This calculator compares two net worth positions at the end of a 5- to 30-year horizon.
Buy side: the property’s value, growing at the chosen appreciation rate, minus the mortgage balance. The monthly cost of owning includes the payment (CMHC premium included below a 20% down payment), the property tax you enter and maintenance set at 1% of the price per year.
Rent side: the down payment is invested at the chosen return. Each month, the gap between the cost of owning and the rent is added to it; if the rent exceeds that cost, the gap is withdrawn. Rent rises once a year at the rate you enter.
The assumptions that decide. Four numbers weigh the most: appreciation, investment return, rent increase and mortgage rate. The preloaded values (price $550,000, down payment $110,000, rate 4.99% over 25 years, property tax $275, rent $2,300, appreciation 4%, return 6%, rent increase 3%) are a starting point, not a forecast.
Calculator results after 20 years, changing one value at a time:
| Changed assumption | Net worth, buy | Wealth, rent |
|---|---|---|
| None (4% appreciation) | $1,069,443 | $520,533 |
| 2% appreciation | $681,596 | $520,533 |
| 1% appreciation | $535,430 | $520,533 |
| 8% return | $1,069,443 | $751,796 |
| 4% return | $1,069,443 | $356,047 |
One point of appreciation moves the result by more than $100,000 over 20 years. Test a cautious value and an optimistic one, then look in the yearly table for the year the winner changes.
Limits. The calculation does not deduct buying costs (welcome tax, notary, inspection), selling costs at the end of the horizon, home insurance or tax on investment returns. Property tax and maintenance stay fixed in dollars for the whole horizon, while rent rises every year. Most of these choices favour buying, especially over a short horizon. The result compares two scenarios; it does not predict the market.
For the detailed method and Greater Montreal figures: renting or buying in Greater Montreal.
Frequently asked questions
Is it better to rent or buy in Quebec?
What does net worth mean in the rent vs. buy calculator?
What home appreciation rate should I use?
Does the calculator include buying and selling costs?
Why does the calculator assume the renter invests the difference?
Where these figures come from
The calculators on this site apply the Quebec rules in force: transfer duty brackets by municipality, CMHC insurance premiums based on the down payment, the legal minimum down payment, the GDS and TDS ratios Canadian lenders use, and the stress test rate. The calculation runs entirely in your browser: no amount you enter is sent anywhere or stored.
What a calculator cannot do
The result is an estimate, not a mortgage pre-approval, not a certified appraisal and not tax advice. A lender decides on your full credit file, your proof of income and the nature of the property. Scales and rates change during the year. Check any figure that matters with your lender, your notary or your accountant before committing. The limits of these tools are set out in the terms of use.
