Should I buy or keep renting in Ontario?
A side-by-side look at net worth over time: buying a home versus renting and investing the money you’d otherwise put into the house.
Is it better to buy or rent in Ontario?
It depends mostly on how long you stay, how fast home prices grow and what a renter does with the money saved. As of October 2026, comparing a $650,000 home bought with 10% down at 4.49% against renting for $2,600 a month (rising 2.5% a year), with 3% home price growth and 5% investment returns, renting and investing the difference comes out ahead by about $7,658 after 10 years. Buying usually wins the longer you stay, because land transfer tax, closing and selling costs take years to recover.
Example uses the calculator’s starting values below, with rules as of October 2026. Change any number to see your own result.
Renting and investing comes out ahead.
| Owning (mortgage, tax, upkeep, insurance) | — |
|---|---|
| Renting (rent + insurance) | — |
| Home value | — |
|---|---|
| Mortgage still owing | — |
| Buyer’s net worth (after selling costs) | — |
| Renter’s net worth (investments) | — |
| Break-even year | — |
| Down payment | — |
|---|---|
| Land transfer tax (after rebates) | — |
| PST on CMHC premium | — |
| Legal & closing | — |
| Total | — |
Leaning toward buying? Apply online and I’ll run your actual scenario across lenders, free.
Start your application (opens in a new tab) Or book a free call firstAssumptions & method
- Fair comparison: the renter starts by investing the same cash the buyer spends upfront (down payment, land transfer tax, PST on CMHC insurance and closing costs). Each month, whoever has the lower housing cost invests the difference.
- Buyer’s net worth = home value, minus selling costs, minus the remaining mortgage, plus anything they invested. Renter’s net worth = their investments.
- Owning costs include the mortgage payment, property tax and maintenance (both based on the home’s current value), home insurance and condo fees. CMHC insurance is added to the mortgage when you put less than 20% down.
- Land transfer tax uses Ontario rates (plus Toronto’s municipal tax if selected), less first-time buyer rebates of up to $4,000 (Ontario) and $4,475 (Toronto).
- Taxes on investments are ignored, as if invested in a TFSA or FHSA. A principal residence is generally exempt from capital gains tax.
- Rent increases are applied once a year. Ontario’s rent increase guideline applies to many, but not all, units; units first occupied after November 15, 2018 are exempt.
- Home prices, rents and investment returns are uncertain. Try a few scenarios.
These calculators are for general information only and produce estimates. They are not a pre-qualification, mortgage approval or commitment to lend, and are not financial, legal or tax advice. Rules shown were checked in October 2026 and can change; lender and insurer policies vary. Confirm details for your situation before making decisions.
Thinking about making the move?
Let’s look at what buying would really cost you, and whether now is the right time for your plans.
Free, secure and no obligation. It gives me your full picture, so my advice is based on your real numbers, not guesswork. Questions first? Call (519) 900-3907.