Rent vs buy: frequently asked questions

Not exactly. Rent buys you housing, flexibility and freedom from repairs. Owners also have unrecoverable costs: mortgage interest, property tax, insurance and maintenance. The fair comparison is rent versus those costs, not rent versus the whole mortgage payment.

For people who plan to stay five years or more, with stable income, a down payment and an emergency fund, buying often comes out ahead. For people who may move soon, or whose finances are uncertain, renting is often better. Run the numbers for your situation.

Often around five years or more, because buying and selling costs need time to be outweighed by principal paydown and appreciation. In our worked example, the break-even was around year six. It depends on prices, rents and rates.

The minimum down payment is 5% of the first $500,000 of the price, plus 10% of any portion up to $1.5 million. You'll also need closing costs and, ideally, an emergency fund. First-time buyer programs like the FHSA can help.

No. Add property tax, home insurance, utilities, condo fees if any, and a maintenance budget of roughly 1–2% of the home's value a year.

Yes, if you consistently invest the money you'd otherwise put toward a down payment and higher ownership costs. The challenge is discipline. A mortgage forces savings, while renting relies on you to do it.

For most units first occupied before November 15, 2018, increases for sitting tenants are capped at the annual provincial guideline, once every 12 months with 90 days' notice. Units first occupied after that date are generally exempt from the guideline.

On a monthly tenancy, generally at least 60 days' written notice ending on the last day of a rental period. Don't give notice until your purchase is firm.

Only for reasons allowed under the Residential Tenancies Act, such as the landlord or a family member moving in, with notice and compensation, or a tenant breach. Contested evictions require an LTB order.

Condo apartments and townhouses are typically the most affordable entry points, though condo fees add to monthly costs. Some buyers buy a home with a legal secondary unit and rent it out to help with the mortgage.

Renting for six to twelve months can help you learn neighbourhoods before buying. It costs some extra moving and rent, but can prevent an expensive mistake.

Often, yes. Contributions are tax-deductible and growth is tax-free. If you never buy, the balance can generally be transferred to an RRSP without using RRSP room.

Nobody can reliably predict rates or prices. Buy when it fits your plans and budget, stress-test the payment at a higher renewal rate, and keep an emergency fund.

It depends on the building's fees and the rent for comparable units. Compare rent with the condo's unrecoverable costs (interest, fees, tax, insurance) and factor in how long you'll stay.