TMC Greater Simcoe

Rent vs Buy Calculator

Two paths over the same number of years. Renting builds an investment portfolio out of what would have been a down payment. Buying builds equity through principal paydown plus appreciation, net of carrying costs and selling costs at the end. Honest head-to-head, on your numbers.

The math is one input. The non-financial reasons (stability, family, mobility, time) are usually the bigger story. Treat the numbers as a starting point for the conversation, not the answer. Full disclaimer.

Renting

$
%

Buying

$
$
$

LTT, legal, inspections

%
$
$
%

Industry rule of thumb: 1% per year

$

0 if not a condo

Assumptions

%

Long-term Canadian average ~3%

%

If down payment stays invested instead

%

Realtor + legal + adjustments

The math is one input. The non-financial reasons (life stage, mobility, stability, family) are usually the bigger story. This is a planning tool, not a recommendation.

Net position over 10 years

Buying ahead by $106,916

Net cost = total out-of-pocket minus equity built (buying) or investment growth on the down payment (renting). Lower number wins on the math alone.

Renting

Total rent paid
$322,657
Investment portfolio value
$146,850
Net cost
$257,808

Buying

Mortgage payments
$430,700
Carry costs (tax, insurance, maintenance, condo)
$140,247
Net equity at sale
$432,055
Net cost
$150,892

Net cost, year by year

The crossover point (if any) is when one path becomes financially better than the other.

What this calculator misses

The result depends heavily on the assumptions: home appreciation rate, alternative investment return, how long you actually stay. A 1% swing in either appreciation or alternative return can flip the answer. The calculator uses long-term averages; your file uses the next ten years, which the long-term average doesn't guarantee. Two clients with the same inputs but different life timelines often land on different sides.

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