Buy vs rent guides
52 plain-language guides covering every part of the buy vs rent decision in Canada, each with worked examples from the calculator.
Foundations: how buy vs rent works
What is buy vs rent?
Buy vs rent compares owning a Canadian home with renting a similar one and investing the difference. Learn what is counted, what is not, and how to read it.
Read the guide →foundationsHow to decide between buying and renting
A practical buy vs rent framework for Canadians
Read the guide →foundationsThe 5% rule for buy vs rent
The 5% rule is a quick buy vs rent screen that compares annual rent with 5% of a home's price. See how it works, where it breaks, and how to test it.
Read the guide →foundationsPrice-to-rent ratio, explained
The price-to-rent ratio divides a home's price by 12 months of rent. Learn the formula, how to read it, and why it only helps with a buy vs rent decision in context.
Read the guide →foundationsBuy vs rent break-even, explained
The buy vs rent break-even is the point where owning's net worth overtakes renting's. See a worked example year by year and what moves it earlier or later.
Read the guide →foundationsThe opportunity cost of a down payment
A down payment is cash that could have been invested elsewhere. See how that opportunity cost shapes a buy vs rent comparison, with worked Canadian examples.
Read the guide →foundationsRent and invest the difference in a buy vs rent comparison
'Rent and invest the difference' is the heart of a fair buy vs rent test. See how the renter's portfolio grows, what it assumes, and when it beats owning.
Read the guide →foundationsForced savings and home equity
A mortgage turns part of every payment into equity. See how forced savings and home equity work in a buy vs rent comparison, and where the idea falls short.
Read the guide →foundationsLeverage in buy vs rent
A mortgage lets you control a large asset with a small amount of cash. Learn how leverage works in a buy vs rent decision, with worked Canadian examples.
Read the guide →foundationsCommon buy vs rent mistakes
Seven buy vs rent mistakes Canadians often make, from comparing mortgage payments to rent to ignoring renewal rates, each tested with a worked example.
Read the guide →foundationsSeven buy vs rent myths, tested
Is rent really wasted money? Does buying always win? Seven common buy vs rent myths for Canadians, checked against worked examples and current rules.
Read the guide →foundationsA buy vs rent checklist for Canadians
Use this buy vs rent checklist to gather every number that matters, stress-test your assumptions and read the result, with a worked $600,000 Canadian example.
Read the guide →Assumptions: prices, rents, rates and returns
Home price appreciation assumptions in a buy vs rent comparison
Home price growth is the biggest swing factor in a buy vs rent comparison. See how 1%, 2%, 3.5% and 5% assumptions change the result and the break-even.
Read the guide →assumptionsRent growth assumptions in a buy vs rent comparison
How fast your rent rises changes the buy vs rent answer. See results at 0% to 6% yearly rent growth, the break-even rent, and how provincial rules fit in.
Read the guide →assumptionsInvestment return assumptions in buy vs rent
A buy vs rent comparison assumes the renter invests the savings. See how return assumptions from 2% to 9% change the result, the break-even return and tax drag.
Read the guide →assumptionsInflation and buy vs rent: what actually changes
Inflation touches a buy vs rent comparison in three ways. See what a 1% to 4% inflation assumption does on its own and why bundled assumptions matter more.
Read the guide →assumptionsReal vs nominal dollars in a buy vs rent result
A buy vs rent result of $400,000 in ten years is not worth $400,000 today. Learn the difference between nominal and real dollars and how to read both.
Read the guide →assumptionsInterest rates and buy vs rent
See how a mortgage rate from 3% to 9% changes the monthly payment, the 10-year result, the break-even home price growth and the break-even rent in a buy vs rent test.
Read the guide →assumptionsMortgage renewal risk in a buy vs rent decision
A mortgage rate is only locked for one term. See how a 3.5% to 7.5% renewal rate changes a buy vs rent result, the monthly payment shock and the break-even renewal.
Read the guide →assumptionsBuy vs rent in a falling housing market
What if prices fall right after you buy? A worked buy vs rent stress test with a two-year drop shows equity, break-even and why timing and horizon matter.
Read the guide →assumptionsBuy vs rent in a high-rate market
When mortgage rates are high, buy vs rent depends on a short list of conditions. See a 7.5% rate example, what could flip it, and how a later rate drop changes things.
Read the guide →assumptionsTime horizon in buy vs rent: how long you stay
How long you plan to stay often decides a buy vs rent comparison. See results from 1 to 25 years, the effect of selling costs and why long stays do not always win.
Read the guide →assumptionsScenario analysis for a buy vs rent decision
Instead of one forecast, run three coherent stories. A worked buy vs rent scenario analysis shows a cautious, middle and favourable case and how stay length changes them.
Read the guide →assumptionsSensitivity analysis for buy vs rent: which inputs matter most
Change one input at a time and see which ones move a buy vs rent result most. A ranked sensitivity table covers appreciation, rate, rent, returns, costs and horizon.
