A homeowner pays about 5% of the value of their home per year in unrecoverable costs (interest, taxes, maintenance, opportunity cost). If the equivalent annual rent is less than 5% of the price, renting is more advantageous.

Why 3% maintenance if my house hasn't cost anything in 5 years?

Maintenance comes in waves: roof, windows, heating, kitchen. Spread over 30 years, 1 to 3% per year is the recognized norm among Canadian financial planners.

Why not 10% real estate appreciation?

The increases from 2020-2022 were pandemic anomalies. Over 20 years in Quebec, real appreciation is 2.5 to 4%. Using 10% skews the calculator in favor of buying.

Is home insurance mandatory?

Not legally, but all financial institutions require it to unlock the mortgage. Average premium in Quebec: $900 to $1,500/year for a $400,000 home.

Does this calculator work for a duplex?

No. A plex generates rents and has different taxation (deductible expenses). Use a dedicated real estate investment calculator and consult an accountant.

What mortgage rate should be used?

Use the rate confirmed by your mortgage broker if you have an offer, otherwise the median 5-year fixed rate from the Bank of Canada. Test multiple rates to see sensitivity.

Down payment 20% or less?

20% avoids CMHC and lowers payments. 5-10% keeps cash for investing and maximizes leverage. Rule: if your investments yield more than the mortgage rate + 4%, a low down payment is mathematically winning.

Landlord or Tenant Calculator 2026

Q: Is buying a house always a good investment?

No. Buying becomes profitable when 3 conditions are met: a horizon of 7 years or more, a down payment of 20%, and a reasonable price/rent ratio. In a short horizon or in an expensive market, renting + investing can outperform buying.

Q: Should tax be included in the comparison?

The sale of the principal residence is tax-exempt in Canada. If you invest in a TFSA, the gains are also tax-free — fair comparison. In a non-registered account, use an after-tax return (e.g., 4.5% instead of 6%).

Q: Does this calculator replace a financial advisor?

No. It provides an objective reading, but your decision should integrate investor profile, job security, family goals, and taxation. Consult a certified financial planner (IQPF) before signing.

Calculator: Owner or Renter?

Compare the actual cost of buying vs renting over your chosen duration.

🏠 If You Buy

Purchase Price ($)

Down Payment (%)

Mortgage Rate (% annual)

Amortization (years)

Municipal + School Taxes ($ / year)

Home Insurance ($ / year)

Annual Maintenance (% of value)

Condo Fees ($ / month — 0 if house)

Initial Closing Costs (% of price — notary, welcome taxes)

Property Appreciation (% / year)

🔑 If You Rent

Monthly Rent ($ / month)

Tenant Insurance ($ / month)

Annual Rent Increase (% / year)

Return on Your Investments (% / year, after tax — e.g. index TFSA)

💡 Calculator Principle

If renting costs less than owning, the difference + the down payment that has not been tied up is invested each month at the indicated return.

⏱ Duration of Comparison

Horizon (years)

Exit Selling Costs (% — broker, notary)

Inflation of Charges (% / year on taxes + maintenance)

🏠 Owner Scenario

Mortgage Payment / month—

Interest Paid (cumulative)—

Principal Repaid—

Taxes + Insurance + Maintenance—

Closing Costs (initial + sale)—

Value of the House (end)—

Mortgage Balance (end)—

Net Worth Owner—

🔑 Renter Scenario

Average Rent / month—

Rent + Insurance (cumulative)—

Down Payment Invested (at start)—

Monthly Differences Invested—

Portfolio Return—

Net Worth Renter—

Buying or renting in Quebec in 2026 is not just a matter of preference. It’s a financial calculation that depends on the purchase price, the mortgage rate, the rent in your area and—most importantly—the return you can get elsewhere with the down payment. This free calculator, based on the method popularized by François Lambert and CMHC analyses, gives you a numerical answer in 30 seconds. Assur360, an AMF-certified comparison platform, shares this tool with its clients to help them make an informed choice.

REAL ESTATE DECISION

Is my house really a better investment than the stock market?

The calculator above uses the same logic as financial planners: it compares the net worth of the two scenarios, hidden costs included. Also request a free home insurance quote to anchor your numbers.

Free home insurance quote

Variables analyzed

30 s

Time for a verdict

25 years

Maximum horizon

100 %

Free and anonymous

How the calculator works

Most people compare their mortgage payment to their rent. This is a mistake. A homeowner also pays taxes, maintenance, insurance and closing costs — and his down payment could have grown elsewhere. The Assur360 calculator corrects for these biases by simulating the two scenarios over the horizon you choose on a month-by-month basis, and then compares the final net worth.

🏠

Owner’s side

We calculate the mortgage payment (principal + interest), we add municipal taxes, school taxes, maintenance (1 to 3% of the value), insurance, condo. We also increase the value of the house according to the appreciation chosen and we remove the selling costs at the exit.

🔑

Tenant side

The non-locked-in down payment is invested from the start. Every month that owning is more expensive than renting, the difference is added to the wallet. All of this grows at the return you indicate (6% is a realistic average for an index TFSA).

