Rent or buy
calculator.

How the estimate works

Buying: the down payment, BC property transfer tax (with the first-time home buyers' exemption if you tick it) and closing costs are paid up front. CMHC insurance is added to the mortgage when you put down less than 20%. Each month you pay the mortgage, property tax, maintenance, strata and insurance, and the home's value grows at the rate you choose. At the end, selling costs are taken off. Renting: the renter keeps the same up-front cash invested, and whichever side spends less each month invests the difference. The result compares what each would have after the years you plan to stay.

The rate stays the same for the whole period, investment returns are before any tax (as in a TFSA), and there is no capital gains tax on a principal residence. The stress test uses the higher of 5.25% or your rate plus 2 points, with housing costs at 39% of income.

Sources: Bank of Canada, rates on new household lending · Bank of Canada, posted rates · BC first-time home buyers' program. An estimate for general information, not financial advice.