Rent vs Buy

If you can rent a similar home for less than per month, then renting is better.
Buying is better, even if you could rent for free.
If you can rent a similar
home for less than ...
Buying is better, even if
you could rent for free.
... then renting is better.
The home pays for itself.
Costs after
Initial costs
Recurring costs
Opportunity costs
Net proceeds
How to Read the Charts Charts that are relatively flat indicate factors that are not particularly important to the outcome. Conversely, the factors that have steep slopes have a large impact. Disclaimer: The calculator and all the calculations are for illustrative purposes only and may not reflect the actual numbers for any mortgage or investment. You should not rely on the numbers calculated in this calculator as an indication of your financial needs and we recommend that you seek out your own financial, investment, tax, legal or accounting advice. The information herein shall not be considered as investment advice or as a recommendation to enter into any transaction.  
Home Price
This Rent vs Buy calculator gets your inputs and calculated the approx break even point rent. Which if you can rent a place EQUAL or LESS than this rent, it's better continue renting. If you can not find a place with that rent amount, you need to consider the difference ($$) between the actual rent you pay right now, and the break even rent calculated in this Renting versus Buying calculator. If you want to compare renting versus buying your own home, you need to compare apple with apple. For example, if you are a person who currently rents a bachelor studio or a one bedroom apartment, you need to use the average price of a similar property. You might wonder how to find out an average price of a property in your area? Contact a Top Toronto real estate agent or a REALTOR®  in your area for details about the prices,  then go to the next step in the calculator.
How Long Do You Plan To Hold On to Your Property
When comparing renting versus buying a home, you need to consider that once you purchase a home, there are some fixed costs at the beginning, which we’ll get to them down below. Those fixed costs will spread out over the years that you own the property. If you plan to keep your property 5 years or 10 years or even more, choose any number that is relevant to your situation.
The Mortgage Calculations
Mortgage Payments are the single biggest payments when you purchase a home, and to decide whether to rent or to buy. This Rent vs Buy calculator is based on traditional Canadian mortgages. Each mortgage payment consists of principal and interest. In order to compare renting to buying, you need to consider your mortgage payments into account, especially the amount of interest that you pay. Mortgage payments are the single biggest monthly payment that affects the whole rent versus buy comparison. While interest goes to the bank, the principal portion of your mortgage will be like a savings and will pay off the original loan amount. Literally you’re adding up equity in your home by paying principal. First you choose a mortgage interest rate. To get your mortgage rate you can contact a mortgage broker in your area. * If you pay less than 20% down payment you’ll have to insure your mortgage through companies such as CMHC, then you need to add the monthly insurance premium too.
Capital Gain, Future Value of Home and Other Investments
A big part of gains that you might have, other than paying principal part of your mortgage, could be Capital gain. If you look at the Real Estate Market Trends in Toronto, you’ll see in the long term the real estate market was moving up by an approx average over 6% annually since the 1990s, regardless of fluctuations in the short terms. As of now that I’m writing this article, Capital Gains on your principal residence is tax free. That might change in the future, thus consult with your accountant about those or any tax implications that you might have.
By the time that I’m writing this, in Canada, capital gain on your principal residence is tax free ( this might change at any point,  consult with your accountant ). You can put annual approx property taxes below. To get the annual property tax, go to your City’s website. In the city of Toronto, you can use their property tax calculator online and find out how much your annual property tax would be. Consult with your tax advisor to get information about marginal and capital gain taxes then use it in this calculator if applicable to you.
Closing Costs
In this Rent vs Buy calculator you can input the closing cost as a percentage of your home price. Closing costs are the costs at the time of purchase and also the costs at the time of sale. Closings costs can be Land Transfer Tax to Title Insurance and Solicitor fees for the purchase. Closing costs on the time of sale can be the mortgage discharge, real estate, and solicitor fees. In this Rent vs Buy calculator you can input the costs as a percentage of your home price which will make it easier for you regardless of the price of a home you choose.
Maintenance Costs of a Home and other costs of Home Ownership
Being a homeowner has indirect costs that you might not pay right off the bat. In order to find out is renting better or buying, this rent vs. buy calculator even calculates the costs that might happen down the road. Below you can add any cost that you want and see the result reflected on the overall calculation.
Additional Renting Costs
If you are a tenant you might have some additional costs as well, which you can input here. Additional costs mainly include the Tenant Insurance, that covers your liabilities and contents and many tenants pay for it regardless.