Is it cheaper to rent or buy in Ottawa?

Month to month, owning the $385,500 benchmark condo apartment costs about $2,816.34 in year one (mortgage, tax, maintenance, insurance) against $1,926 of rent. Over 10 years, with 3% price growth and the renter investing the difference at 5%, buying comes out ahead by $46,526.

How long do I need to stay in Ottawa for buying to pay off?

In the default scenario buying pulls ahead in year 6. Under that, land transfer tax, CMHC insurance and selling costs eat the gains.

What is the average rent in Ottawa?

$1,926 a month for a two-bedroom apartment in CMHC's October 2025 Rental Market Survey, which covers purpose-built rentals. Newer buildings and condos rented by owners are usually higher.

What does a $385,500 condo apartment cost to carry?

About $2,816.34 a month in year one: the mortgage on $346,950 plus the CMHC premium at 4.5%, $394 of property tax, 1% of value a year for maintenance and $100 of insurance.

Rent vs Buy in Ottawa (2026)

Start with Ottawa's numbers: a $385,500 benchmark condo apartment and $1,926 average two-bedroom rent. Change anything. The calculator plays out buying against renting and investing the difference, year by year, with Ottawa's property tax, CMHC insurance, Ontario land transfer tax and selling costs. It tells you who ends up with more, and when.

Start from a city's typical price and rentOttawa: MLS condo apartment benchmark (2026-07) and CMHC's average 2-bedroom apartment rent (2025-10). Change the price or the rent to match the place you would buy or rent.

Province

How long you'd stay

years

Buying

Price of the home

Down payment

Mortgage rate

Renting

Rent for a similar place, per month

Return on the money you invest instead

The down payment and any monthly savings

More options

Buying

Home price growth per year

Property tax per year (% of value)

Maintenance per year (% of value)

1% is the usual rule of thumb

Condo fees per month

Home insurance per month

Selling costs (commission, legal)

Mortgage rate after year 5

0 = same rate

Amortization

years

First-time buyer (land transfer rebate)?

Renting

Rent increases per year

0 = Ontario's 2026 guideline of 2.1%

Tenant insurance per month

Tax drag on the investments

0 if it sits in a TFSA or RRSP. 15 to 25% if non-registered

Buying wins by$55,793After 10 years, assuming the renter invests the $82,965 the buyer pays up front and the $506 a month that owning costs more than renting and earns 6% a year. Buying pulls ahead in year 4, so it is a bad idea if you might move before then. It flips if you can rent the same place for under $1,602 a month, or if prices grow less than 1.6% a year instead of 3%.

Owner net worthRenter net worth

Where the lines cross is the year buying pulls ahead.

Month one	Owning	Renting
Cash out each month	$2,456.77	$1,951.00
Of that, gone for good (interest, tax, upkeep, fees, or rent)	$1,849.75	$1,951.00
Cash needed up front (20% down, land transfer tax, legal)	$82,965	invested instead
When you sell in year 10: commission and legal	− $25,938	—
Net worth after 10 years	$272,005	$216,213

Owner: home value after selling costs, less mortgage$272,005

Renter: invested down payment and monthly savings$216,213

If you stay longer or shorter, or prices grow differently

Stay	Prices 0%/yr	Prices 2%/yr	Prices 3%/yr	Prices 4%/yr	Prices 5%/yr
5 yrs	Rent +$42,521	Rent +$6,219	Buy +$13,062	Buy +$33,125	Buy +$53,994
10 yrs	Rent +$55,543	Buy +$15,160	Buy +$55,793	Buy +$100,340	Buy +$149,125
15 yrs	Rent +$62,014	Buy +$39,068	Buy +$102,334	Buy +$175,701	Buy +$260,575
20 yrs	Rent +$59,153	Buy +$65,295	Buy +$151,099	Buy +$256,993	Buy +$387,021
25 yrs	Rent +$43,320	Buy +$93,314	Buy +$199,340	Buy +$339,976	Buy +$524,569

Year by year

Year	Owner cost	Rent	Home value	Mortgage left	Owner net	Renter net
1	$29,481	$23,412	$397,580	$301,516	$76,185	$94,012
2	$29,739	$23,897	$409,507	$293,931	$95,101	$105,495
3	$30,005	$24,393	$421,793	$286,032	$114,671	$117,437
4	$30,279	$24,899	$434,446	$277,807	$134,917	$129,864
5	$30,562	$25,415	$447,480	$269,242	$155,863	$142,802
6	$30,852	$25,943	$460,904	$260,324	$177,535	$156,279
7	$31,152	$26,481	$474,731	$251,037	$199,958	$170,326
8	$31,460	$27,031	$488,973	$241,366	$223,159	$184,975
9	$31,778	$27,593	$503,642	$231,295	$247,165	$200,258
10	$32,105	$28,166	$518,752	$220,809	$272,005	$216,213

Show the math

Owner: mortgage on $308,800 at 4.09% over 25 years. Property tax 1.23% and maintenance 1% of the growing value, plus condo fees and insurance. Land transfer tax $4,265 and legal fees up front. 5% selling costs at the end. Renter: pays rent rising 2.1% a year, invests the owner's up-front cash and, each year, whatever owning would have cost more than renting, at 6% tax-free. Net worth compares home equity after selling costs with the renter's portfolio. Not modelled: capital gains tax on the renter's portfolio at the end (the home is tax-free as a principal residence), utilities differences, and the value of stability or flexibility.

