Take an $850,000 home with $170,000 down at 4.6%, set against $3,200 in rent for a similar place. Over 10 years, buying leaves you about $27,700 ahead. Over 5 years renting wins by about $27,000, and over 20 years buying leads by roughly $189,000. Time matters more than anything else here.
What the comparison counts
Owning costs more than the mortgage. There’s property tax, upkeep, condo fees, and the costs of buying and selling. Renting costs the rent alone. The calculator adds up every monthly cost on both sides and then tracks what each choice leaves you with at the end.
Where the renter’s money goes
A renter puts no down payment into a house. That money, plus the buying costs avoided, goes into investments. If owning costs more each month than renting, the renter invests the difference too. The return you enter sets how fast that pot grows.
What the owner ends up with
Owner wealth is the home value minus the mortgage balance minus selling costs. In the model prices rise every year and each payment shrinks the balance. Selling costs of about 5% cover commission, HST on it and legal fees.
Why the answer changes with time
Buying opens with a big hit from transfer tax and fees, and it takes years of price growth and repaid principal to earn that back. In the default case buying pulls ahead in year eight. Might you move in three or four years? Renting usually wins.
The inputs that matter most
Price growth and investment return move the result the most. Set price growth to 1% and investment return to 7% and renting looks far better. Reverse them and buying wins by a wide margin. Try both extremes before deciding.
Ontario rent rules and Toronto costs
Rent in most Ontario homes can rise only by the yearly guideline, 2.1% for 2026, and the model uses that as its default. Newer units can rise faster, so use a higher rate for a building first occupied after 2018. Toronto adds a municipal land transfer tax on top of the provincial one, which raises the cost of buying. First-time buyers get a rebate on both. Condo fees can be high, so enter your building’s actual amount. A first home savings account can help the buying case, since contributions are deductible.
What the numbers leave out
Owning brings stability along with the risk of a costly repair. Renting brings flexibility, though a landlord can sell the building. Neither has a dollar figure, but both count. Treat the result as one input rather than the final answer.
Reading the table
For each year the table shows wealth under both choices. Watch where the two lines cross, because that is the break-even point. A crossing after the years you plan to stay favours renting. An early crossing gives buying the stronger case.
Where to go next
Check how much you could borrow with the mortgage affordability calculator and the cash needed with the closing costs calculator. Save for it in the FHSA calculator. Compare your budget in the Toronto cost of living calculator.
Frequently asked questions
Is it cheaper to rent or buy in Toronto?
It depends on how long you stay. With the default numbers, renting wins at 5 years and buying wins at 10.
How long do I need to own to come out ahead?
In the default case, about eight years.
Why does the renter invest the down payment?
Because that money is free for other uses when you do not buy.
What return should I use?
Use a rate you could expect after fees, often between 4% and 6% a year.
Are selling costs included?
Yes. The default is 5% of the home value.
Does the calculator include land transfer tax?
Yes, through the buying costs field. Use the land transfer tax calculator for an exact figure.
Sources and updates
Last reviewed: . Full disclaimer. How we build calculators. Editorial policy.
Estimate only. This calculator gives general information for planning. It is not tax, legal or financial advice, and it is not affiliated with the City of Toronto, MPAC or the Canada Revenue Agency. Results depend on the numbers you enter and may differ from official amounts. Check official sources or a qualified professional before you decide.