BC Rent vs. Buy Calculator

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 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. PTT is computed at the BC bracket schedule on the purchase price; closing costs (legal, title, adjustments) are added to the buy-side cash outlay. The First-Time Home Buyer and newly-built exemptions are NOT auto-applied — model those separately in the dedicated PTT calculator if you qualify.
• 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 rent cap is set annually by the Province; for 2026 it is published on gov.bc.ca). The model assumes the tenant stays in place — vacate-and-re-list re-pricing is not modelled because it depends on individual moves.
• What selling-cost assumption does the buy path use at the comparison horizon?+

  A 5% combined commission convention is applied to the projected sale price at horizon, before computing net equity. Real-world transaction costs vary by listing brokerage and negotiation; adjust your interpretation accordingly if your expected commission differs.
• Does the calculator factor in mortgage renewal at a different rate?+

  No — the mortgage rate field is held constant across the projection. A renewal-rate shock is one of the largest sensitivities in a long-horizon rent-vs-buy decision, so re-run the calculator at a stress-test rate (typically contract + 2.00% or 5.25%, per OSFI B-20) to see how the comparison changes.
• 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.