Active Mortgage · Planning tools
Rent or buy: compare your net worth over time
Compare keeping your rental and investing the difference with buying a home today. The calculator includes mortgage paydown, price growth, closing and selling costs, and what your down payment could earn if invested instead.
$50,000 down · default insurance 3.10% = $13,950 added to the mortgage
After 10 years
Buying comes out ahead by $45,988
That is about 18.0% on these assumptions. Buying stays ahead from around year 6.
- Renting: invested savings
- $255,886
- Buying: equity after selling costs + savings
- $301,874
- Rent today
- $2,200
- Owning today (mortgage $2,565 incl. insurance + tax + upkeep + condo)
- $3,399
- Total rent over 10 years
- $302,646
Cost of owning at another frequency
Rent at another frequency
Net worth year by year
Team Active Mortgage
Rent vs buy
October 26, 2026
Your inputs
- Monthly rent: $2,200/mo + 3%/yr
- Investment return: 5%/yr
- Purchase price: $500,000
- Down payment: $50,000 (10.0%)
- Insurance premium: $13,950
- Rate (example rate only) / amortization: 4.49% / 25 yrs
- Price growth: 3%/yr
- Property tax / upkeep: 1% / 1%
- Years compared: 10 years
What the calculator assumes
- Mortgage interest compounds semi-annually, as is standard in Canada, and the rate stays the same throughout.
- The renter invests the down payment and closing costs up front, plus any month where owning costs more than renting.
- The buyer invests any month where owning costs less than renting, at the same return.
- Home value, property tax and upkeep grow at a steady rate; mortgage payments end once the loan is repaid.
- Selling commission is deducted from the home's value in the year compared. Rent paid is shown for context only.
Questions to consider
Is renting or buying better in Nova Scotia?
It depends on how long you expect to stay, the rent and price you are comparing, your down payment and what your savings could earn. Longer stays give mortgage paydown and price growth more time to offset buying and selling costs. Enter your own numbers rather than relying on a rule of thumb.
What does the break-even year mean?
It is the first year from which the buyer's net worth (home value minus the mortgage and selling costs, plus any invested savings) stays at or above the renter's invested savings for the rest of the 30-year period.
Is mortgage default insurance included?
Yes. With less than 20% down, the premium for your down payment level is added to the mortgage, plus the surcharge for a 30-year insured amortization. Canada's minimum down payment rules are also applied automatically.
How are closing and selling costs handled?
Deed transfer tax and legal costs are added to the up-front cost of buying, and the renter is assumed to invest that same amount. Realtor commission is deducted from the home's value in each year. Adjust the rates to match your municipality.
What investment return should I use?
Choose a figure that reflects how you would actually save. Try a lower and a higher figure to see how much the answer changes; higher returns tend to favour renting.
What is left out?
Moving costs, home and tenant insurance, rate changes at renewal, major repairs beyond your upkeep estimate, market swings and tax differences are not modelled. Lifestyle and stability are personal factors to weigh alongside the numbers.
For illustration only. Results are not financial advice or a mortgage approval. Rates shown are example rates only.
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.