Rent vs. Buy Calculator in Toronto (2026)
Is it better to rent or buy a home in Toronto? See the break-even point and total cost comparison over your chosen time horizon.
Property Price
$715,000
65m² · $11,000/m²
Down Payment
$143,000
20% of purchase price
Monthly Mortgage
$3,513
5.5% rate · 25yr term
Monthly Rent
$2,500
City centre
📅 Break-even point: Year 9
Buying becomes cheaper than renting after 9 years in Toronto, once property appreciation and equity are factored in.
After 10 years: Buying saves approximately $18,579 vs renting.
Cumulative Cost Comparison — Toronto
Net costs after accounting for property appreciation and investment returns on down payment.
| Year | Net Buy Cost | Net Rent Cost | Property Value | Verdict |
|---|---|---|---|---|
| 1 | $49,256 | $17,988 | $740,025 | 🔴 Rent |
| 2 | $68,418 | $36,035 | $765,926 | 🔴 Rent |
| 3 | $86,020 | $54,110 | $792,733 | 🔴 Rent |
| 4 | $101,994 | $72,176 | $820,479 | 🔴 Rent |
| 5 | $116,267 | $90,196 | $849,196 | 🔴 Rent |
| 6 | $128,765 | $108,127 | $878,918 | 🔴 Rent |
| 7 | $139,409 | $125,922 | $909,680 | 🔴 Rent |
| 8 | $148,117 | $143,529 | $941,518 | 🔴 Rent |
| 9 | $154,802 | $160,894 | $974,472 | 🟢 Buy |
| 10 | $159,374 | $177,953 | $1,008,578 | 🟢 Buy |
Monthly Cost Breakdown
Buying
Mortgage: $3,513
Maintenance: $775
Property Tax: $433
Total Monthly: $4,720
Does not include down payment of $143,000
Renting
Monthly Rent: $2,500
Annual Increase: +3% assumed
Opportunity Gain: Down payment invested at 7%/yr
Total Monthly: $2,500
Rent increases 3%/yr in projection
Can you afford to buy in Toronto?
Monthly net income: $5,253
Monthly mortgage: $3,513
Mortgage-to-income ratio: 66.9%
🔴 Stretched — consider a higher deposit or longer term
Down payment savings needed: $171,600
At 20% savings rate, years to save: 13.6 years
Notes & Assumptions
This calculator uses the following assumptions for Toronto in 2026: property price $11,000/m² × 65m², mortgage rate 5.5% over 25 years, 20% down payment, transaction costs 4.0%, annual maintenance 1.3%, property appreciation 3.5%/yr, rent inflation 3%/yr, opportunity cost of capital 7%/yr. Land Transfer Tax provincial + municipal. Foreign buyer tax 25% in Ontario.
Same calculator, other cities
Frequently Asked Questions
Is it better to rent or buy in Toronto in 2026?
Based on 2026 data, buying a home in Toronto typically becomes financially advantageous after 9 years, once property appreciation and equity are factored in. With a mortgage rate of 5.5% and estimated annual appreciation of 3.5%, buying makes sense for long-term residents.
How much do you need to earn to buy in Toronto?
A typical 65m² apartment in Toronto costs approximately $715,000 in 2026. With a 20% down payment of $143,000, the monthly mortgage is $3,513. Financial advisors recommend keeping mortgage payments below 28–35% of net monthly income, which implies a gross salary of at least $140,503 per year to comfortably afford this purchase in Toronto.
What is the price-to-rent ratio in Toronto?
The price-to-rent ratio in Toronto is approximately 27x in 2026 — meaning it takes 27 years of rent to equal the purchase price. A ratio above 20 generally favours renting; below 15 generally favours buying. Toronto's ratio of 27 suggests renting is likely more efficient for shorter horizons.
How this calculator works
This calculator compares the total cost of renting versus buying over a configurable time horizon. It includes mortgage payments, transaction costs, maintenance, property appreciation, rent inflation, and the opportunity cost of tying up capital in a down payment.
What's included
- Mortgage principal and interest payments
- Transaction costs (stamp duty, notary, etc.)
- Annual maintenance and property tax
- Property appreciation and rent inflation
- Opportunity cost of capital (7% default)
What's not included
- Renovation or major repair costs
- Home insurance premiums
- Tax relief on mortgage interest (varies by country)
- Emotional or lifestyle value of ownership
Data sources: Central bank mortgage rate data, local property price indices, Numbeo rental averages, and official transaction cost schedules. Updated for 2026.