To Buy or Not to Buy

Cash flow

Tight

Buying

Renting

Why this

Ability to save

Liquid, if you buy

Locked in principal

Liquid, if you rent

Why this

Wealth at year 10

Why this

Where a buying month goes

Cash to close

Year-1 money you don’t get back

Buying

Renting

Not in the dollars: how easily you can move, building rules, and whether a renewal or a repair would strain you. This is a primary-residence estimate, not a lender quote or tax advice. Mortgage interest is not deducted, and a gain is generally tax-free. Ontario and Toronto land transfer brackets, including Toronto’s rates above $3 million, and CMHC premiums follow the 2026 public schedules.

The home

Where

Type

Purchase price $ Rent for a similar home $/mo Down payment % First-time buyer rebateEvery buyer on title has to qualify. Up to $4,000 in Ontario and $4,475 in Toronto.

Mortgage rate % Nominal rate. Payments use semi-annual compounding.

Monthly carry

Property tax $/yr Use the tax on the listing, not a guess from the sale price. Condo fee $/mo Home insurance $/yr Tenant insurance $/yr Utilities you pay only if you buy $/mo Repairs and assessment reserve % Share of the home’s value, set aside each year.

Your cash

Take-home pay $/mo Other bills you won’t drop $/mo Debt, childcare, and anything else that is not housing. Cash you have today $ Down payment and closing costs come out of this. Leftover cash is not invested in either path.

Invest 50% of the cash left after bills

Assumptions

Amortization years Term before renewal years Rate after renewal % Home price growth % Rent growth % Return on money you invest % Inflation % Also grows take-home pay, other bills, and utilities. Property tax growth % Condo fee growth % Selling cost % Commission, tax on the commission, and legal, as a share of the future price. Legal and inspection $

To Buy or Not to Buy

Tight

Net worth, in today’s dollars

What moves the answer

Where a buying month goes

The home

Your cash