Calculator
Rent vs buy calculator (Canada)
Compare your net worth after renting and after buying, measured the same way over the time frame you choose. The tool also finds the appreciation rate where the answer changes.
Your numbers
If you rent
Edmonton's CMHC two-bedroom average is $1,500.
Alberta has no rent control on the amount of an increase, only on its frequency.
If you buy
Our published 5-year fixed.
How far ahead the comparison looks.
Ownership costs and assumptions(11)
Used for sales tax on any default-insurance premium.
Edmonton is about 1.00% of assessed value, all in. Elsewhere in Alberta, nearer 0.90%.
As a share of the home's value. 1% is the usual planning assumption.
$0 for a detached house. If the fees look low, ask to see the reserve fund study.
Enter the local transfer tax, legal, inspection and other purchase costs.
This can't be known in advance, and it can be negative. That's why the break-even rate is the headline.
Commission and legal, as a share of the sale price. 5% is the usual planning figure.
What the renter earns on the down payment, the closing costs and every monthly surplus.
When on, the renter's gains are untaxed. Turn it off and the marginal rate applies to the gain at the end.
Rate taken from the RateLens published table, current as of September 21, 2026 at 9:00 a.m. MT. Rules, premium tiers and fee schedules current as of September 16, 2026.
After 10 years, renting leaves you ahead by
$50,366
That flips if homes appreciate faster than 3.92% a year. Future appreciation can't be known, so ask whether you expect prices to rise faster than that.
- If you buy
- $288,214$631,641 home, less 5.0% to sell and $311,844 still owing
- If you rent and invest
- $338,581$248,244 invested, $90,337 of growth
- Break-even appreciation
- 3.92%Above this, buying wins
- Owning costs more, monthly
- $1,688.70The renter invests this difference every month
The default insurance premium is in these numbers
- Horizon
- 10 years
- Province
- Alberta
- Appreciation
- 3.00%
- Investment return
- 5.00%
- Account
- Registered (TFSA/RRSP)
- Compounding
- Semi-annual
- Rules as of
- September 16, 2026
Where each path leaves you, year by year. Buying comes out ahead from the point where the lines cross.
- If you buy
- If you rent and invest the difference
| Year | If you buy | If you rent and invest |
|---|---|---|
| 0 | $10,387 | $53,500 |
| 1 | $34,069 | $76,900 |
| 2 | $58,579 | $101,298 |
| 3 | $83,944 | $126,741 |
| 4 | $110,197 | $153,279 |
| 5 | $137,369 | $180,963 |
| 6 | $165,494 | $209,848 |
| 7 | $194,604 | $239,991 |
| 8 | $224,736 | $271,451 |
| 9 | $255,927 | $304,293 |
| 10 | $288,214 | $338,581 |
Monthly cost of each path in year one
The difference is what the renter has left over to invest. When owning is cheaper, the renter invests nothing extra that month. The contribution never goes negative.
| Measure | Renting | Owning |
|---|---|---|
| Rent | $1,500.00 | — |
| Mortgage payment | — | $2,315.37 |
| Property tax | — | $391.67 |
| Maintenance | — | $391.67 |
| Condo feesNone (detached home) | — | $0.00 |
| Insurance | $30.00 | $120.00 |
| Total each month | $1,530.00 | $3,218.70 |
Rent vs buy at every appreciation rate
Each row shows the result at a different appreciation rate. Find the rate you think is most likely.
| Appreciation | If you buy | If you rent | Difference |
|---|---|---|---|
| 0.0% | $134,656 | $322,516 | −$187,861 |
| 1.0% | $181,370 | $327,601 | −$146,232 |
| 2.0% | $232,437 | $332,951 | −$100,515 |
| 3.0% | $288,214 | $338,581 | −$50,366 |
| 4.0% | $349,085 | $344,504 | +$4,581 |
| 5.0% | $415,457 | $350,736 | +$64,721 |
| 6.0% | $487,769 | $357,292 | +$130,477 |
| 3.92% (break-even) | — | — | $0 |
Average rent in Edmonton, Toronto and Vancouver
In Edmonton, a $1,500 two-bedroom compares with a $470,000 average price. Toronto renters face very different numbers. The ratio of rent to price is what makes this question local.
| City | Average two-bedroom | What it means |
|---|---|---|
| Edmonton | $1,500 | Vacancy of 3.4–3.8% gives tenants the most choice of the 3 |
| Toronto | $2,046 | Purchase prices are several times Edmonton's |
| Vancouver | $2,100 | Highest price-to-income ratio in the country |
Source: CMHC Rental Market Report, 2025 survey. Figures are averages across a whole market and change every year. Use them as context, not as a quote for a specific unit.
Not sure how long you’ll stay?
That input moves this answer more than the rate does. If you’re undecided, a free 15-minute call with Daniel can help you think it through.
Renting is ahead by
$50,366
How this is calculated
Every figure on this page comes from one tested calculation engine. Here’s what it does.
Canadian tax rules in the model
There is no mortgage-interest deduction on a Canadian principal residence. American rent-versus-buy tools have a “state and federal tax rate” field for that deduction. It doesn’t apply in Canada, so it isn’t on this page.
Canada has the principal residence exemption instead, and it’s worth considerably more. It makes the entire gain on your home tax-free when you sell. The buy side of this model applies no tax to the gain.
