Rent vs Buy Calculator
Should you rent or buy in Montreal? Compare the true cost of ownership versus renting with Quebec-specific taxes, fees, and projections over 25 years.
For a fair comparison, enter the rent and purchase price for similar properties — same size, bedrooms, and neighborhood.
What you pay (or would pay) to rent per month
Tenant insurance, parking, utilities not included in rent
Quebec TAL base rate is 3.1% for 2026
Expected return on invested savings (e.g., index funds)
Tax on renter's investment gains (Canada: ~25% — 50% inclusion × 50% marginal). Buyer's home is exempt.
The price of the property you're considering
Montreal average is ~0.87% of assessed value
Monthly condo fees (0 if house)
Expected annual home value growth
Realtor commissions + closing costs when the buyer eventually sells
With a $500,000 home and $1,500/mo rent, renting stays ahead for the full 25 years. By investing your $107,233 and monthly savings, you end up $228,417 richer as a renter. The math favors renting unless home prices appreciate faster or investment returns drop. By year 26, rising rent means your monthly housing costs as an owner are actually lower than renting.
Monthly Cost Comparison
Renting
$1,500
Owning
$3,336
Upfront Costs to Buy
Buyer's wealth minus renter's wealth. Above zero means buying is the better financial choice.
| After 5 yr | After 10 yr | After 25 yr | |
|---|---|---|---|
| If you rent | $248,997 | $419,287 | $1,222,962 |
| If you buy | $193,569 | $337,736 | $994,545 |
| Difference | +$55,428 rent | +$81,551 rent | +$228,417 rent |
"If you rent" = down payment + closing costs invested, plus any monthly savings vs ownership, compounded at 7%/yr. "If you buy" = home equity + any monthly savings vs renting, compounded at 7%/yr.
This calculator is for educational purposes only. It uses simplified assumptions and does not account for all factors (opportunity costs, lifestyle factors, tax brackets, etc.). Consult a financial advisor for personalized advice.