SaferWealth Calculator™
Rent vs Buy Calculator Toronto – Housing Affordability Tool
What's Safer? Owning or Renting?
We built this for priced-out Canadian house-buyers who are tired of being told that renting is ‘throwing money away’.
SaferWealth will show you how you can grow wealth and protect your family, even if you never buy a million-dollar house.
Change these inputs to get started!
INPUTS
Step 1
(Enter your own estimates/actuals for your owning and renting scenarios)
House Purchase Price
Mortgage Rate % (APR)(5y fixed, 25y amort)
Down Payment
(% of house price)
(Error Message)
Closing Costs
(% of house price)
Annual Maintenance Costs
(% of house price)
Your Monthly Rent
Estimated Annual Inflation
(affects prop tax, maint. and rent per year)
Closing Costs: These costs are for realtor and lawyer fees, land transfer taxes, etc., when owning a house. Remember, if you move, you have to increase this percentage as you will be paying more than once.
In ChatGPT: "For a [Toronto] house purchase, what are typical closing costs as a percentage of the house purchase price?"
Maintenance Costs: 25 years of repairs and renovations for expenses such as, new roof, furnace, cracked foundation, floods, etc. broken down into a monthly expense. Personalize for your house age and location.
In ChatGPT: "For a [Toronto] house purchase, excluding mortgage interest, redecorating, etc. what is the annual cost of ownership expressed as a percentage of the house purchase price?"
OWNING
Step 2
(mortgage payments and other
ownership costs)
Down Payment
$$$
Closing Costs
$$$
$$$
Monthly Maintenance Costs
(annual maintenance costs/12 months)
Mortgage Payment
$$$
(based on a 25 year amort.)
Monthly Expenses
$$$
Add: Mortgage Payment
$$$
Monthly Cash Outflow, Owning
$$$
INVESTMENT INSURANCE
Step 3
(swapping house ownership for renting with
investment insurance)
Down Payment
$$$
Add: Closing Costs
$$$
Initial Investment Insurance Premium
$$$
Monthly Cash Outflow, Owning
$$$
Monthly Investment Insurance Premium
$$$
(monthly cash outflow - rent)
Here's the Results!
Wealth Accumulated...
(based on a 25 year amortization and policy year, for a 30 year old male non-smoker)
Annual House Appreciation % | 🏠 Owning Returns | Mortgage Interest | Maintenance + Property Tax | Net Home Return | 🛡 Investment Insurance Returns | Winner | Investment Insurance Advantage |
|---|---|---|---|---|---|---|---|
So for the next 25 years, your house will need to grow at
CAGR ${breakEvenPct.toFixed(2)}% so you don't lose any money.
Please consider in the last 25 years Toronto grew at 6%. Canada at 4%.
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