Rent or buy? Run the full math, not half of it
Start with what renters in your town actually pay, then compare it with owning a home: the monthly cost, the cash to close, and where you stand after you sell. Both sides get the same fair treatment.
Matthew Gizzie, REALTOR®, Keller Williams Realty Centres, Newmarket. I live in Uxbridge and work with buyers in Newmarket, Aurora and across York Region, and in Simcoe County communities including Bradford and Barrie.
Renting comes out ahead
Break-even: if you sell after 5 years, owning matches renting when home values grow 4.7% a year. You entered 3.0%.
Year 1, per month
| Mortgage payment | $3,079 |
| of which principal (you keep it) | $789 |
| of which interest | $2,290 |
| Property tax, insurance, condo fee | $500 |
| Maintenance reserve | $542 |
| Utilities | $325 |
| Rent, renter's insurance, utilities | $2,404 |
| Owning costs more per month | $2,041 |
Cash to buy
| Down payment | $65,000 |
| Ontario land transfer tax | $9,475 |
| First-time buyer refund | −$4,000 |
| 8% sales tax on CMHC premium | $1,544 |
| Legal, title, inspection, moving | $3,000 |
| Cash needed to close | $75,019 |
CMHC premium of $19,305 (3.30%) is added to your mortgage, for a total loan of $604,305.
Where you stand after 5 years
| Item | If you sell | If you keep |
|---|---|---|
| Home value | $753,528 | $753,528 |
| Mortgage still owing | −$551,261 | −$551,261 |
| Selling cost and legal | −$39,676 | $0 |
| Owner ends with | $162,591 | $202,267 |
| Renter's invested start-up cash | $91,273 | $91,273 |
| Renter's invested monthly savings | $132,118 | $132,118 |
| Renter ends with | $223,391 | $223,391 |
| Difference | Renting + $60,800 | Renting + $21,123 |
Money you don't get back over 5 years
Rent is a cost. So are mortgage interest, tax, insurance, upkeep, utilities, closing and selling. Principal isn't, because you keep it.
Monthly cost over time
Want this checked against your real numbers?
I'll run your income, savings and the homes you're looking at, and I can introduce you to a mortgage broker within 24 hours for a pre-approval.
If you pay this rent, what price matches it?
Worked out live from your inputs above (rate, down payment, amortization, costs). Property tax is scaled to each price at the same ratio as your input. The first column matches your monthly cash outlay. The second matches the money you don't get back, which is the fairer test.
| Rent /mo | Same monthly cash | Same cost, excluding principal |
|---|---|---|
| $1,800 | about $255,000 | about $320,000 |
| $2,200 | about $320,000 | about $400,000 |
| $2,600 | about $385,000 | about $480,000 |
| $3,000 | about $450,000 | about $565,000 |
| $3,500 | about $535,000 | about $665,000 |
At 4.59%, 10.0% down (or the minimum), 30 years, with renter's insurance and utilities of $225 added to the rent. Condo fee $0/mo. Round to the nearest $5,000.
What the calculator counts
A fair start
The buyer puts the down payment, land transfer tax and closing costs into the home. The renter keeps that cash invested instead. Nothing is counted as equity unless you would actually walk away with it.
Costs that rise on both sides
Rent rises at the rate you set. Property tax, insurance, upkeep and utilities rise too. A fixed mortgage payment stays the same, and the rate is held for the whole period you choose.
Two endings
"If you sell" takes off your selling cost and $2,000 legal. "If you keep the home" shows your equity without selling. Most owners stay longer than five years, so both views matter.
Mortgage payments use Canadian semi-annual compounding. CMHC insurance is added to the mortgage; the 8% Ontario sales tax on it is paid in cash at closing. Investment growth assumes a tax-free account such as a TFSA or FHSA, matching the tax-free gain on a principal residence. The first-time buyer programs (FHSA up to $40,000 and the Home Buyers' Plan up to $60,000 per person) change how you save, not the math here. See the first-time buyer guide.
Send me your scenario
I'll look at the numbers you entered, tell you what I'd change for the homes you're considering, and reply personally.
Renting vs. owning: common questions
Is it cheaper to rent or buy in York Region?
It depends on the rent you'd pay, the home you'd buy, how long you stay and how fast values grow. In the first year, owning usually costs more per month, because the mortgage payment includes principal you keep. The calculator above starts from average leases in your town and shows the home value growth you'd need for owning to break even if you sell.
How much can my landlord raise my rent in 2026?
Ontario's rent increase guideline for 2026 is 2.1%. Rent can go up once every 12 months with 90 days' written notice. Units first occupied for residential purposes after November 15, 2018 are exempt from the guideline, so increases there aren't capped.
How much do I need for a down payment in Ontario?
At least 5% of the first $500,000 and 10% of the portion from $500,000 up to $1.5 million. Homes at $1.5 million or more need 20% down. With under 20% down you pay CMHC mortgage insurance, which is added to the mortgage. In Ontario, the 8% sales tax on that premium is paid in cash at closing.
Can I get a 30-year amortization?
With under 20% down, 30 years is available to first-time buyers and to buyers of new builds, since December 15, 2024. It adds 0.20% to the CMHC premium. With 20% or more down, many lenders offer 30 years; it depends on the lender.
What closing costs should a buyer plan for?
Ontario land transfer tax, with a refund of up to $4,000 for first-time buyers. Add legal fees, title insurance, an inspection and moving, plus the sales tax on any CMHC premium. The calculator shows each line at your price. Homes in the City of Toronto also pay a municipal land transfer tax, which this calculator doesn't include.
Why doesn't the calculator count my whole down payment as a gain?
Because it was your money before you bought. The calculator gives the renter the same cash to invest, so the comparison only credits owning with what it actually adds: principal paid, growth in the home's value, and any monthly savings. Mortgage insurance isn't counted as equity, because it is a cost added to your loan.
Figures and program rules current as of October 19, 2026. Sources: HabiStat MLS® lease data, July to September 2026 · Ontario rent increase guideline · Ontario land transfer tax · CMHC mortgage loan insurance premiums · Finance Canada, mortgage reforms effective December 15, 2024.
Disclaimer: General information only, not legal, tax, financial or mortgage advice. Results are estimates that depend entirely on the assumptions you enter. Home values can fall, rents and rates can change, and investment returns are not guaranteed. Mortgage approval depends on the lender, the federal stress test and your finances. Rent figures are averages of leases recorded on MLS® and may include partial units; your rent may differ. Matthew Gizzie, REALTOR®, Keller Williams Realty Centres, Brokerage, independently owned and operated. Not intended to solicit buyers or sellers currently under contract.
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