Renting vs. Buying in 2025: The Math, Not the Vibes
The 'rent is throwing money away' line ignores roughly half the cost of owning. Here's the honest comparison for today's rates and prices.
What buying actually costs each month
Mortgage payment is only the start. Add property tax (0.5–1.5% of value annually), home insurance, maintenance (budget 1% of value per year), and condo fees if applicable. On a $700k home, that's often $1,500+/month on top of the mortgage before you've paid down a dollar of principal.
The 5-year rule
With current closing costs (land transfer tax, legal, inspection) and the ~5% you typically lose to selling costs, breaking even on a purchase usually requires 4–6 years of ownership. Shorter than that and renting + investing the difference often wins.
The stress test you'll face
To qualify for a mortgage in Canada, you must prove you can afford payments at your contract rate plus 2%, or 5.25%, whichever is higher. Run your numbers at the stress-test rate, not the rate you're quoted.
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