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, and since 2026-09-11 the exemptions too. 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. Before that the page applied neither exemption and said so here, which was honest but left a first-time buyer of a new home reading a buy side up to the whole transfer tax too high.
• 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?+

  The same 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, not the flat 5% this page used to charge. Commission is fully negotiable under the Real Estate Services Rules, so treat it as a realistic default rather than a quote.
• 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.