Rent vs Buy Simulation

The calculator compares two things over the same horizon: net cost of buying (down payment + upfront costs + total instalments paid, minus the estimated current sale value after the remaining mortgage balance) versus total rent paid over the same period. Whichever is smaller at the end of the horizon is "cheaper" in this simulation.

Because buying carries large upfront costs (down payment, notary, BPHTB) that take time to "pay off" through instalments and appreciation. Over a short horizon, renting often looks cheaper because buying hasn't caught up yet. Over a long horizon, buying often overtakes it as you build equity and the home appreciates. Try adjusting the horizon to find your own crossover point.

No. The appreciation estimate here is an ASSUMPTION you enter yourself, not a guarantee. Property value depends heavily on location, surrounding infrastructure, and market conditions — it can rise well above average in one area and stagnate or fall in another. Use a conservative assumption if unsure.

Several things are simplified: rent isn't modelled to rise year over year (it's held flat), and neither are home maintenance, annual property tax, or property insurance on the buying side. Any of these can shift the result one way or the other — treat the output as a discussion starting point, not a precise figure.

The calculator shows "roughly equal" when the net cost gap between buying and renting is small relative to your home's price scale — a sign the decision shouldn't rest on the numbers alone, but on other factors like housing stability, plans to relocate, or your own preference for owning an asset.