Rent vs buy
Enter your rent and a home price to see the year owning starts to cost less than renting.
Your numbers
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When owning costs less
Year 8
Owning costs less from year 8. By then, rent totals $288,388 and owning costs $275,271 after equity.
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These are guesses, not forecasts. Try a few.
Net cost of owning is what you spent minus the equity you keep after selling.
| Year | Rent paid | Owning, net | Cheaper |
|---|---|---|---|
| 1 | $33,600 | $80,364 | Renting |
| 2 | $67,872 | $112,662 | Renting |
| 3 | $102,829 | $143,585 | Renting |
| 5 | $174,856 | $201,053 | Renting |
| 7 | $249,792 | $252,228 | Renting |
| 10 | $367,911 | $315,869 | Owning |
| 15 | $581,059 | $381,108 | Owning |
| 20 | $816,392 | $383,848 | Owning |
| 25 | $1,076,218 | $307,507 | Owning |
Closing costs, interest, property tax, strata and upkeep. Principal comes back as equity.
Every month of rent, with the yearly increase you set.
Your down payment could earn a return elsewhere. That counts against owning.
An estimate, not financial advice. Mortgage insurance is not counted.
See what your rent could buy: Rent vs mortgage
Written and maintained by Ray Rasouli, REALTOR®, licensed in British Columbia and founder of Relta Real Estate.
Source: Standard Canadian mortgage math.