📊

The verdict

At the end of the horizon, we compare two net values: the value of the house – mortgage balance – selling costs on the one hand, and the value of the portfolio on the other. The winner is the one who leaves the most money in your pocket.

6 steps to a reliable result

Enter a realistic purchase price for YOUR neighborhood

A 41/2 in Montreal costs $500,000, in Thetford Mines $220,000. Consult the property assessment portal or recently sold properties on Centris before filling out.

Down payment: minimum 5% (or 20% to avoid CMHC insurance)

Below 20%, add CMHC mortgage default insurance (2.8% to 4% of the loan) to your purchase price. On $400,000 with a 10% bet, that’s about $12,000 more.

Mortgage rate: use today’s rate, not posted rate

In April 2026, 5-year fixed rates are around 4.79% to 5.49% according to the Bank of Canada and Canadian banks. Choose a median value to test.

Interview: 1.5% is prudent, 3% is the norm for financiers

François Lambert uses 3% in his simulations. The rule of thumb is recognized: 1% to 4% of the value of the house per year (roof, windows, heating, entrance, landscaping combined).

Investment returns: stay conservative

The S&P 500 has returned an average of 9.5% over 30 years, but after taxes and fees, count 5.5% to 7% net. A 60/40 portfolio (stocks/bonds): 5% to 6%. Avoid 10%+ assumptions: this is a bias in favour of renting.

Real estate appreciation: 3% is realistic, not 8%

In Quebec, the average long-term (20+ years) home appreciation is 3-4% after inflation. The highs of 2020-2022 (+15%/year) are not repeated. Stay conservative.

💡

The advice of François Lambert — and most planners

“The house as an investment is not automatically a winner. A homeowner’s real gain comes from leverage (buying $400,000 with $80,000 stake), not from price appreciation. If you can’t commit to a minimum of 7 years, renting and investing the difference will often be a winner. »

Comparison Chart: Owner vs. Renter in Quebec 2026

Criterion	🏠 Owner	🔑 Tenant
Cost of admission	High (bet + 2-3% fee)	Low (1-2 months rent)
Leverage	✓ 5x your stake	None
Liquidity	Low (30-90 days to sell)	High (24-hour saleable investments)
Geographic flexibility	Low	High (12 month lease)
Maintenance / unforeseen events	At your own expense (1-3%/year)	✓ Owner pays
Cost of living indexation	✓ Fixed mortgage = protection	Rent indexed annually
Forced Discipline of Savings	✓ Principal repaid	Request for personal discipline
Expected return (long term)	3-4% real (Quebec 20 years+)	5-7% real (global index)
Recommended minimum horizon	7 years minimum	All horizons

*Indicative data 2026 — CMHC, Bank of Canada, Statistics Canada. Get your home insurance quote in 3 minutes.

⚠ The hidden fees that 80% of buyers forget about

⚠️

These expenses can add $15,000 to $40,000 in the first year

Welcome taxes (transfer taxes): 0.5% to 2.5% of the price. Out of $400,000 in Montreal: ≈ $4,500. Notary : $1,200 to $2,000. Pre-purchase inspection : $400 to $800. CMHC insurance if down payment < 20%: 2.8% to 4% of the loan. Moving + Move-In Renovos : $5,000 to $15,000. Adjusted property taxes and year-end adjustment: variable. Title + recording : $300. Our calculator incorporates these costs via the “closing costs” field — 2% is a floor, aim for 3%.

NEXT STEP

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When to buy and when to rent (depending on your situation)

The calculator’s verdict is a first reading. Your living situation matters as much as the numbers.

🏠 Buy if…

You stay 7 years or more in the same place · You have a stable job and a 20% down payment · You are disciplined for maintenance · You want the security of a fixed payment · The family is growing · The rent in your area is very close to the property charges.

🔑 Rent if…

Your horizon is less than 5 years · You don’t have the minimum down payment · You prioritize flexibility (career, travel) · Your rent is significantly below the property charges · You already invest rigorously (RRSP/TFSA) · You hate maintenance or live in a high-end condo.

3 concrete examples in Quebec 2026

EXAMPLE 1 — MONTREAL

Couple, condo $500,000, 5-year horizon

Down 20%, rate 5.25%, utilities $450 condo, taxes $3,600, equivalent rent $2,100/month.

Verdict: 🔑 Renting earns ≈ $35,000 (too short a time horizon to absorb the selling costs).

EXAMPLE 2 — QUEBEC

Family, house $380,000, 15-year horizon

Down 15%, rate 5.0%, taxes $3,400, maintenance 1.5%, equivalent rent $1,750/month.

Verdict: 🏠 Buy wins $≈ $80,000 (leverage + duration).

EXAMPLE 3 — THETFORD MINES

Single, house $220,000, 10-year horizon

20% Deposit, 5.15% Rate, Taxes $2,600, Equivalent Rent $950/month, 6% Yield.

