The rent vs. buy debate is especially heated in Toronto where high prices meet high rents. Let's look at the numbers to see which makes more financial sense in 2026.
The Scenario
Comparing a $700K condo purchase vs. renting a similar unit at $2,800/month over 5 years.
Buying Analysis
Upfront costs: $50K down + $20K closing costs = $70K
Monthly costs: $3,800 (mortgage, condo fees, taxes, insurance)
5-year equity gain: ~$120K (assuming 3% annual appreciation)
5-year principal paydown: ~$65K
Net position: $185K equity - $70K initial = $115K gain
Renting Analysis
Monthly savings: $1,000 (vs. owning)
Invested at 6% annually: $70K initial + $1,000/month = ~$155K
Net position: $155K investment value
The Verdict
In this scenario, renting and investing wins slightly — IF you actually invest the difference. Most people don't. Plus, buying provides forced savings, stability, and leverage benefits.
Need help running your numbers? Call Sam at 647-784-7924.