Rent or buy? Run the numbers over your horizon.
Owning builds equity but costs more to carry; renting is cheaper monthly but builds nothing. Over the years you plan to stay, one usually comes out ahead.
Assumes ~2%/yr carrying costs (tax, maintenance, insurance), 25-yr amortization, ~1.5% closing costs, and rent rising ~2.5%/yr.
The longer you stay, the more owning wins — upfront closing costs and land transfer tax get spread over more years, and equity compounds. Stay only a year or two and renting usually wins. This model ignores selling costs, the return you'd earn by investing your down payment instead, and rent-control specifics — treat it as a directional guide, not a forecast.
The decision hinges on your assumptions.
A licensed mortgage professional stress-tests the rate, the horizon and your real carrying costs so the rent-vs-buy call reflects your situation, not averages.
- Tunes the assumptions to you
- Factors your full cost to own
Illustrative comparison only, using simplified assumptions (2%/yr carrying costs, 1.5% closing costs, 2.5%/yr rent growth, 25-year amortization, no selling costs and no opportunity cost on the down payment). Real outcomes depend on markets, taxes and your circumstances. Not financial advice or an offer of credit.