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Rent vs. Buy Calculator

BC Rent vs. Buy Calculator

Last reviewed by Bronson Job, REALTOR®Sources: BC.gov.ca, Statistics CanadaCC BY 4.0How we verify

Rent-vs-buy is a 5- to 10-year math problem with three sensitive inputs — appreciation, investment return on the down payment, and rent growth — and the answer flips on small changes in any of them. The honest version of this calculator shows you all three sensitivities, not a single number.

If you assume your renewal rate stays flat, you are modeling a fantasy. Most BC homeowners renewed in 2020 at 1.85% and again in 2025 at 5.25% — a ~340 bp swing in five years (see the Bank of Canada policy rate history). Plan for shock, not stability — this calculator now models the 5-year-term renewal pivot Canadian mortgages actually face.

Most calculators give you one number. Real life gives you a range — and the range is where the decision actually lives.
— The honest rent-vs-buy answer

Inputs

Renewal modeling (Canadian 5-year term)

When ON, the mortgage is re-amortized at the renewal rate over the remaining amortization (e.g., 25y total minus 5y elapsed = 20y) at every term boundary. This is how Canadian mortgages actually work.

+1pp is the conservative central case for renewals between 2025–2030. +2pp is the BoC-tightening shock most BC homeowners actually faced from 2020 to 2025. Flat is rarely realistic over a 25-year amortization.

Resolved renewal rate: 6.50% initial contract rate: 5.50%(+1.00pp)

Year-7 buyer net position
-$186,575
Year-7 renter net position
$344,386
Rent advantage
$530,960
Breakeven year (buy first overtakes rent)
> Year 7
Monthly P+I (Canadian semi-annual compounding)
$5,371
BC Property Transfer Tax on purchase
$20,000

Year-by-year trajectory

YearBuyer netRenter netAdvantage
1@ 5.50%$93,016$233,457-$140,442
2@ 5.50%$45,271$247,756-$202,485
3@ 5.50%-$1,081$262,941-$264,021
4@ 5.50%-$45,983$279,061-$325,044
5@ 5.50%Renewal-$89,377$296,166-$385,544
6@ 6.50%-$138,830$319,596-$458,426
7@ 6.50%-$186,575$344,386-$530,960

Highlighted rows mark renewal-term boundaries where the mortgage was re-amortized at 6.50%.

Sensitivity (year 7 advantage)

Small changes in any of these three inputs flip the answer. ±1pp shows you the range.

  • Appreciation −1pp (2.0%)-$615,802
  • Appreciation +1pp (4.0%)-$441,030
  • Investment return −1pp (4.0%)-$480,337
  • Investment return +1pp (6.0%)-$584,296

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. Most BC homeowners renewed in 2020 at ~1.85% and again in 2025 at ~5.25% — flat-rate models miss the shock.

  • Renewal at −1pp (4.50%)breakeven: > Year 7-$479,352
  • Renewal flat (5.50%)breakeven: > Year 7-$504,947
  • Renewal at +1pp (6.50%)breakeven: > Year 7-$530,960
  • Renewal at +2pp (7.50%)breakeven: > Year 7-$557,358

Estimate only. The model assumes constant inputs over the horizon (no rate refinance, no rent-cap variability, no tax optimization). Real-life answers shift as conditions change — re-run the calculator each year.

Reproduce this number9 steps
StepAmount
Mortgage principal: $1,100,000 − $220,000 down$880,000.00
Monthly P+I (Canadian semi-annual compounding @ 5.5%, 25-year amort)$5,371.45
BC Property Transfer Tax on purchase (bc.ptt.brackets)$20,000.00
Closing costs (PTT + legal + title + adjustments)$22,900.00
Year-7 home value (price × (1+3.0%)^7)$1,352,861.25
Year-7 sale proceeds (home value × (1−5% commission) − residual mortgage)$541,657.63
Year-7 buyer net position-$186,574.79
Year-7 renter net position (down payment compounded at 5.0% − cumulative rent paid) (bc.rent_cap.2026)$344,385.55
Year-7 buy advantage (buyer net − renter net)-$530,960.34
Total-$530,960.34

Computed from the BC Real Estate Codex · CC BY 4.0

Related

Verified sources (2)Click to expand

Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.

Fact ID: bc.ptt.brackets · v1View in Codex →
Spot an issue? Report an inaccuracy · How we verify
Verified sources (1)Click to expand

Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.

Fact ID: bc.rent_cap.2026 · v1View in Codex →
Spot an issue? Report an inaccuracy · How we verify