Planning
Ontario Rent vs Buy
Renting and buying can have very different costs depending on the Ontario community, property and time period. Enter assumptions that fit the home and location you are considering.
Selling costs are not included. If the home were sold at the end of the comparison period, those costs would reduce the homeowner's final amount.
Uses Canadian semi-annual compounding and the costs you enter. The renter invests the down payment plus the land transfer tax payable at closing, and any monthly amount by which owning costs more than renting. If owning costs less in a month, that saving is invested on the buying side instead, so neither side invests a negative amount. Property tax at 1.0% of value per year, maintenance at 1.0% of value per year, home insurance of $150 per month and condo fees of $0 are editable starting assumptions only, not Ontario averages or forecasts. Home value change, rent increases and investment returns are assumptions you set, not forecasts. Selling costs, taxes on investment gains and closing costs other than land transfer tax are not modelled.
Would you like help with these numbers?
Calculators use general assumptions. Athena can review your numbers and explain lender rules, qualification questions or options the estimate may not cover.
What this calculator helps you explore
How renting and investing the difference compares with buying and building equity, using cost assumptions that fit the Ontario community and property you are considering.
What the estimate considers
- Purchase price, down payment, rate and amortization
- Current rent and the yearly rent increase you enter
- Property taxes, condo fees, maintenance and home insurance you enter
- Land transfer tax, including Toronto municipal tax when Toronto is selected
- Home value change and investment return assumptions you set
- Investing any monthly difference between owning and renting on whichever side has money left over
What it may not capture
- Selling costs and other closing costs beyond land transfer tax
- Tax on investment gains
- Vacancy, a rent negotiation or a move partway through the comparison period
- Utilities and other costs that differ between renting and owning
A practical example
A condo in a smaller Ontario city and a detached home in Toronto can produce opposite answers. Enter the local property tax bill, condo fees and rent for the specific home, then run a cautious case as well as an optimistic one.
Assumptions and sources
- Canadian semi-annual compounding on the mortgage
- The renter invests the down payment plus land transfer tax, and any monthly amount by which owning costs more than renting
- Home value change, rent increases, maintenance costs and investment returns are adjustable assumptions, not forecasts
Content placeholder for Athena: Confirm the default property tax, maintenance and insurance figures shown as starting values so they are reasonable for a typical Ontario property.
Last reviewed: pending Athena's review