The single most repeated piece of bad financial advice in Canada is: "You're throwing your money away on rent." Let's do the actual math.
The true cost of owning
Most people only think about mortgage payments. The real cost includes:
- Mortgage payment: ~$3,200/month (Toronto, $700K home, 20% down, 5.5% rate)
- Property tax: ~$500/month
- Condo maintenance fee (if applicable): $600–$900/month
- Home insurance: ~$150/month
- Maintenance reserve (1% of value/year): ~$583/month
- Total real cost: ~$5,000–$5,400/month
The opportunity cost
The down payment ($140,000 on a $700K home) invested in an index fund at 7% annual return would generate ~$800/month in growth. That's money you're not earning by having it locked in equity.
When buying wins
Buying beats renting when: you plan to stay 7+ years, you have 20% down to avoid CMHC insurance, your total ownership cost is within 20–25% of comparable rent, and property values continue to appreciate at historical rates.
The honest verdict for 2025
In Toronto and Vancouver, at current prices and rates, renting and investing the difference often wins financially over horizons under 10 years. Calgary and other secondary markets tip the math earlier toward buying.