BC Rent vs. Buy Calculator
Buy and rent net positions over your time horizon, and how sensitive they are to appreciation, investment return and rent growth.
BC 2027 rent cap: 2.2% (codex).
$1,009
Breakeven: >7 years · Monthly P+I $4,778 · PTT $20,000
Over 7 years, renting comes out ahead in your scenario.
- Year-7 buyer net position
- $588,410
- Year-7 renter net position
- $589,419
Method: show the math9 steps
| Step | Amount |
|---|---|
| Mortgage principal: $1,100,000 − $220,000 down | $880,000.00 |
| Monthly P+I (Canadian semi-annual compounding @ 4.31%, 25-year amort) | $4,778.04 |
| BC Property Transfer Tax on purchase Source | $20,000.00 |
| Closing costs (transfer tax + legal + title + adjustments) | $23,000.00 |
| Year-7 home value (price × (1+3.0%)^7) | $1,352,861.25 |
| Year-7 sale proceeds (home value, less commission on the standard BC structure plus GST, less the residual mortgage) | $588,410.39 |
| Year-7 buyer's position (sale proceeds after commission and mortgage, plus any surplus invested) | $588,410.39 |
| Year-7 renter's position (down payment and closing costs compounded at 5.0%, plus yearly savings invested) Source | $589,418.99 |
| Year-7 buy advantage (buyer net − renter net) | -$1,009.00 |
| Total | -$1,009.00 |
Computed from the BC Real Estate Codex · CC BY 4.0
Notes: estimate only, and what this does not consider
Estimate only. Confirm with a licensed professional before relying on this number.
Sensitive to rate assumptions, appreciation, and investment return. Renewal scenarios are illustrative, actual renewal pricing depends on the rate environment 5 years from now. The model assumes constant inputs over the horizon (no tax optimization, no mid-term refinance, no rent-cap variability beyond the BC annual limit). Investment-return assumption should reflect your actual asset mix and risk tolerance.
Sensitivity (year 7 advantage)
Small changes in any of these three inputs flip the answer. ±1pp shows you the range.
- Appreciation −1pp (2.0%)−$87,971
- Appreciation +1pp (4.0%)+$91,170
- Investment return −1pp (4.0%)+$28,593
- Investment return +1pp (6.0%)−$32,164
Renewal-shock sensitivity (year 7 advantage)
Holds every other input constant. Shows how the buy/rent answer shifts if your 5-year-term renewal lands at a different rate than your initial contract.
- Renewal at −1pp (3.31%)+$29,223breakeven: Year 6
- Renewal flat (4.31%)+$14,124breakeven: Year 6
- Renewal at +1pp (5.31%)−$1,009breakeven: > Year 7
- Renewal at +2pp (6.31%)−$16,162breakeven: > Year 7
Year-by-year trajectory(7)
| Year | Buyer net | Renter net | Advantage |
|---|---|---|---|
| 1@ 4.31% | $238,670 | $286,987 | −$48,317 |
| 2@ 4.31% | $292,780 | $332,248 | −$39,468 |
| 3@ 4.31% | $348,800 | $378,829 | −$30,029 |
| 4@ 4.31% | $406,797 | $426,774 | −$19,977 |
| 5@ 4.31%Renewal | $466,844 | $476,129 | −$9,285 |
| 6@ 5.31% | $526,467 | $531,895 | −$5,428 |
| 7@ 5.31% | $588,410 | $589,419 | −$1,009 |
Highlighted rows mark renewal-term boundaries where the mortgage was re-amortized at 5.31%.
Common questions about rent-vs-buy in BC
What rate of return does the calculator assume on the rent-side investment?
The investment-alternative return field defaults to a long-run blended figure you can override. The rent path invests the would-be down payment and closing costs, plus the monthly cash-flow difference, at that rate, compounding to the comparison horizon. Use a conservative real-return assumption (after-tax, after-inflation) for a like-for-like comparison against the home-equity build.Does the calculator account for BC Property Transfer Tax and closing costs?
Yes. Property transfer tax is computed on the BC bracket schedule, then the first-time-buyer or Newly Built exemption comes off, whichever is worth more, since a buyer can qualify for both and may claim only one. Tick "new construction" and the 5% federal GST is charged as well, net of whichever rebate applies. Legal, title and adjustments are added on top. Source: BC Ministry of Finance, Property transfer tax.How is the BC rent-cap modelled on the rent path?
Rent escalates each year at the BC Residential Tenancy Branch annual allowable increase (the Province sets the cap each year; it is 2.2% for 2027, and later years are not yet published). The model assumes the tenant stays in place, vacate-and-re-list re-pricing is not modelled because it depends on individual moves. Source: BC Residential Tenancy Branch, Rent increases.What selling-cost assumption does the buy path use at the comparison horizon?
The same example structure the Net Proceeds and commission calculators use: 7% on the first $100,000, then a sliding 3.0% to 2.5% on the balance, plus GST on the commission. On a $1.35M sale that is about 3.0% all in. BC law sets no commission rate, so treat it as a placeholder rather than a quote. Source: BC Financial Services Authority, “What costs come with selling a home”.Does the calculator factor in mortgage renewal at a different rate?
Yes, and it is on by default. Set the term length and a renewal scenario and the model pivots the rate at every renewal boundary, re-amortizing the remaining balance from that point. A renewal shock is one of the largest sensitivities in a long-horizon comparison, so the default carries a one-point rise rather than pretending the contract rate lasts the whole projection. Turn it off to hold the rate flat.When does buying typically pencil ahead of renting in the Lower Mainland?
It depends on the inputs, the breakeven year the calculator returns is the model answer, not a rule of thumb. As a rough heuristic, higher down payments, longer holding periods, and lower investment-alternative returns push the breakeven earlier; higher mortgage rates, higher strata fees, and shorter holding periods push it later. Run several scenarios.
Sources(3)
Also drawn from: BC.gov.ca, Statistics Canada.
- Property Transfer TaxBC Government, retrieved Nov 4, 2026
- Property Transfer Tax Act, RSBC 1996, c. 378BC Government, retrieved Nov 4, 2026
- bc.ptt.brackets, v2, in the Codex
- Rent increases (Residential Tenancies)BC Government, retrieved Nov 6, 2026
- bc.rent_cap.2027, v1, in the Codex
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Bronson Job PREC, REALTOR® at Momentum Realty Inc.. GVR Member #6015742 · FVREB Member #FJOBBR
Last reviewed by Bronson Job PREC, REALTOR®. Licence CC BY 4.0. How we verify.