Rent vs Buy

Time horizon

Years Months

Renting

Monthly rent ($) Annual rent increase (%) Monthly utilities ($) Monthly insurance ($) Monthly other ($) Savings interest rate (%) What the down-payment cash earns while renting

Buying — the house

House price ($) Down payment ($) Mortgage interest rate (%) Amortization (years) House appreciation rate (%) Monthly basement rental income ($) Net (after tax). 0 if no rental.

Buying — monthly costs

Property tax ($) Maintenance ($) Utilities ($) Insurance ($) Other ($)

Buying — closing costs (one-time)

First-time buyer (gets LTT rebate up to $4,000) Legal fees ($) Title insurance ($) Home inspection ($) Appraisal fee ($) Property tax adjustment ($)

Ontario LTT (with first-time buyer rebate) and CMHC PST are calculated automatically.

Selling — closing costs (one-time)

Realtor commission (%) Legal fees ($) Mortgage discharge penalty ($) Mortgage discharge fee ($) Other selling costs ($) Principal residence (no capital gains tax)

Time horizon

Renting

Buying — the house

Buying — monthly costs

Buying — closing costs (one-time)

Selling — closing costs (one-time)

Renting

Buying

Wealth over time

Monthly waste over time

Appreciation rate × time horizon