This Calculator can be a tool to help you decide the old age question of renting versus buying a home. The answer is not always evident because it depends on each individual’s (or household) needs, capabilities and investment appetite.

For most Canadians owning a home is thought of as a sound financial decision and investment, however high home price appreciation doesn’t automatically mean that owning your place is the right approach. There maybe hidden carrying costs of home ownership and other ways that your money could grow faster in other forms of investments. So it’s always a good question to ask yourself if your money could grow in other ways. 

Depending on the mortgage rates and housing appreciation rates, it could be more profitable for you to take on a bigger mortgage or for longer amortization periods IF you can make more by investing your money in other places. However as mortgage rates fluctuate it’s important to remember this trend of low mortgage rates may not last forever, which should prompt you to re-evaluate how to allocate your funds.

Other useful calculators: Mortgage Affordability Calculator & Mortgage Payment Calculator

Disclaimer: The above Rent vs Buy calculator is for demonstration purposes only and may not reflect actual numbers for your mortgage. The Calculator assumes constant interest rate throughout the amortization period, interest calculated semi-annually not in advance for fixed interest rate mortgages, and other assumptions that maybe different than what your bank or broker offers you. Mortgage prepayments (e.g. additional payments) may be subject to a prepayment charge which is not reflected by the calculator.