gap, invested, adds up for the renter). Thinking of buying? See what you qualify for with the pre-qualification calculator and what it costs to close with the land transfer tax calculator.

Good to know

Rent vs buy FAQs

Is renting really throwing money away?
Not necessarily. Renters avoid property tax, upkeep, mortgage interest and selling costs, and can invest their down payment plus the monthly difference. Over short stays or in expensive markets, renting and investing can beat buying. Over longer holds, buying usually wins.
How many years until buying pays off?
It varies, but the longer you stay, the more buying tends to win, because the large upfront and selling costs are spread over more years and more equity is built. This calculator shows the break-even year where buying overtakes renting.
Why does the renter's investment return matter?
A renter can invest the down payment and any monthly savings instead of tying it up in a home. If those investments grow faster than the home appreciates, renting can come out ahead. That's why the comparison counts both.
Should I buy if I might move soon?
If you may move within a few years, buying often doesn't pay off once you include land transfer tax, legal fees and realtor commissions. The calculator shows this clearly when you set a short stay.

Ready to make the move make sense?

We help you weigh renting against buying with real numbers, then find the mortgage that makes owning work, at no cost.

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