Rent vs buy calculator (Ontario)
Compare the long-run net worth of buying a home against renting and investing the difference, with your own rent, rate, appreciation and return assumptions.
Mortgage rules last reviewed: September 29, 2026
Most Ontario cities charge about 0.7%–1.7%. Toronto is about 0.75%.
What the money you don't spend on the home would earn if invested.
- Cash needed upfront to buy
- $174,475
- Monthly mortgage payment
- $3,682.30
- Home value after 10 years
- $1,075,133
- Mortgage balance left
- $470,562
- Buying: estimated net worth
- $550,814
- Renting: estimated net worth
- $555,047
For illustration only. Not a rate quote, approval or pre-qualification.
| Year | Buying net worth | Renting net worth |
|---|---|---|
| Year 1 | $156,303 | $207,527 |
| Year 2 | $193,958 | $241,600 |
| Year 3 | $233,019 | $276,727 |
| Year 4 | $273,542 | $312,940 |
| Year 5 | $315,584 | $350,275 |
| Year 6 | $359,208 | $388,766 |
| Year 7 | $404,475 | $428,451 |
| Year 8 | $451,453 | $469,366 |
| Year 9 | $500,208 | $511,552 |
| Year 10 | $550,814 | $555,047 |
How this is calculated
- Buying: upfront cash of $174,475 (down payment, Ontario land transfer tax with no first-time rebate, $2,000 legal fees).
- Owner costs each month: mortgage payment, property tax and maintenance on the home's current value, and home insurance. Month one is about $4,948.96 versus rent of $3,000.00.
- Renter invests the buyer's upfront cash on day one, plus each month whatever owning costs above rent. If rent is higher, the buyer invests the difference instead. Investments grow at 5.00% a year, compounded monthly, with no tax.
- Buyer's net worth = home value (grown at 3.00% a year) minus 5% selling costs, minus the mortgage balance, plus their investments.
- Rent grows once a year. Mortgage rate is held for the whole period. Taxes on investment gains, mortgage renewals at different rates and the principal-residence exemption details are not modelled.
- A simplified illustration, not financial advice: results depend heavily on the growth and return assumptions you choose.
Calculator disclaimer
Calculators are provided for general informational and illustrative purposes only.
Results are estimates and may not reflect lender-specific qualification requirements, mortgage-insurance premiums, taxes, fees, available products, payment calculations or other transaction costs.
Calculator results do not constitute:
- Mortgage approval
- Pre-approval
- A rate commitment
- A lending commitment
- Financial advice
- Tax advice
- Or legal advice
Mortgage rules, rates and lender requirements can change.
For advice about your specific circumstances, speak with the appropriate licensed professional.
But how does this apply to your business income?
This calculator estimates the numbers you entered. How a lender treats your salary, dividends or business income is a separate question, and it's the one the Mortgage Readiness Review looks at first.