Rent vs Buy in Ottawa (2026)
Start from Ottawa's benchmark home price of $637,700 and average two-bedroom rent of $1,926, then change anything. The calculator simulates buying versus renting and investing year by year with Ottawa's property tax rate, CMHC insurance, Ontario land transfer tax and selling costs, and shows who ends up wealthier and when.
Where the lines cross is the year buying pulls ahead.
| Month one | Owning | Renting |
|---|---|---|
| Cash out each month | $3,995.39 | $1,951.00 |
| Of which is gone for good (interest, tax, upkeep, fees / rent) | $2,992.08 | $1,951.00 |
| Cash needed up front (20% down, land transfer tax, legal) | $138,335 | invested instead |
| When you sell in year 10: commission and legal | − $42,871 | — |
| Net worth after 10 years | $449,585 | $568,383 |
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 +$157,073 | Rent +$97,071 | Rent +$65,203 | Rent +$32,042 | Buy +$2,452 |
| 10 yrs | Rent +$302,819 | Rent +$185,957 | Rent +$118,798 | Rent +$45,168 | Buy +$35,466 |
| 15 yrs | Rent +$490,505 | Rent +$323,432 | Rent +$218,863 | Rent +$97,599 | Buy +$42,685 |
| 20 yrs | Rent +$734,558 | Rent +$528,862 | Rent +$387,041 | Rent +$212,015 | Buy +$2,902 |
| 25 yrs | Rent +$1,054,546 | Rent +$828,711 | Rent +$653,466 | Rent +$421,015 | Rent +$115,911 |
Year by year
| Year | Owner cost | Rent | Home value | Mortgage left | Owner net | Renter net |
|---|---|---|---|---|---|---|
| 1 | $47,945 | $23,412 | $657,140 | $498,360 | $125,923 | $171,168 |
| 2 | $48,371 | $23,897 | $676,854 | $485,823 | $157,188 | $205,912 |
| 3 | $48,811 | $24,393 | $697,160 | $472,768 | $189,534 | $242,685 |
| 4 | $49,264 | $24,899 | $718,075 | $459,173 | $222,998 | $281,611 |
| 5 | $49,730 | $25,415 | $739,617 | $445,017 | $257,619 | $322,823 |
| 6 | $50,211 | $25,943 | $761,805 | $430,276 | $293,439 | $366,460 |
| 7 | $50,706 | $26,481 | $784,660 | $414,925 | $330,501 | $412,671 |
| 8 | $51,215 | $27,031 | $808,199 | $398,941 | $368,849 | $461,616 |
| 9 | $51,740 | $27,593 | $832,445 | $382,296 | $408,527 | $513,460 |
| 10 | $52,281 | $28,166 | $857,419 | $364,963 | $449,585 | $568,383 |
Show the math
Owner: mortgage on $510,400 at 4.09% over 25 years; property tax 1.23% and maintenance 1% of the (growing) value, condo fees and insurance; land transfer tax $9,235 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.
Rent vs buy in Ottawa: three horizons
Benchmark home, 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 | $178,317 | $271,148 | Renting by $92,831 |
| 10 years | $381,271 | $511,478 | Renting by $130,208 |
| 25 years | $1,269,039 | $1,633,447 | Renting by $364,409 |
The answer flips with the assumptions: at 1% price growth over 10 years, renting wins by $259,016. Use the calculator to test your own rent, price and return expectations. See the main rent vs buy page for how the model works and its limits.
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.
Other cities
TorontoVancouverCalgaryEdmontonMontrealWinnipegHalifaxQuebec CityHamiltonKitchener-WaterlooVictoriaSaskatoonReginaLondon
If you decide to buy: what to line up first
Three programs change the down payment math and all need paperwork before closing.
Common questions
Frequently asked questions
- Is it cheaper to rent or buy in Ottawa?
- Month to month, owning the $637,700 benchmark home costs about $4,589.42 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%, renting comes out ahead by $130,208.
- How long do I need to stay in Ottawa for buying to pay off?
- In the default scenario renting stays ahead for the whole 10 years; buying needs faster price growth or a longer stay (after 25 years the gap is $364,409 in favour of renting).
- 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 $637,700 home cost to carry?
- About $4,589.42 a month in year one: the mortgage on $573,930 plus the CMHC premium at 4.5%, $652 of property tax, 1% of value a year for maintenance and $100 of insurance.
What changed in 2025 and 2026
- Buying a home in Canada as a non-resident: the ban until 2027 and the provincial taxes that stayThe federal foreign buyer ban runs to January 1, 2027 and is under review. Ontario's 25% tax (35% in Toronto), BC's 20% and Nova Scotia's 10% apply regardless. Exemptions and how each is charged.
- The Underused Housing Tax is gone for 2025 onward. Here is what still appliesNo UHT return or payment is needed for 2025 and later years. Returns for 2022, 2023 and 2024 are still owed, with penalties. Who was affected and what to do now.
Sources
Sources
Every figure on this page comes from one of these primary sources. Data last verified .
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