The setup
- Buy: $750,000 Mississauga condo, 20% down ($150k), 4.69% 5-yr fixed
- Rent: comparable unit at $2,900/month
- Horizon: 5 years
Monthly carrying cost (buy)
- Mortgage P&I ≈ $3,395
- Property tax ≈ $315
- Condo fees ≈ $720
- Insurance ≈ $50
- Total ≈ $4,480/month
vs $2,900/month rent. The buy costs $1,580/month more, $94,800 over 5 years.
Equity story (buy)
After 5 years on a 25-year amortization, you've paid down ~$72,000 of principal. The home needs to appreciate roughly 1.5,2% per year to break even against renting and investing the $1,580/month difference at 6%.
When buying wins
- You're staying 7+ years
- You value the unit (renovation, pets, school)
- You have a stable income and emergency fund
When renting wins
- You're staying 3,4 years
- Your career may relocate
- You'd otherwise invest the down payment aggressively