Mortgage · Canada
Rent vs buy.
Project the total cost of renting against owning over your time horizon, factoring in equity, appreciation, and the rent you would have paid.
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Comparison
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How this comparison works
The model totals what you'd pay over the time horizon when renting (rent + assumed 0% return on the down payment held in cash) versus owning (mortgage payments, property tax, maintenance, less the home equity and appreciation gained). The numbers ignore taxes and closing costs; use them as a directional guide, not a definitive answer.
TNAADO Inc. · Toronto
The comparison is not rent against mortgage payment
The honest comparison is the unrecoverable cost of each. For renting, that is the rent. For owning, it is property tax, insurance, maintenance, condo fees, the mortgage interest (not the principal, which is savings) and the opportunity cost of a down payment sitting in a house instead of invested. Set those against each other and the answer turns on the local ratio of price to rent rather than on the two payment figures.
The mistake people make. Counting the whole mortgage payment as a cost and the whole of any price appreciation as a gain. Principal repayment is a transfer from one pocket to another. Appreciation is realised only on sale, and it arrives after commission, legal fees and the land transfer tax that was paid on the way in. A short hold rarely clears those costs.
Disclaimer
Estimates for educational purposes only. Real outcomes depend on local market, taxes, investment returns, and personal lifestyle factors.