Whether buying beats renting depends mostly on how long you stay, the gap between rent and the full cost of owning, and how fast prices and rents grow. Buying usually comes out ahead the longer you stay, because you build equity and the costs of buying and selling are spread over more years. Change the numbers below to see your break-even point.
How this comparison works
- The buyer pays the down payment, property transfer tax and legal fees, then the mortgage, property tax, strata fees, upkeep and insurance. At the end the home is sold, the mortgage is paid off and selling costs come off.
- The renter invests the money the buyer would have put down. Each month, whoever pays less invests the difference.
- The result is the money each person would have at the end. It is not a forecast; it shows how the choice changes with your assumptions.
Things the numbers can’t show
Owning gives you control over your home and stable payments for your mortgage term; renting gives you flexibility to move and no repair bills. If you might move within 3 to 5 years, the costs of buying and selling make renting more attractive. First-time buyers can also use an FHSA and the Home Buyers’ Plan; see the first-time buyer savings calculator.
Related: mortgage payment calculator · how much home can I afford? · area guides
Want help with your numbers?
Want to see what homes in your price range actually rent for and sell for? I can pull recent numbers for the area you like.
Muzaffar Manghat, REALTOR®, Sutton Premier Realty · Call or text 604-785-5555 · Send me a message
Sources
- Government of B.C.: Property transfer tax
- CMHC: Mortgage loan insurance premiums
- CMHC: Rental market data
This tool is general information, not financial, tax, mortgage or legal advice. Results are estimates; confirm your figures with your lender, your lawyer or notary and your accountant. This is not intended to solicit buyers or sellers currently under contract with a brokerage.
