House Rent Versus Buy Analyzer: Disclaimer

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House Rent versus Buy Analyzer
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Version
061112
Welcome, and don't worry. You don't have to be an Excel expert to use this spreadsheet!
All you need to do is answer the questions on the Questions tab and then go to the Results tabs to compare renting to buying a house.
Play with different scenarios and see which strategy is best for you!
DISCLAIMER
The author of these forms makes no representations or warranties regarding the outcome or the use to which these forms
are put and is not assuming any liability for any claims, losses, or damages arising out of the use of these forms.
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House Rent versus Buy Analyzer Questions
RRSP
Mortgage
Answer these questions in column L:
L
Your
Answers
GENERAL
What is today's date?
(e.g., 5-13-2012)
What is the property address?
(e.g., 123 Any Street, Hometown)
RENT OPTION QUESTIONS

What amount will you need to put as a last month's rent deposit?
What is the monthly rental payment?
What amount per month will you have to pay for utilities (heat and hydro) if any?
At what annual rate do you think your utilities will increase by?
What is the term of the lease (in years)?
At what annual rate do you think your rental payments will increase by?
5/13/12
123 Any Street, Hometown
$3,500
$3,500
$300
2.00%
25
1.00%
What is the combined amount of you and your spouse's unused RRSP deduction room at the start?
(Look at each of your Notice of Assessment for the last year's personal tax return)
$80,000
What are you and your spouse's combined future years' annual RRSP deduction limits estimated to be?
(It is generally 18% of your prior year's earned income to a max of $22,450 each in 2011 and $22,970 each in 2012)
$36,000
What is the average marginal income tax rate for you and your spouse?
(This is the rate of tax you would pay on each additional dollar of income and the refund rate for RRSP contributions)
40.00%
What is the average marginal income tax rate of you and your spouse estimated to be when you cash in your RRSP?
40.00%
How much can you and your spouse contribute to a Tax Free Savings Account (TFSA) at the start?
(NOTE: Each Canadian adult 18 and over can contribute $5,000 per year since 2009)
$40,000
How much can you and your spouse contribute to a TFSA each year?
(NOTE: Enter $5,000 if you don't have a spouse/common law partner or $10,000 if you do)
$10,000
At what annual rate do you think your TFSA will increase by?
3.00%
At what annual rate do you think your RRSP will increase by?
3.00%
At what annual rate do you think your investments outside your TFSA will increase by after taxes?
2.50%
BUY OPTION QUESTIONS

What is the purchase price of the house (including HST for new houses)?
What will other closing costs be? (land transfer tax, legal fees, mortgage loan insurance, etc.)
What amount do you have for a down payment and closing costs on the purchase?
What is the annual interest rate on the mortgage?
What is the amortization period of the mortgage (maximum 25 years)
$800,000
$30,000
$200,000
4.00%
25
At what annual rate do you think your house value will increase by?
2.00%
What real estate commission rate do you think you will pay on the sale of your house?
5.00%
What are the annual property taxes estimated to be in the first year?
$7,000
What are the property insurance premiums estimated to be in the first year?
$2,000
What are the annual maintenance costs estimated to be?
$5,000
What are the estimated annual heating (oil or gas) costs?
$2,400
What are the estimated annual hydro (electricity) costs?
$1,200
At what annual rate do you think your property taxes, maintenance, heat and hydro payments will increase by?
2.00%

