Rent vs. Buy (Canadian)

Are you in confusion to take your home acquisition decision? This dilemma is obvious as it is difficult compare your benefit while choosing one between buying and renting. But ACalculator will do this for you with ease. Deciding the best home acquisition is not as straight-forward as just analyzing the monthly payments for mortgages. You need to consider several parameters like interest rate, inflation rate, purchase price, processing fees and many more. Thanks to ACalculator! Now you can chose the appropriate and profitable one depending on this calculator.
Price of home
The current market price at which you can purchase the home.
Cash on hand
This is the amount of cash dollar you have in hand and can be used to make cash downs. The more you can pay as down payment the less is the requirement of mortgage loan and thus, the less is your cost of financing.
Interest rate
The interest rate currently available on mortgage loan.
Amortization period
Time (in year) required to fully pay off the mortgage loan.
Property tax amount
The percentage amount payable for the property every year as tax.
Mortgage fees
This is the originating fees of mortgage charged by mortgage loan providing institution.
Maintenance/Condo Fee
This is the maintenance costs including condominium and other upholding costs charged monthly to the owner of the home. Don’t get confused as in the Province of British Columbia; this cost is termed as ‘strata’.
Other closing costs
These are the all filing and miscellaneous costs excluded previously.
Total closing costs
The total amounts that will cost you while closing the loan including mortgage insurance policy, originating fee etc.
Mortgage amount
Total feasible amount for this particular mortgage.
Monthly payment (PI)
This is the amount paid monthly other than maintenance, condominium, or property tax payable. This is the total amount of principal and interest payable on the mortgage loan every month. ACalculator assumes that your loan is covered by GST and insurance. So, it increases your monthly interest and principal payables.
After-tax investment return
After-tax investment return is calculated if you forgo purchasing and invest your closing costs and cash downs after paying the income tax.
Monthly rent payment
The monthly amount payable if you choose rent instead of purchasing.
Expected inflation rate
The anticipated annual average rate of inflation over long-term that affect rent, tax and other payments.
Home appreciates at
The appreciation you are expecting per annum in your purchasing home.
Future sales commission
The commission you have to pay as brokerage cost to the broker if you sell the house in future.
Is this a new home?
If you check this box, it will count 5% GST on your purchase price and deduct rebates. Rebate can vary from zero to $6,300 depending on the price and province.. This box should keep unchecked if it is an old home because it has already been adjusted for GST + HST or PST.
Mortgage Insurance Required?
Checking this box will make calculations for the amount it will take to pay for mortgage insurance policy.
Mortgage Loan Insurance Premium (non-refundable)
This non-refundable insurance policy enables you to lower the down payment while purchasing. It is prohibited in Canada according to The Canadian Bank Act to issue mortgages without insurance. ACalculator assumes that your mortgage loan insurance premiums are self-financed by the mortgage itself and hence reduce your upfront payable.