Active Mortgage · Planning tools
Buy now or wait: compare both paths
Wondering whether to buy this year or keep renting and saving a little longer? Enter your own numbers to compare where each choice could leave you, measured at the same point in the future.
After 7 years
Buying now comes out ahead
The gap is about $85,035 on these assumptions.
- Buy now: home equity
- $270,121
- Wait: net position (equity + leftover cash − rent)
- $185,086
Buy-now mortgage payment at another frequency
If you buy now
- Cash needed today
- $63,250
- Starting mortgage
- $495,000
- Monthly payment
- $2,737/mo
- Home value in year 7
- $676,431
- Mortgage left in year 7
- $406,309
If you wait 2 years
- Savings when you buy
- $87,687
- Home price in year 2
- $583,495
- Cash needed (down + closing)
- $67,102
- Later monthly payment
- $2,834/mo
- Rent paid while waiting
- − $52,800
Team Active Mortgage
Buy now or wait
October 26, 2026
Your inputs
- Home price: $550,000
- Down payment: 10%
- Rate now / later (example rates only): 4.49% / 4.25%
- Amortization: 25 years
- Price change: 3%/yr
- Wait: 2 years
- Compared after: 7 years
- Rent: $2,200/mo
- Savings: $800/mo at 3.5%
How the comparison works
Buying now puts your down payment into the home right away, so you benefit from any price change and from the principal you pay down each month. Waiting keeps that cash in savings, where it earns the return you enter, while rent is paid with no equity in return.
Both paths are measured at the same future year. The calculator does not include property tax, insurance, upkeep, condo fees, default insurance premiums or tax-sheltered accounts, and it holds each rate steady. Lifestyle, job stability and how long you plan to stay are just as important as the result.
Questions to consider
Can this tell me whether prices will rise or fall?
No one can forecast that reliably. The tool simply applies the price growth, rates, rent and savings you enter, then compares where each path leaves you at the same point in time. Try a few different assumptions to see how sensitive the answer is.
What price growth should I enter?
Use a range rather than a single guess. Run a cautious figure, a middle figure and a more optimistic one. If the outcome flips between them, the decision depends more on the market than on your plan, which is useful to know.
Does waiting give me a larger down payment?
It can, if your savings grow faster than the home's price. The calculator keeps the same down payment percentage, so a higher future price means more cash is needed. Any gap is shown as a shortfall and reduces the waiting result.
How is my down payment treated if I wait?
The cash you would have used for the down payment and closing costs is assumed to stay in savings, earning the return you enter, along with your monthly savings while you rent.
Are closing costs and ownership costs included?
Closing costs of 1.5% of the price are included on both paths. Property tax, insurance and upkeep are left out, since you pay for housing either way. The comparison focuses on rent paid versus mortgage paydown and price growth.
What if rates are different when I buy later?
Enter a different future rate to see the effect. Rates shown here are example rates only, not offers; one of our brokers can tell you what is available for your situation.
Can I include an FHSA or other first-time buyer programs?
Not directly. You can approximate regular contributions through the monthly savings field. Our brokers can walk you through how specific programs may fit your plans.
Will this always favour buying?
No. The maths works both ways, and the result will say so when waiting comes out ahead on your assumptions. The aim is to give you a clear starting point for the conversation.
For illustration only. Results depend on your assumptions and are not financial advice or a mortgage approval. Rates shown are example rates only; final terms depend on lender approval.
Talk through your next step with our brokers
Your lender’s terms, household budget and goals matter alongside the numbers. Our team can help you review your mortgage options.