Summary Results for:
INPUT SUMMARY
Date this analysis was prepared:
5/13/2012
RENT
Amount you are required to put down as last month's rent deposit
Monthly rental payment (exempt - no HST)
Monthly heat and hydro (if any)
Estimated annual percentage increase in utilities
The term of the lease in years
Estimated annual percentage increase in rental payments
Estimated opening room for you and your spouse/common law partner to contribute to a Tax Free S
Estimated annual room for you and your spouse/common law partner (if any) to contribute to a TFS
Estimated annual percentage increase in TFSA investments
Estimated annual percentage increase in regular investments after tax
$3,500
$3,500
$300
2.00%
25
1.00%
$40,000
$10,000
3.00%
2.50%
BUY
The purchase price of the house including HST is
$800,000
Total other closing costs (land transfer tax, legal fees, mortgage loan insurance etc.)
$30,000
Amount you are putting down against the purchase
$200,000
The amount of the loan (purchase price less down payment) is:
$630,000
The annual interest rate on the mortgage loan is
4.00%
Number of years the mortgage loan is for
25
Your monthly loan payment (principal & interest) is
$3,325
Annual rate you think your house value will increase by
2.00%
Estimated real estate commission on sale of house
5.00%
Your annual property taxes in the first year is
$7,000
Your estimated insurance premiums in the first year are
$2,000
Your annual maintenance costs in the first year are
$5,000
Your annual heating costs in the first year are
$2,400
Your annual hydro costs in the first year are
$1,200
Estimated annual percentage increase in property taxes, insurance, maintenance, heat and hydro payments
2.00%
Year
Year #
2012
1
2021
10
2031
20
2036
25
RENT
Rent Costs:
Down payment
Rental payments
Heat, hydro
Total Rent Costs (A)
3,500
42,000
3,600
49,100
45,934
4,301
50,235
50,739
5,244
55,983
-3,500
53,327
5,790
55,617
RENT Values
TFSA
Opening
Contribution
Growth (tax free)
Closing
0
40,000
1,200
41,200
143,783
10,000
4,613
158,396
310,583
9,565
9,604
329,752
411,335
10,000
12,640
433,975
INVESTMENT ACCOUNT
Opening
Contribution
Growth (after tax)
Closing
0
198,404
4,960
203,364
259,498
703
6,505
266,706
335,132
0
8,378
343,510
379,171
2,600
9,544
391,315
TOTAL TFSA and Investment Account (C)
244,564
425,102
673,262
825,290
Buy Costs:
Down payment
Closing costs
Principal payments
Interest payments
Property taxes
Insurance
Repairs and maintenance
Heating (Oil and gas)
Electricity (Hydro)
Total Buy Costs (B)
200,000
30,000
14,977
24,927
7,000
2,000
5,000
2,400
1,200
287,504
21,454
18,450
8,368
2,390
5,975
2,868
1,433
60,938
31,985
7,920
10,200
2,915
7,284
3,497
1,747
65,548
39,053
851
11,261
3,218
8,044
3,861
1,929
68,217
-238,404
-10,703
-9,565
-12,600
BUY
ANNUAL EXCESS COSTS OF BUY (A-B)

BUY Values
HOUSE VALUE
Opening
Growth
Closing
800,000
16,000
816,000
956,074 1,165,450 1,286,751

19,121
23,309
25,735
975,195 1,188,759 1,312,486
Mortgage balance
615,023
449,564
EQUITY IN HOUSE (D)
200,977
525,631 1,008,194 1,312,486
-43,587
100,529
EXCESS (DEFICIENT) VALUE EQUITY IN HOUSE (D-C)

