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Toronto real estate planning

Free Toronto Rent vs Buy Calculator

Compare a Toronto renting scenario with a home-buying scenario. See the mortgage, ownership costs, Ontario and Toronto land transfer tax, and estimated equity on one clear page.

Free to useToronto assumptionsNo account

10 min read

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Toronto scenario

Compare your housing choices

How the comparison works

Renting cash versus buying equity

The rent side adds the monthly rent over your selected period, with your chosen annual rent-growth assumption. The buy side includes the down payment, mortgage payments, annual property tax, condo fees and land transfer tax. It then estimates equity from the home value less the remaining mortgage balance and a 5% selling-cost assumption.

This deliberately does not predict the market or decide what you can afford. Change the growth, rate and time-period assumptions to test a conservative scenario before you make a decision.

What the calculator includes

  • • Rent with the annual growth rate you enter
  • • Mortgage principal and interest, property tax and condo fees
  • • Standard Ontario and Toronto land transfer tax, with optional first-time-buyer rebates
  • • Estimated home value, mortgage balance and 5% selling costs at the end of 3, 5 or 10 years

What it does not include

The comparison excludes maintenance and repairs, home insurance, utilities, mortgage-default insurance, legal fees, title insurance, appraisal costs and the investment return a renter could earn on the down payment or monthly cash-flow difference. It also does not estimate income tax, capital-gains tax or transaction-specific rebates.

Use the tool

A four-step Toronto comparison

  1. 1. Match today’s choices: enter the home price, down payment and current rent you are genuinely comparing.
  2. 2. Add ownership costs: use a mortgage rate, amortization, property tax and condo fee that fit the property.
  3. 3. State the forecast assumptions: choose rent growth, home-price growth and a 3-, 5- or 10-year period.
  4. 4. Select Calculate estimate: compare rent paid with the cash left after a modeled sale, then rerun conservative and optimistic scenarios.

Worked example

$850,000 home versus $3,000 rent

Assume an $850,000 Toronto home, $170,000 down, a 4.50% mortgage over 25 years, $6,522 annual property tax, $550 monthly condo fees, 2% annual home growth, $3,000 monthly rent growing 3% and a five-year holding period. Also assume the buyer qualifies for both first-time-buyer land-transfer-tax rebates.

With those inputs, the tool estimates about $191,129 of rent paid, a $3,780 monthly mortgage payment, $4,873 of monthly ownership costs and about $294,112 left after the modeled sale pays the remaining mortgage and 5% selling costs. That $294,112 includes the original down payment and principal repaid; it is not investment profit.

Toronto rent vs. buy questions

Does buying always cost less than renting?

No. The answer depends on time horizon, mortgage rate, fees, purchase price, rent, and future resale value. A short holding period can make transaction costs particularly important.

Does this include both Toronto and Ontario land transfer tax?

Yes, for a standard purchase estimate. Non-resident speculation taxes, legal fees, title insurance, mortgage insurance and other transaction-specific costs are not included.

Why include a selling-cost assumption?

Equity is only spendable after you sell or borrow against the home. The calculator uses 5% as a transparent planning assumption; change your thinking if your likely selling cost differs.

Can first-time buyers use the rebate?

Eligible buyers may receive separate Ontario and Toronto land-transfer-tax rebates. This tool caps them at the published maximums; eligibility rules still apply.

Does this model investing the down payment?

No. The renter’s possible investment return is excluded. Add that comparison separately if investing the down payment or monthly savings is part of your plan.

Is the cash left after sale the buyer’s profit?

No. It includes the original down payment and mortgage principal repaid. Read it as estimated sale proceeds after the mortgage and modeled selling costs, not profit.

Sources reviewed October 6, 2026: City of Toronto Municipal Land Transfer Tax, Toronto property-tax rates and fees, and Ontario Land Transfer Tax. Educational estimate only, not financial, legal or tax advice.