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Rent vs buy

A side-by-side look at where you could stand after a few years. Very sensitive to the assumptions, so treat it as a conversation starter.

The home
Renting
Assumptions
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$0
If you buy, net worth after selling costs$0
If you rent and invest, portfolio$0
Home value at year end$0
Mortgage balance remaining$0
Both paths are modelled the same way. Each side invests whatever it saves over the other every month at your investment return, and the renter starts with the cash you would have used as a down payment. The buying figure is your home equity after appreciation, ownership costs, and estimated selling costs. Change the assumptions to see how fast the answer flips.
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For illustration only and not financial advice or an offer of financing. The result is highly sensitive to the assumptions you choose (appreciation, rent increases, investment return, and ownership costs) and to taxes and transaction costs not modelled here, including selling costs and mortgage default insurance. Owning costs are estimated as a percent of price covering property tax, maintenance, and insurance. Speak with us, and your own financial and tax professionals, before deciding. TMG HarbourTown Mortgage Inc., Licence #3000145.

What these numbers mean

Plain-language definitions and the typical ranges, so you can play with the inputs with confidence.

Home price and down payment
The purchase price and the cash you put in. Less than 20 percent down means the mortgage is insured and a premium applies, which this model does not add.
Typical: minimum 5 percent on the first $500,000, 10 percent from $500,000 to $1.5 million.
Rate and amortization
The mortgage rate and the years to repay, used to size the owner's payment and equity build.
Typical: 25 years standard; 30 years on insured first-time and new-build deals, and on conventional.
Monthly rent and rent increase
What you pay to rent today and how fast it climbs each year. Faster increases tilt the math toward buying.
Typical: Nova Scotia has had a temporary annual rent cap; market rents on turnover can move faster.
Years
The holding period. The longer you stay, the more buying tends to win, because upfront costs are spread over more time.
Typical: buying often pulls ahead somewhere around five to seven years, but it depends on every assumption.
Home appreciation per year
How much the property is assumed to rise in value annually. This is the single biggest swing factor in the result.
Typical: long-run Canadian housing growth is often modelled around 2 to 4 percent, but it is not guaranteed.
Investment return per year
What the renter is assumed to earn by investing the down payment and any monthly savings instead of owning.
Typical: a balanced portfolio is often modelled around 4 to 6 percent before tax.
Owning costs per year
Property tax, maintenance, and insurance as a percent of price. Real costs vary by property and municipality.
Typical: roughly 1 to 3 percent of value per year, before condo fees.
Selling costs
What it costs to sell at the end, mainly real estate commission and legal fees, taken off the home value.
Typical: around 3 to 5 percent of the sale price.
The verdict and gap
The headline shows which path is ahead and by how much after the years you chose. Small changes to appreciation, rent increases, or return can flip it.
Typical: treat this as a conversation starter, not a forecast.
These are general ranges, not your numbers. The right figure depends on your situation, the property, and the lender. Talk to us and we will pin it down.