What you need to know for 2026

Ottawa's benchmark condo apartment price is $385,500 (2026-07), and $637,700 across all home types. CMHC's average rent for a two-bedroom apartment is $1,926 a month (October 2025 survey).
The price-to-rent ratio is 16.7: the benchmark home costs 17 years of rent. Above about 25, renting and investing tends to win over 5 to 10 years.
Ottawa's residential property tax rate is 1.23% of assessed value (2026), about $4,730 a year on the benchmark condo apartment (assessments lag market value, so the effective rate on price is lower).
Buying the benchmark condo apartment with 10% down means a $13,898 CMHC premium and $4,265 of land transfer tax in Ontario.
With 3% price growth and 5% investment returns, buying is ahead after 10 years by $46,526. At 1% growth renting wins by $31,405.

Rent vs buy in Ottawa: three horizons

Benchmark condo apartment, 10% down, 4.5% mortgage, 3% price growth, 3% rent growth, 5% investment return, 5% selling costs.

Stay for	Buyer's net worth	Renter's net worth	Better off
5 years	$107,855	$112,300	Renting by $4,445
10 years	$230,650	$184,124	Buying by $46,526
25 years	$767,788	$418,420	Buying by $349,368

The answer depends on the assumptions. At 1% price growth over 10 years, renting wins by $31,405. Try your own rent, price and return. The main rent vs buy page explains how the model works and where it falls short.

MLS HPI composite benchmark (+1.0% y/y). low confidence: City of Ottawa does not publish a reachable 2026 rate table on ottawa.ca; the 2026 Tax Policy report (pub-ottawa.escribemeetings.com DocumentId=305531) confirms a 3.75% levy increase and that final rates were set by by-law in May 2026 but lists no rates. Value shown is urban residential total (municipal + urban transit + education 0.153%) per secondary sources; verify against the 2026 tax rate by-law before use. Ontario: MPAC assessments frozen at fully phased-in January 1, 2016 current values for the 2026 tax year (mpac.ca/en/UnderstandingYourAssessment/AssessmentCycle), so assessed value is far below market value; apply this rate to 2016-CVA, not to today's price.

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Other cities

Toronto Vancouver Calgary Edmonton Montreal Winnipeg Halifax Quebec City Hamilton Kitchener-Waterloo Victoria Saskatoon Regina London

If you decide to buy: what to line up first

Three programs change the down payment math and all need paperwork before closing.

Open an FHSA now, even with nothing in it, so room starts accruing.Opening an FHSA ↗
Plan the Home Buyers’ Plan withdrawal (form T1036) with your RRSP issuer at least a few weeks before closing.Home Buyers’ Plan ↗
Tell your lawyer you are a first-time buyer so the land transfer tax rebate is claimed at closing.Ontario land transfer tax refund for first-time buyers ↗
Get a mortgage pre-approval and a rate hold (usually 90 to 120 days) before you shop.FCAC: getting pre-approved ↗

Common questions

Frequently asked questions

Is it cheaper to rent or buy in Ottawa?: Month to month, owning the $385,500 benchmark condo apartment costs about $2,816.34 in year one (mortgage, tax, maintenance, insurance) against $1,926 of rent. Over 10 years, with 3% price growth and the renter investing the difference at 5%, buying comes out ahead by $46,526.
How long do I need to stay in Ottawa for buying to pay off?: In the default scenario buying pulls ahead in year 6. Under that, land transfer tax, CMHC insurance and selling costs eat the gains.
What is the average rent in Ottawa?: $1,926 a month for a two-bedroom apartment in CMHC's October 2025 Rental Market Survey, which covers purpose-built rentals. Newer buildings and condos rented by owners are usually higher.
What does a $385,500 condo apartment cost to carry?: About $2,816.34 a month in year one: the mortgage on $346,950 plus the CMHC premium at 4.5%, $394 of property tax, 1% of value a year for maintenance and $100 of insurance.

What changed in 2025 and 2026

Sources

Every figure on this page comes from one of these primary sources. Data last verified September 7, 2026.

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Data verified for tax year 2026: September 7, 2026 Updated September 7, 2026 By Nishant Malik, founder of GlassLayer

Rent vs Buy in Ottawa (2026)

Rent vs buy in Ottawa: three horizons

Other cities

If you decide to buy: what to line up first

Frequently asked questions

What changed in 2025 and 2026

Sources

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