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Rent vs Buy Calculator: Canada

Find the year buying beats renting, using your country's real cost of getting in and out: stamp duty, notary fees and agent commission. 15 countries.

Reviewed by CentExactRates effective 1 sourceCalculated in your browser. Shared links include inputs.

Renting versus buying in Canada

Land transfer tax is provincial, and the Ontario scale is used here because it covers the largest share of Canadian purchases. It matters a great deal which province you are actually in. Alberta and Saskatchewan charge no land transfer tax at all. British Columbia runs 1% to 5%. And Toronto adds a municipal land transfer tax of roughly the same size again, so a Toronto purchase pays about double the figure shown above.

Canadian fixed-rate mortgages are compounded semi-annually rather than monthly, the half-yearly basis section 6 of the Interest Act permits a mortgage rate to be stated on, and this comparison applies that convention. The payment on a quoted 4.6% is therefore slightly lower than an American 4.6% would be. It is a real difference in convention, not a rounding choice, and it is why the monthly payment here will not match a US calculator fed the same numbers.

CMHC mortgage loan insurance is required by law on any loan above 80% of the price, at 0.6% to 3.15% of the loan depending on the loan-to-value band, and it is capitalised into the mortgage rather than paid up front. It is unavailable above a $1.5m purchase price, which is what forces a 20% deposit on an expensive home. This comparison does not include it; the mortgage calculator does, and the tool says so when your deposit would trigger it.

Municipal property tax rates run from about 0.3% in Vancouver to 1.7% in Winnipeg, so the 0.9% default is mid-range rather than typical of anywhere in particular.

For how the calculation works, the formula behind it and what it leaves out, see the full guide. For help interpreting a result or comparing it with a quote or statement, read the questions and answers.

Data sources

Canadian land transfer tax and CMHC mortgage loan insuranceCMHCWithin its effective period

Every document each dataset was read from, its notes and how the figures were checked are listed in the guide's data sources.

This calculator in other countries

Each country has its own rates, thresholds and rules, and its own page that runs the calculator on them and cites the official sources they came from.

CentExactCalculator publisher

CentExact publishes the calculation method, worked examples and available data sources. Automated checks cover reference calculations; they do not certify a result for your circumstances or imply approval by a lender or tax authority.

How we build and test our calculators

This calculator is for general information only and is not financial advice. Results are estimates based on the figures you enter and the stated formula; lenders and providers may round or calculate differently. Check any decision with the institution involved or a qualified adviser.