Rent versus buy
Is buying better than renting over ten years?
Buying costs more up front and builds equity. Renting costs less and leaves money to invest. This runs both side by side, month by month, and finds the year buying pulls ahead.
The rate you were quoted. The first number shown is only an example.
You have never owned a home anywhere, and you will live in this one.
Ontario caps yearly increases for most units at 2.5%. The guideline is 2.1% for 2026 and 1.9% for 2027. Units first lived in after November 15, 2018 have no cap.
Buying pulls ahead in
Year 10
After 10 years: Buying leaves $5,670 more.
Cash to buy on day one
$166,684
Monthly mortgage
$3,320.84
What each choice leaves you, year by year
| Year | Buying | Renting |
|---|---|---|
| 1 | $140,530 | $195,831 |
| 2 | $176,374 | $225,974 |
| 3 | $213,511 | $257,156 |
| 4 | $251,989 | $289,417 |
| 5 | $291,858 | $322,804 |
| 6 | $333,171 | $357,361 |
| 7 | $375,982 | $393,139 |
| 8 | $420,348 | $430,188 |
| 9 | $466,329 | $468,561 |
| 10 | $513,985 | $508,314 |
Whoever pays less each month invests the difference. Buying counts the cost of selling at the end. Investment growth is treated as tax free, as in a TFSA or FHSA.
An estimate to plan with, not advice. Your lender, lawyer and accountant have the final word.
Rates and rules last checked October 19, 2026.
Where the rules come from
- CMHC Home Start page (cmhc-schl.gc.ca, checked 2026-10-19): 30 year amortization for first time homebuyers or a newly built home, insured price below $1,500,000.
- CMHC premium information page and CMHC Purchase page, cmhc-schl.gc.ca, checked 2026-10-19.
- Ontario Ministry of Finance, ontario.ca/document/land-transfer-tax, checked 2026-10-19.