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Rent vs Buy Calculator Canada
Free rent vs buy calculator for Canada: compare buying (mortgage, property tax, upkeep, land transfer tax, selling costs, home value growth) with renting and investing the difference, for example in a TFSA.
Buying
Renting
Renting comes out ahead by
$8,455
| Mortgage payment | $2,890.33 a month |
| Owner's net worth after 7 years | $332,089 |
| Renter's net worth after 7 years | $340,543 |
| Total spent owning | $347,665 |
| Total rent paid | $239,069 |
It compares what each would have at the end: the owner has the home's value minus the loan and selling costs; the renter invests the down payment and, each month, the difference between owning costs and rent. Gains on a principal residence are tax-free in Canada, like gains in a TFSA. Canadian mortgages compound semi-annually; this uses a simple monthly rate.
Without mortgage insurance or tax on investments outside a TFSA. Not legal, tax or financial advice. 🔒 Everything stays on your device.
📚 Official sources: FCAC: mortgages
We build every tool from the official rules and re-check them when they change. Always confirm with the official source before you rely on a result.
🛠️ Spotted a mistake or an out-of-date rule? Tell us
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Questions people ask
Is it better to rent or buy in Canada?+
It depends on how long you stay, rent compared with prices, mortgage rates and price growth. Buying usually needs 5+ years to beat renting because of land transfer tax and selling costs.
Is the gain on my home taxed?+
Not on your principal residence: the principal residence exemption makes it tax-free.