Could renting or buying leave me ahead?

It depends on how long you expect to stay, local home prices and rents, mortgage rates, ownership costs, expected investment returns and your tolerance for risk. A rent-vs-buy calculator compares the long-term financial effect of both choices instead of assuming that buying is always better.

There is no universal break-even period. Transaction costs, land transfer taxes, mortgage interest, maintenance and the rate of home-price appreciation can make the break-even point much shorter or longer in different markets.

Renting can have a lower monthly cash cost in some Canadian markets, especially where home prices are high relative to rents. Buying may build equity over time, but owners also pay interest, property taxes, maintenance and transaction costs that renters do not pay directly.

A useful comparison should include rent, rent increases, purchase price, down payment, mortgage payments, property taxes, maintenance, insurance, closing and selling costs, expected home appreciation and the potential return on money that remains invested if you rent.

It should. Home-price growth can strongly affect the outcome, but it is an assumption rather than a guarantee, so the best calculator lets you test conservative, moderate and higher appreciation scenarios.