Verdict: 🏠 Buying earns ≈ $45,000 (low rents but favourable price/rent ratio).

Price-to-rent ratio in Quebec’s main cities

The calculator applies to all of Quebec, but the thresholds where buying becomes profitable vary by city. In Montreal and Laval, the price/rent gap is high: renting + investing often wins up to 10 years. In Quebec, Lévis, Sherbrooke, Trois-Rivières, Saguenay, Gatineau, Thetford Mines, and Drummondville, the ratio is more favorable to buying — a $200,000 to $320,000 property pays off quickly when rents are relatively low. For an informed decision, combine the calculator with a Assur360 home insurance quote: you will have the true annual cost of ownership.

Frequently asked questions

Is buying a house always a good investment?

No. Buying becomes a good investment when 3 conditions are met: a holding period of at least 7 years, a down payment of 20% (to avoid CMHC premiums), and a reasonable price/rent ratio in your area. In a short-term horizon or in a market that is very expensive compared to rent (e.g., Montreal, Toronto), renting + investing can outperform buying. Our calculator gives you the numerical answer for your case.

What is Ben Felix’s 5% rule (YouTube)?

The 5% rule states that a homeowner pays about 5% of the value of their home per year in non-recoverable costs (mortgage interest ≈ 2%, taxes + maintenance ≈ 2%, opportunity cost of the down payment ≈ 1%). If your equivalent annual rent is less than 5% of the purchase price, renting is financially advantageous. Example: house $400,000 → $20,000/year = $1,667/month threshold. If you can rent for less than $1,667, rent.

Should tax be included in the comparison?

In Canada, the sale of your primary residence is tax-exempt on capital gains. For renters, if you invest in a TFSA, the gains are also tax-free — the comparison is fair. If you invest in a non-registered account, adjust the return downwards (e.g., 6% gross → 4.5% net after tax on dividends and capital gains). Our calculator asks for an “after-tax” return to avoid this bias.

Why 3% for maintenance? My house hasn’t cost anything in 5 years.

Because maintenance occurs in waves. Roof (30 years): $15,000. Windows (25 years): $20,000. Heating/heat pump (15 years): $10,000. Paved driveway (20 years): $8,000. French drain (30 years): $15,000. Kitchen/bathroom (25 years): $40,000. Averaged over 30 years, this represents ≈ $3,500 per year on a $400,000 house, or 0.9%. Add in unforeseen expenses and minor repairs, and 1.5% becomes realistic, 3% prudent for older homes.

Quebec real estate is rising by 10%/year, why not use that?

The increases from 2020-2022 were pandemic anomalies (low rates, pent-up demand, remote work). Over 20 years (2005-2025), the real appreciation (adjusted for inflation) in Quebec is 2.5% to 4%. Statistics Canada and CMHC confirm this figure. Using 8-10% guarantees that the calculator favors buying — it is not realistic. Stick to 3%.

Is home insurance really mandatory for a homeowner?

Not legally — but all financial institutions require it as a condition of the mortgage. Without it, your lender may refuse to release the funds. Even if paid in cash, an uninsured home leaves your assets exposed to a major loss (fire, water damage, vandalism). Average premium in Quebec: $900 to $1,500/year for a $400,000 home. Compare in 3 minutes with Assur360.

Can I use this calculator for a duplex or triplex?

Partially. A plex changes the game: the rents collected offset all or part of the expenses, and the tax yield (deductible expenses) is different. For a plex, use dedicated tools like real estate investment calculators and consult an accountant. Our calculator is primarily aimed at occupancy as a primary residence.

What mortgage rate should I use — the rate from my offer or a median rate?

If you are in the process of buying, use the rate confirmed by your mortgage broker. If you are doing a general simulation, take the median 5-year fixed rate from the Bank of Canada (published weekly). Be aware that at each renewal (every 3-5 years), the rate may go up or down — try this calculator with several rates to test the sensitivity of your decision.

Should I put 20% down or less, according to the calculator?

It depends. Advantages of 20%: no CMHC insurance (savings of $10,000 to $15,000 on a $400,000), lower monthly payments, psychological cushion. Advantages of 5-10%: keep cash for investments (TFSA), maximum leverage, possibility of entering the market sooner. The rule: if your investments yield more than the mortgage rate + 4% (amortized CMHC cost), a low down payment is mathematically advantageous. Consult a financial planner for your case.

Does this calculator replace a financial advisor?

No. It provides an initial objective reading to position you, but your final decision must incorporate your investor profile, your job security, your family goals, your risk tolerance, and your personal taxation. Consult a certified financial planner (IQPF) and a mortgage broker before signing a purchase offer. Assur360 assists you with the insurance aspect — not for financial advice.

Why trust Assur360?

✓AMF certified firm

✓ Insurance Chamber Member Brokers

✓100,000+ submissions processed

✓13 partner firms in Quebec

✓Independent — 30+ insurers compared

✓Sources: CMHC, Bank of Canada, StatCan

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Last updated: June 25, 2026

Landlord or tenant calculator 2026: should I buy or rent?