Proceeds on sale of home
Real estate commission on sale
Net proceeds from sale of house
EXCESS (DEFICIENT) CASH ON SALE OF HOUSE
180,565
334,932
487,196
1,312,486
65,624
1,246,862
421,572
A
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89
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91
92
House Rent versus Buy Analyzer Results for:
AA
AB
AC
2018
7
2019
8
2020
9
2021
10
2022
11
2023
12
2024
13
2025
14
2026
15
2027
16
2028
17
2029
18
2030
19
2031
20
2032
21
2033
22
2034
23
2035
24
2036
25
Total
(Yr 1 to 25)
INPUT SUMMARY
5/13/2012
RENT
Estimated opening room for you and your spouse/common law partner to contribute to a Tax Free Savings Account (TFSA)
Estimated annual room for you and your spouse/common law partner (if any) to contribute to a TFSA
Estimated annual percentage increase in TFSA investments
$3,500
$3,500
$300
2.00%
25
1.00%
$40,000
$10,000
3.00%
2.50%
BUY
Year
Year #
2012
1
2013
2
2014
3
$800,000
$30,000
$200,000
$630,000
4.00%
25
$3,325
2.00%
5.00%
$7,000
$2,000
$5,000
$2,400
$1,200
2.00%
2015
4
2016
5
2017
6
RENT
Rent Costs:
Down payment
Rental payments
Heat, hydro
3,500
42,000
3,600
49,100
42,420
3,672
46,092
42,844
3,745
46,589
43,272
3,820
47,092
43,705
3,896
47,601
44,142
3,974
48,116
44,583
4,053
48,636
45,029
4,134
49,163
45,479
4,217
49,696
45,934
4,301
50,235
46,393
4,387
50,780
46,857
4,475
51,332
47,326
4,565
51,891
47,799
4,656
52,455
48,277
4,749
53,026
48,760
4,844
53,604
49,248
4,941
54,189
49,740
5,040
54,780
50,237
5,141
55,378
50,739
5,244
55,983
51,246
5,349
56,595
51,758
5,456
57,214
52,276
5,565
57,841
52,799
5,676
58,475
-3,500
53,327
5,790
55,617
RENT Values
TFSA
Opening
Contribution
Growth (tax free)
Closing
0
40,000
1,200
41,200
41,200
10,000
1,536
52,736
52,736
10,000
1,882
64,618
64,618
10,000
2,239
76,857
76,857
10,000
2,606
89,463
89,463
10,000
2,984
102,447
102,447
10,000
3,373
115,820
115,820
10,000
3,775
129,595
129,595
10,000
4,188
143,783
143,783
10,000
4,613
158,396
158,396
10,000
5,052
173,448
173,448
10,000
5,503
188,951
188,951
10,000
5,969
204,920
204,920
10,000
6,448
221,368
221,368
10,000
6,941
238,309
238,309
9,991
7,449
255,749
255,749
9,880
7,969
273,598
273,598
9,771
8,501
291,870
291,870
9,667
9,046
310,583
310,583
9,565
9,604
329,752
329,752
9,466
10,177
349,395
349,395
9,370
10,763
369,528
369,528
9,276
11,364
390,168
390,168
9,186
11,981
411,335
411,335
10,000
12,640
433,975
INVESTMENT ACCOUNT
Opening
Contribution
Growth (after tax)
Closing
0
198,404
4,960
203,364
203,364
1,764
5,128
210,256
210,256
1,626
5,297
217,179
217,179
1,490
5,467
224,136
224,136
1,354
5,637
231,127
231,127
1,221
5,809
238,157
238,157
1,088
5,981
245,226
245,226
958
6,155
252,339
252,339
830
6,329
259,498
259,498
703
6,505
266,706
266,706
579
6,682
273,967
273,967
457
6,861
281,285
281,285
337
7,041
288,663
288,663
219
7,222
296,104
296,104
104
7,405
303,613
303,613
0