How each path is calculated
Buying. Your net worth at the end is the home’s value, grown at your appreciation assumption, minus the cost of selling it and whatever you still owe. The balance comes from a full amortization schedule at semi-annual compounding, and it includes the default insurance premium when one is financed.
Renting. The renter invests the down payment and closing costs instead of spending them. Each month, they also invest the difference between owning costs and renting costs, compounded at the return you set. In a month when owning is cheaper, the renter invests nothing extra. The contribution never goes negative. If the account is non-registered, the marginal rate is applied to the gain at the end, and only to the gain.
The break-even appreciation rate
House-price appreciation is the assumption that matters most, and it can’t be known in advance. So instead of asking you to pick a number, the tool solves for the appreciation rate at which the 2 paths end up in the same place. If that rate looks low next to Edmonton’s history, buying is the better bet. If it looks optimistic, renting is.
What Alberta changes
The cost of buying is unusually low. There’s no land transfer tax, a few hundred dollars of Land Titles registration fees, and no provincial sales tax on the default insurance premium. The cost of selling is roughly 5% of the sale price in commission and legal fees, the same as anywhere. So in Alberta, the usual “you need 5 years to break even” warning is about the cost of selling, not buying. An Ontario buyer also pays land transfer tax on the way in. See the entry cost itemised.
Common questions
Is it better to rent or buy in Edmonton?
It depends on how long you stay and what home prices do.
Take Edmonton’s CMHC two-bedroom average rent of about $1,500 and a $470,000 average price, with 10% down over 10 years. The 2 paths end up close enough that the appreciation assumption decides it. That’s why the tool solves for the break-even appreciation rate instead of giving you a verdict.
Why is there no mortgage interest deduction in this calculator?
Canada doesn’t have one for a principal residence.
Interest on the home you live in isn’t deductible against income here. American calculators include the field because US taxpayers can deduct it. Canada has the principal residence exemption instead, which makes the capital gain on your home tax-free. For most owners, that’s worth considerably more.
How long do I have to own before buying beats renting?
There’s no single number. It depends on your own figures.
Selling costs around 5% of the sale price, and it takes years of principal repayment and appreciation to cover that. In Alberta, the cost to buy is unusually low because there’s no land transfer tax. So the short-hold risk here comes from selling. The chart shows the year the lines cross for your numbers.
What return should I assume on invested savings?
The default is 5% a year in a registered account. That’s a conservative long-run assumption for a balanced portfolio after fees.
The registered switch matters as much as the number. In a TFSA or RRSP, the renter’s gains compound untaxed. In a non-registered account, the marginal rate applies to the gain at the end. That tax only applies to investment gains, never to the gain on a principal residence.
Does the calculator include the CMHC premium if I put less than 20% down?
Yes.
With less than 20% down, the premium comes from the current schedule and is added to the mortgage, so the model pays down the larger insured balance. In Alberta there is no PST on the premium, so nothing extra is due in cash at closing. In Ontario, the same premium would carry an 8% tax payable on closing day, and it couldn’t be added to the mortgage.
What to work out next
- AffordabilityIf buying comes out ahead, see the price your income supports.
- Closing costsWhat it costs to buy in Alberta, itemised. There's no land transfer tax.
- CMHC insurance premiumWith less than 20% down, the premium that gets added to your mortgage.
- Mortgage paymentThe payment on its own, at every frequency.
- Down paymentHow long it takes to save the down payment in this model.
- 25 vs 30-year amortizationA longer amortization changes the monthly gap between owning and renting.
This calculator provides estimates only. Results are based on the information you enter and on assumptions that may not reflect your actual qualification, rate or costs. These include semi-annual, not-in-advance compounding for fixed rates, as required under section 6 of the federal Interest Act, and the mortgage default insurance premium tiers published by CMHC, Sagen and Canada Guaranty. It is not mortgage advice, a quote, a rate hold, a pre-approval or an offer of credit, and RateLens does not guarantee its accuracy or completeness. Your actual rate, payment, default insurance premium and closing costs will depend on your credit profile, income, the property, the lender’s current rates and policies, and other factors confirmed during a full application.
This comparison reflects Canadian tax treatment: mortgage interest on a principal residence is not tax-deductible, and the principal residence exemption generally applies to capital gains on your home. It does not constitute tax advice.
Premiums shown approximate the published premium schedules of CMHC, Sagen and Canada Guaranty and are subject to each insurer’s current rate sheet. They are not guaranteed by RateLens. No provincial sales tax applies to the premium in Alberta. In Ontario, Quebec, Saskatchewan and Manitoba, PST on the premium is payable in cash at closing and cannot be added to the mortgage. Default insurance is not available on properties priced at or above $1,500,000.
Rules snapshot: September 16, 2026. Rates shown are calculation assumptions, not confirmed offers. Speak with Daniel De Sousa, Mortgage Associate, for a personalized quote. Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage, a licensed mortgage brokerage licensed by RECA.
Daniel De Sousa, Mortgage Associate, is licensed by the Real Estate Council of Alberta and registered with Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage.
Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage is a mortgage brokerage licensed by the Real Estate Council of Alberta (RECA). Verify our licence on RECA ProCheck(opens in a new tab)
RateLens is a trade name used by Daniel De Sousa, Mortgage Associate, licensed in Alberta by the Real Estate Council of Alberta and registered with Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage.
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Talk through how long you plan to stay
How long you stay moves this answer more than the rate does. A 15-minute call with Daniel can help you pin it down.
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