Your average return will be $ per Year.
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The following assumptions are used for the above calculations:
Calculator is designed for use in Alberta. Accuracy is not guaranteed for use in other provinces unless you make an allowance for property transfer tax.
The Graph shows the annualized return comparing Buying over Renting. Positive numbers represent Buying is Better, negative for Renting.
There is no Property Transfer Tax in Alberta.
CMHC premium fee is applied to all mortgages.
Minimum down payment is 10% for Homes over $500,000 in value, Otherwise minimum down payment is 5%
Selling Costs allows for legal fees and Realtor® commission of 7% on first $100k and 3% on balance.
Primary Residences have no capital gain tax when you sell.
All numbers based on before tax income so no allowance is made for your personal tax rate.
The calculation assumes if you are not buying then the downpayment funds will be saved and / or invested with the specified return.
Standard Mortgage Amortization is 25 years.
No Allowance for Mortgage Penalty for early payout.
Calculation based on monthly payments and no allowance for any mortgage setup fee.
Historically property values double every 25 years according to CMHC which equates to 3% Appreciation per year on average.
Utilities are not included in rent.
Security Deposit is one month rent.
Closing costs are based on average legal fees for similar priced homes
This calculation accounts for many variables and while it is not an exhaustive list, it does cover the most common and relevant ones which is sufficient to give you an accurate insight if buying or renting is better for you.
As everyone situation is different it is always best to consult with a professional before making any large buying decision.