Read the guide →Costs of owning and renting
The hidden costs of owning a home in a buy vs rent decision
Mortgage payments are only part of owning. See property tax, insurance, repairs, utilities, closing and selling costs and how each shifts a buy vs rent result.
Read the guide →costsThe hidden costs of renting in a buy vs rent comparison
Renting looks simple, but rent increases, moves, tenant insurance and missed saving habits all matter. See how they change a Canadian buy vs rent result.
Read the guide →costsClosing costs and the buy vs rent decision
Closing costs can add thousands to the price of buying and push back the buy vs rent break-even. See Alberta, Ontario, BC and Manitoba examples worked through.
Read the guide →costsLand transfer tax and buy vs rent
Land transfer tax is a one-time cost that can be near zero in Alberta or tens of thousands in Ontario and BC. See how it shifts a buy vs rent break-even.
Read the guide →costsProperty tax and the buy vs rent decision
Property tax is a yearly cost that rises with home value and is not deductible on your own home. See how different rates change a Canadian buy vs rent result.
Read the guide →costsMaintenance and repair costs in a buy vs rent comparison
Upkeep is the most uncertain cost of owning and can swing a buy vs rent result by tens of thousands. See worked examples at 0.5%, 1%, 1.5% and 2% of value.
Read the guide →costsCondo fees and special assessments in a buy vs rent comparison
A condo fee replaces some upkeep, but it grows and a special assessment can arrive without warning. See worked buy vs rent examples with fees from $400 to $1,000.
Read the guide →costsHome insurance vs tenant insurance: the buy vs rent view
Home insurance and tenant insurance cover different things and cost different amounts. See how premiums enter a Canadian buy vs rent comparison with worked numbers.
Read the guide →costsSelling costs and the buy vs rent decision
Commission, legal fees and mortgage penalties can take about 4.5% of a home’s value on sale. See how selling costs change a buy vs rent result at 2 to 20 years.
Read the guide →Mortgages and financing
The mortgage stress test and buy vs rent
The mortgage stress test limits how much you can borrow, not what you pay. See worked qualifying-rate examples and how rate shocks change a buy vs rent result.
Read the guide →financingCMHC mortgage insurance and the buy vs rent decision
Under 20% down you pay a mortgage default insurance premium, usually added to the loan. See premiums for 5%, 10% and 15% down and how they shift a buy vs rent result.
Read the guide →financingMortgage types and their effect on buy vs rent
Fixed or variable, five-year or three-year term, 25 or 30 years
Read the guide →Taxes and programs
Down payment sources: FHSA, RRSP and TFSA in a buy vs rent plan
How the FHSA, the RRSP Home Buyers’ Plan and the TFSA can fund a down payment, why renters can use them too, and how a bigger down payment changes buy vs rent.
Read the guide →tax-rulesThe principal residence exemption and taxes in buy vs rent
The gain on a principal residence is generally tax-free, but mortgage interest and property tax are not deductible. See how taxes shape a Canadian buy vs rent result.
Read the guide →Renting: rules and risks
Rent control by province and your buy vs rent decision
How rent increase rules differ across Canada, and how a cap on rent growth changes a buy vs rent comparison. Includes Ontario, BC and Alberta examples.
Read the guide →rentingRenting risks and rights in a buy vs rent decision
What renting can and cannot protect you from, how tenant rights vary by province, and how those risks fit into a fair buy vs rent comparison.
Read the guide →rentingThe flexibility value in a buy vs rent decision
Flexibility is the quiet variable in every buy vs rent comparison. See how time horizon, exit costs and moving frequency change the result with worked numbers.
Read the guide →Buy vs rent for your situation
Buy vs rent for first-time buyers
A buy vs rent walk-through for first-time buyers
Read the guide →lifeBuy vs rent for couples and families
A buy vs rent look at couples and growing families
Read the guide →lifeBuy vs rent for singles
Buy vs rent for people buying on one income
Read the guide →lifeBuy vs rent for newcomers to Canada
A buy vs rent guide for people new to Canada
Read the guide →lifeBuy vs rent when you are self-employed
A buy vs rent guide for self-employed Canadians
Read the guide →lifeBuy vs rent for retirees and downsizers
Buy vs rent for retirees and downsizers
Read the guide →lifeBuy vs rent with a rental suite
How a basement apartment or secondary suite changes a buy vs rent comparison
Read the guide →lifeCondo vs house in a buy vs rent decision
Comparing a condo and a house in a buy vs rent decision
Read the guide →lifeNew build vs resale in a buy vs rent decision
How buying a new build or a resale home changes a buy vs rent comparison
Read the guide →lifeBuy vs rent when you may relocate or work remotely
Moving for work, or working from anywhere? See how a short or uncertain stay changes the buy vs rent result, with worked numbers on horizon and moving costs.
Read the guide →lifeBuy vs rent with roommates or shared housing
A buy vs rent look at roommates and shared housing
Read the guide →