How the buy-or-rent comparison works

Comparing a mortgage payment to a rent is misleading. The calculator compares two complete scenarios, year by year, over the same horizon:

  • Buying: you pay the down payment, the welcome tax, the notary and the inspection at closing, then the mortgage, condo fees, taxes, insurance, maintenance and a provision for special assessments. Your net worth is the resale value of the property, minus the remaining mortgage and the selling costs (commission, notary), plus any savings you invest in the years when owning costs less than renting.
  • Renting: you pay the rent (indexed every year) and renter’s insurance. The cash you didn’t spend on the purchase is invested at the alternative return rate, and each year the cheaper side invests the difference.

The mortgage is calculated the Canadian way (interest compounded semi-annually), with a renewal at the end of the term. The capital gain on a principal residence is generally tax-exempt, so no tax is applied to the sale.

What buying really costs, beyond the mortgage

In a condo, the mortgage is only part of the monthly bill. Add the co-ownership fees, the municipal and school taxes, the insurance on your unit, your own maintenance and a cushion for special assessments. At closing, plan for the welcome tax (in Montreal, $4,861 on a $450,000 purchase) and, under 20% down, the Quebec tax on the CMHC premium, payable in cash at the notary. See our closing costs calculator for the full list.

The break-even point: the number that matters most

Buying costs a lot up front and at resale. It takes a few years of equity and appreciation to absorb those costs. Before the break-even year, a renter who invests the difference usually ends up with more net worth; after it, buying pulls ahead. If you might move within that window, renting is often the wiser choice.

Divided or undivided co-ownership

The tool handles both. With an undivided co-ownership, the minimum down payment is 20%, the loan is not insurable by CMHC and few lenders finance it — which changes the cash you need and the comparison.

The programs that change the math

The FHSA (up to $40,000 per person) and the Home Buyers’ Plan (up to $60,000) help you build the down payment, and first-time buyers can get back part of the welcome tax through Quebec’s refundable credit, up to $5,875. Members can enter these amounts in the full report. Details in our programs guide.

Frequently asked questions

Is it better to buy or rent a condo in Quebec?

It depends on three things: how long you will keep the property, the gap between the all-in monthly cost of owning and your rent, and what your down payment would earn if invested instead. Buying usually wins over long horizons because you build equity and benefit from appreciation, but the purchase costs (welcome tax, notary, selling fees) need several years to be absorbed. The calculator shows the break-even year for your numbers.

How many years does it take for buying to beat renting?

Often between 4 and 8 years in Montreal, but it varies a lot with the price, the rate, the condo fees and the rent you compare against. Before the break-even year, renting and investing the difference usually leaves you with more net worth; after it, buying pulls ahead.

Does the calculator include CMHC insurance and the welcome tax?

Yes. Under 20% down, the CMHC premium is added to the mortgage and the Quebec tax on the premium is counted in the cash needed at the notary. The welcome tax uses the City of Montreal 2026 brackets, and members can add the refundable Quebec credit (up to $5,875).

Why does the renter have a portfolio in the comparison?

Because a renter doesn’t have to pay the down payment and purchase costs. A fair comparison assumes that money is invested, and that each year the side with the lower housing cost invests the difference. Otherwise renting would look artificially worse.

What is the difference between a divided and an undivided co-ownership?

In a divided co-ownership (condo), you own your unit and can get an insured mortgage with as little as 5% down. In an undivided co-ownership, you own a share of the whole building: you need at least 20% down, the loan is not CMHC-insurable and few lenders finance it.

Is this financial advice?

No. The tool gives estimates based on the assumptions you enter. Validate your financing with a mortgage broker and your tax situation with an accountant before deciding.