Buy vs. Rent Simulator
Compare building home equity against renting and investing the difference — see which path builds more net worth, and whether the lead ever changes.
Buying
Only drives the buy scenario
10.0% of home price
CMHC insurance required (down payment under 20%): 3.10% premium adds $18,135 to the loan.
Tax, maintenance, and insurance all scale with the home's appreciating value, so appreciation affects these costs too.
Renting
Only drives the rent scenario
For a comparable home today
Shared Assumptions
Used by both scenarios equally
Whichever side is cheaper in a given month invests the saved difference at this return rate — for either renter or buyer.
Better option
Buying
after 30 years
Net worth advantage
$123,260
in today's comparison
Lead changes
Year 5
who's ahead flips
Renting (invest the difference)Buying (equity + surplus)Lead changes (year 5)
Educational illustration only — not financial advice. This tool compares renting-and-investing to buying using simplified assumptions (constant growth rates, no transaction costs on sale, no tax treatment of investment gains, no rent-vs-mortgage-interest tax deductions). Real outcomes depend on market timing, location, and your own numbers. Consult a financial advisor before making a decision this size.