7,590
311,203
311,203
0
7,780
318,983
318,983
0
7,975
326,958
326,958
0
8,174
335,132
335,132
0
8,378
343,510
343,510
0
8,588
352,098
352,098
0
8,802
360,900
360,900
0
9,023
369,923
369,923
0
9,248
379,171
379,171
2,600
9,544
391,315
TOTAL TFSA and Investment Account (C)
244,564
262,992
281,797
300,993
320,590
340,604
361,046
381,934
403,281
425,102
447,415
470,236
493,583
517,472
541,922
566,952
592,581
618,828
645,715
673,262
701,493
730,428
760,091
790,506
825,290
Buy Costs:
Down payment
Closing costs
Principal payments
Interest payments
Property taxes
Insurance
Electricity (Hydro)
Total Buy Costs (B)
200,000
30,000
14,977
24,927
7,000
2,000
5,000
2,400
1,200
287,504
15,587
24,317
7,140
2,040
5,100
2,448
1,224
57,856
16,222
23,682
7,283
2,081
5,202
2,497
1,248
58,215
16,883
23,021
7,429
2,123
5,306
2,547
1,273
58,582
17,571
22,333
7,578
2,165
5,412
2,598
1,298
58,955
18,287
21,618
7,730
2,208
5,520
2,650
1,324
59,337
19,032
20,872
7,885
2,252
5,630
2,703
1,350
59,724
19,807
20,097
8,043
2,297
5,743
2,757
1,377
60,121
20,614
19,290
8,204
2,343
5,858
2,812
1,405
60,526
21,454
18,450
8,368
2,390
5,975
2,868
1,433
60,938
22,328
17,576
8,535
2,438
6,095
2,925
1,462
61,359
23,238
16,666
8,706
2,487
6,217
2,984
1,491
61,789
24,185
15,720
8,880
2,537
6,341
3,044
1,521
62,228
25,170
14,734
9,058
2,588
6,468
3,105
1,551
62,674
26,196
13,709
9,239
2,640
6,597
3,167
1,582
63,130
27,263
12,642
9,424
2,693
6,729
3,230
1,614
63,595
28,374
11,531
9,612
2,747
6,864
3,295
1,646
64,069
29,529
10,375
9,804
2,802
7,001
3,361
1,679
64,551
30,733
9,172
10,000
2,858
7,141
3,428
1,713
65,045
31,985
7,920
10,200
2,915
7,284
3,497
1,747
65,548
33,288
6,617
10,404
2,973
7,430
3,567
1,782
66,061
34,644
5,261
10,612
3,032
7,579
3,638
1,818
66,584
36,055
3,849
10,824
3,093
7,731
3,711
1,854
67,117
37,524
2,380
11,040
3,155
7,886
3,785
1,891
67,661
39,053
851
11,261
3,218
8,044
3,861
1,929
68,217
200,000
30,000
629,999
367,610
224,259
64,075
160,153
76,878
38,412
1,791,386
(238,404)
(11,764)
(11,626)
(11,490)
(11,354)
(11,221)
(11,088)
(10,958)
(10,830)
(10,703)
(10,579)
(10,457)
(10,337)
(10,219)
(10,104)
(9,991)
(9,880)
(9,771)
(9,667)
(9,565)
(9,466)
(9,370)
(9,276)
(9,186)
(12,600)
(489,906)
800,000
16,000
816,000
816,000
16,320
832,320
832,320
16,646
848,966
848,966
16,979
865,945
865,945
17,319
883,264
883,264
17,665
900,929
900,929
18,019
918,948
918,948
18,379
937,327
937,327
18,747
956,074
956,074
19,121
975,195
975,195
19,504
994,699
994,699
19,894
1,014,593
1,014,593
20,292
1,034,885
1,034,885
20,698
1,055,583
1,055,583
21,112
1,076,695
1,076,695
21,534
1,098,229
1,098,229
21,965
1,120,194
1,120,194
22,404
1,142,598
1,142,598
22,852
1,165,450
1,165,450
23,309
1,188,759
1,188,759
23,775
1,212,534
1,212,534
24,251
1,236,785
1,236,785
24,736
1,261,521
1,261,521
25,230
1,286,751
1,286,751
25,735
1,312,486
0
1,186,190
115,290
1,301,480
BUY

