Rent Vs. Buy Calculator

This calculator is for your use only. We do not collect the information you provide for any reason.

This calculator will help you to compare the costs of renting to the costs of buying a home. Since there are all kinds of forces at work behind the scenes (interest, property taxes, tax savings, appreciation, opportunity costs, closing costs, selling costs, etc.), comparing the cost of renting to the cost of buying is a lot more complicated than just comparing the monthly mortgage payment to the monthly rent payment. This calculator attempts to forecast the net effects of all the hidden forces so you can make an informed decision.

Help Buttons: For pop-up explanations of any of the entry fields, click the radio button next to the description.

1. Why to Decide “Rent or Buy”?

When the urge to buy a house kicks in, the first thing you should do is to step back and evaluate whether it makes more sense to keep renting or to buy. One of the best ways to evaluate this question of rent vs. buy is to calculate exactly what you are in for financially. To determine if you should buy, you need to figure out how much you can afford.

2. What “Rent Vs. Buy” Calculator does?

This rent vs. buy calculator breaks down your rent payment with increases and your mortgage payment so you can see exactly how much of your money is going where with either option. It lets you see what your home purchase benefits could be as well as how much your savings can be with renting. This is a great tool to have so you can determine if you can actually afford to buy a home at this juncture in your life. The only way to decide if it is truly better for you to rent or own is to take a hard calculated look at all of the options. This is a subjective question and the answer will vary for each and every person. Using an online rent v buy calculator to help you get closer to your answers is a wise as well as convenient thing to do. The “Rent V Buy” calculator below will provide you an idea of the relative costs of renting vs. purchasing a home. This will calculate both the short term (one year) and long term costs and benefits of purchasing vs renting.

3.Point to consider?

There are good points and bad points to home ownership, just as the same is true of renting. An example of the sunny side of home ownership is the equity you can acquire in your home while a stormy point would be that all the costs of repairs are now yours. The same can be said for renting. When you rent you are not responsible for sometimes-costly repairs but then again you aren't in your own home or building up any equity.

4. Canadian Dream to Own Real Estate Property.

Part of the Canadian Dream is to own your own home, whether it be a Condo, Townhouse, Detached or Semi-Detached house. The financial reality is that a home is the largest investment most people ever make. For many, it becomes their most profitable investment; for some, it becomes a financial and emotional disaster.

5. What’s happening to GTA rental market?

With rents in GTA (Greater Toronto Area) continuing to increase, it's making more and more sense for people to purchase homes rather than renting. In addition to building equity in a home you own such as paying off your mortgage, Real Estate price appreciation, you could save significantly on taxes.

6. Questions to ask yourself?

Buying a house is more complicated than just having the money for the down payment and monthly mortgage payments. Owning a house requires a tremendous commitment of funds, time, and attention. For some people, owning is not the best or only way to have a comfortable and safe living environment. Consider the pros and cons of renting listed below.

7. Who should continue to rent?

For some families, renting is the best solution. You may not be ready economically or emotionally to own. Some people consider renting a temporary way to live until they are more settled in job or family. Renting an apartment or a house is like borrowing a home from someone else - it’s never really yours. In contrast, owning a home allows you to experience the pride of ownership, and the satisfaction of knowing you’re making a smart investment. Buying doesn’t necessarily cost more than renting. And since a home is something that can increase in value over time, the sooner you become a homeowner, the sooner you can benefit. When you add it all up, there’s really no better time to purchase your first home than right now

8. Advantage of Renting?

9. Disadvantages of Renting?

10. Advantage of Buying/Owning a Home?

11. Disadvantage of Buying/Owning a Home?

12. Why you should define Your Values?

Sit down and list the factors about a house that are important to you. If you are married and have children, ask every family member who is old enough to make their own list. Then compare the lists. They won't be the same and you will probably have to talk with each other about the differences and compromise to make a single list for the family. This list should include answers to questions such as the following:

13. Consider the Neighborhood?

14. Consider the accessibility?

For more information on accessible housing, see Removing Barriers in a Home, or Furnishing a User-Friendly Home, or Evaluate Before Buying, Building, or Remodeling.

15. Consider the Community Facilities?

16. Consider the Family Values?

17. Consider the Costs?

18. What is good for you “The Apartment or House Itself”?

19. How Much House Can You Afford?

Buying a house commits your family to a long-term debt and requires time and energy. North American consumers spend from 21 to 54 percent of family income on housing. How much each family spends on housing depends on many factors.

Three basic considerations that can help a family determine how much house they can afford are:

Because of rising prices and increased housing-related expenses, the old rule-of-thumb on how much to pay for a house no longer apply. Lenders usually follow two basic guidelines in determining how large a mortgage to grant:

To learn what your total housing costs might be, use this formula:

For example, a homeowner may have:

NOTE: Insurance costs may include the homeowner’s policy required by most lenders and also mortgage default and term life. Ask prospective lenders what they include in insurance costs. Also keep in mind utility and maintenance costs.

When shopping for an existing house ask to see the utility bills for the last 12 months. Learn as much as you can about the condition of the house to see if repairs will need to be made.

With a new house, monthly utility and maintenance costs can only be estimated based on similar houses in the neighborhood or those of a similar size, style, and construction.

20. Are You Ready for Home Ownership?

When trying to decide if you are ready to buy a house, ask yourself the following questions:

If you can answer YES to all or most of these questions, you may be well on your way to owning your own home.

Questions and Answers
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Renting an apartment or a house is like borrowing a home from someone else - it's never really yours. In contrast, owning a home allows you to experience the pride of ownership, and the satisfaction of knowing you're making a smart investment.

Buying doesn't necessarily cost more than renting. And since a home is something that can increase in value over time, the sooner you become a homeowner, the sooner you can benefit.

When you add it all up, there's really no better time to purchase your first home than right now.

We have tried to answer most of the common questions as and when they arrive as a result of your valuable feed back. The questions and the relevant answers have been provided on this page and appreciate if the reader may please forward any question to my attention so that those may be responded directly or may be added to our page.

This feed back helps the visitors like you to educate themselves before making a critical decission of their life.

Please read the FAQ and let us have your additional questions.
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