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Buy a Home or Rent and Save?

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We are all confronted at one point in your life between renting a place and buying a house. There are many advantages and disadvantages for both parts; some of the arguments are qualitative and others quantitative. Many people dream to become home owners and this is taking a huge place in the decision, but as for quantitative arguments, Credit Finance + give you the correct tools.

« Read the rest of the introduction to this calculator

Please change the suggested values with your own amounts in the blue text boxes.

Help with our calculators Help

Term

years

Buy a home

Cost of the propriety Help

Cash down Help Cash down on the property		%
Total mortgage Help Amount borrowed from the bank to buy the property	$
Term Help The number of years on the mortgage loan		years
Rate Help Interest rate for the mortgage loan	%
Monthly payments Help Monthly payments to repay the mortgage	$

Transfer tax Help Municipal tax imposed on new property owners
Notary cost Help Notary fees for transaction services
Municipal taxes Help Annual municipal taxes		per year
Condo fees Help Annual condo fees for building maintenance and other services		per year
Insurance Help Insurance for fire, theft and others.		per year
Unexpected expenses Help Problems related to plumbing, electricity, renovations, etc.		per year

Property value Help Value of the property	$
Renovations Help Renovation costs
New value Help Increased value after renovations	$
Annual appreciation Help % annual increase of the value of the property: pessimistic 1%, average 2% to 3%, optimistic 4% and up.	%
End of the term value	$

Total payments Help Total payments made to the bank	Total interests Help Total interest bank payments	Total capital Help Total bank capital payments
$	$	$

Rent and save

Term Help Number of years renting and saving		years
Monthly rent Help Monthly rent amount for the first year
Annual increase rate Help Annual increase rate of the rent	%
Monthly savings Help Amount saved monthly which will be invested
Cash presently saved Help Amount already invested in the beginning
Rate of return Help Rate of return compound monthly on the investment, i.e. the interests are capitalized every month and reinvested 12 times a year	%

Results

	Buying	Renting
Non invested cash Help Buying: Amount spent excluding payments on capital in order to buy a property (interests, fees, taxes and unexpected expenses), also known as wasted money. Renting: Total payments made towards a rent, also known as wasted money.	$	$
Amount disbursed Help Buying: Total disbursement made to buy and maintain a property Renting: Total disbursement made to invest, including the rent.	$	$
Total gain Help Buying: Value of the assets at the end of the term Renting: Value of the investment at the end of the term.	$	$
Net profit / loss Help Buying: Value of the assets minus the total disbursement Renting: Value of the investment minus the total disbursement.	$	$
Rate of return Help Buying: Rate of return of the total investment Renting: Rate of return of the total investment	%	%

To learn more about this chart, please read the equity chart section in our introduction.

Equity Chart

Other pages that might interest you:

Intro to "Estimate your Home Value Appreciation and the Profits from its Future Sale"

Intro to "What Is the Home Value You Could Afford?"

Intro to "Calculate the Net Profitability of your Rental Income Property"

« Back to Real Estate & Mortgage Calculators
« Introduction

Numbers in our calculators are rounded to two decimals.
The same calculations made in an Excel spreadsheet may differ slightly.

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