How the math actually works
Every Buy Now vs Wait debate comes down to four levers: home price growth, mortgage rates, your rent, and how much you'd actually save while waiting. This calculator doesn't predict any of them — it lets you set them and shows the result.
On the buy side, your down payment buys appreciation immediately. A 3% gain on a $550,000 home is $16,500 in year one — money you'd need to save out of after-tax income to match. Your mortgage payment also chips away at principal every month, building equity quietly in the background. The catch: you're locked in for the cycle, and your cash is tied up in one asset.
On the wait side, your unspent down payment compounds in a savings account. You skip the property tax, maintenance, and closing costs of ownership — but you pay rent, which is pure cash flow with zero equity at the end. If rates drop and prices stall, waiting wins. If rates stay flat and prices grow, buying wins. The calculator quantifies the crossover for your exact numbers.
What this calculator doesn't model
- Property tax, insurance, maintenance, and condo fees — these are housing costs you'd pay either way (in rent or directly), so they don't change the comparison.
- CMHC insurance premium financed into the mortgage at low down payments. Add ~4% to your mortgage balance mentally if you're under 20% down.
- Tax-advantaged accounts (FHSA, RRSP HBP). If you'd save aggressively in these, bump the savings APY up to reflect investment returns.
- Lifestyle — owning means you can paint the walls and rent means you can move in 60 days. Math is half the decision; the other half is yours.