Financial Calculator - Rent vs. Buy
The rent vs. buy calculator provides a tool to calculate if it is viable for you at this time in your life to purchase property. By entering your current financial information the calculator can assess your situation.
Price of Home
Value of the home you are interested in purchasing
Cash on Hand
Amount of cash you have for the down payment and all closing costs.
Interest rate
This is the expected rate the loan will be calculated at
Amortization Period
The number of years over which you will repay this mortgage.
Property Taxes
Enter the annual property tax for the property you interested in purchasing.
Mortgage Fees
Enter estimate of what the mortgage charges will be
Is this a new home
If this is a new home 5% GST will be charged
Mortgage Insurance Required (non-refundable)
Mortgage insurance makes it possible for homebuyers to purchase a home using a lower down payment. The Canadian Bank Act prohibits most federally regulated lending institutions from providing mortgages without mortgage loan insurance for amounts that exceed 75% of the value of the home or purchases with less than 25% down payment. The Canadian Mortgage and Housing Corporation (CMHC) offers mortgage loan insurance.
| CMHC current Mortgage Loan insurance Premium Rates*: |
Loan Size
(% of property value) |
Standard Rate (as a % of loan) |
| Up to and including 65% (over 35% down payment) |
0.5% |
| Up to and including 75% (25% to 34.99% down payment) |
0.65% |
| Up to and including 80% (20% to 24.99% down payment) |
1.00% |
| Up to and including 85% (15% to 19.99% down payment) |
1.75% |
| Up to and including 90% (10% to 14.99% down payment) |
2.00% |
| Up to and including 95% (5% to 9.99% down payment) |
2.75% |
| Up to and including 95% Flex Down or Cash Back Equity Owner-Occupancy Program** (5% to 9.99% down payment) |
2.90% |
| Up to and including 100% (0% to 4.99% down payment) |
3.10% |
*An additional 0.2% is added to all mortgages with amortizations of 26 to 30 years. An additional .4% is added to all mortgages with amortizations of 31 to 35 years. An additional .6% is added to all mortgages with amortizations of 36 years or more.
This calculator assumes the following:
That financial institutions will not charge any Mortgage Loan insurance Premium if your down payment is 25% or greater.
That your mortgage insurance premium can be financed by your mortgage, which can greatly reduce the amount of upfront money that is required to purchase a home.
Other Closing Costs
Enter an estimate of any other closing costs that may apply
Maintenance/Condo Fees
Enter the monthly amount of fees that will be charged to maintain the property
After Tax Investment Return
This is the annual percentage you expect to receive on this return
Home Appreciates at
Enter the annual percentage that you expect the property value to increase by
Expected Inflation
Enter the average annual percentage you expect inflation to increase by
Future Sales Commission
Enter an estimate of sales commission that would be paid on the property
Monthly Rent Payment
Enter the amount you currently pay for rent
Chart Selection
Monthly Payment Breakdown
Provides a breakdown of how the monthly payments are disbursed
Projected Monthly Payments
Provides a breakdown of the payment amount
Home Equity vs. Investment
Provides a comparison between purchasing and renting
Use of Cash On Hand
Provides a breakdown of the down payment and closing costs
Other Options
Show Schedule By Year
Provides breakdown based on annual numbers
Show Schedule by Month
Provides breakdown based on monthly numbers
Upon input completion you have two options
Calculate button will display the rent vs. buy breakdown for the values you entered.
View Report Button will provide you with a hard copy of the Rent vs. buy breakdown for the values you entered.