BUY Values
HOUSE VALUE
Opening
Growth
Closing
Mortgage balance
615,023
599,436
583,213
566,330
548,759
530,472
511,440
491,633
471,018
449,564
427,236
403,998
379,813
354,643
328,448
301,185
272,811
243,282
212,549
180,565
147,277
112,633
76,578
39,053
EQUITY IN HOUSE (D)
200,977
232,884
265,753
299,615
334,505
370,457
407,508
445,694
485,056
525,631
567,463
610,595
655,072
700,940
748,247
797,044
847,383
899,316
952,901
1,008,194
1,065,257
1,124,152
1,184,943
1,247,698
1,312,486
(43,587)
(30,108)
(16,044)
(1,378)
13,915
29,853
46,462
63,760
81,775
100,529
120,048
140,359
161,489
183,468
206,325
230,092
254,802
280,488
307,186
334,932
363,764
393,724
424,852
457,192

487,196
1,312,486
65,624
1,246,862
421,572

Summary Results for:
INPUT SUMMARY
5/13/2012
RENT
Estimated amount of unused RRSP deduction room
Estimated annual RRSP deduction limit
Estimated marginal tax rate now
Estimated marginal tax rate upon RRSP withdrawal
Estimated annual percentage increase in RRSP investments
$3,500
$3,500
$300
2.00%
25
1.00%
$80,000
$36,000
40.00%
40.00%
3.00%
2.50%
BUY
Estimated annual percentage increase in property taxes, insurance, maintenance, heat a
Year
Year #
RENT
Rent Costs:
Down payment
Rental payments
Heat, hydro
RENT Values
RRSP
Opening
Contribution - current year
Contribution - prior year refund
Growth (tax free)
Closing
2012
1
2021
10
2031
20
$800,000
$30,000
$200,000
$630,000
4.00%
25
$3,325
2.00%
5.00%
$7,000
$2,000
$5,000
$2,400
$1,200
2.00%
2036
25
3,500
42,000
3,600
49,100
45,934
4,301
50,235
50,739
5,244
55,983
-3,500
53,327
5,790
55,617
0
80,000
0
2,400
82,400
328,124
10,703
7,293
10,384
356,504
643,269
9,565
6,492
19,780
679,106
831,796
12,600
6,165
25,517
876,078
Tax on cashing in RRSP

Cash on hand after RRSP cash-in (X)
350,431
525,647
INVESTMENT ACCOUNT
Opening
Contribution
Growth (after tax)
Closing (Y)
0
158,404
3,960
162,364
197,826
0
4,946
202,772
253,234
0
6,331
259,565
TOTAL RRSP and Investment Account
244,764
559,276
938,671 1,169,752
TOTAL Cash and Investment Account (X+Y)
286,511
0
7,163
293,674
819,321
BUY
Buy Costs:
Down payment
Closing costs
Principal payments
Interest payments
Property taxes
Insurance
Electricity (Hydro)
Total Buy Costs (B)
BUY Values
HOUSE VALUE
Opening
Growth
Closing
200,000
30,000
14,977
24,927
7,000
2,000
5,000
2,400
1,200
287,504
21,454
18,450
8,368
2,390
5,975
2,868
1,433
60,938
31,985
7,920
10,200
2,915
7,284
3,497
1,747
65,548
39,053
851
11,261
3,218
8,044
3,861
1,929
68,217
-238,404
-10,703
-9,565
-12,600
800,000
16,000
816,000
956,074 1,165,450 1,286,751

19,121
23,309
25,735
975,195 1,188,759 1,312,486
Mortgage balance
615,023
449,564
EQUITY IN HOUSE (D)
200,977
525,631 1,008,194 1,312,486
EXCESS (DEFICIENT) VALUE EQUITY IN HOUSE (D- -43,787

-33,645
180,565
69,523
142,734
1,312,486
65,624
1,246,862
427,541
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
House Rent versus Buy Analyzer Results for:
AA
AB
AC
2018
7
2019
8
2020
9
2021
10
2022
11
2023
12
2024
13
2025
14
2026
15
2027
16
2028
17
2029
18
2030
19
2031
20
2032
21
2033
22
2034
23
2035
24
2036
25
Total
(Yr 1 to 25)
INPUT SUMMARY
5/13/2012
RENT
Estimated amount of unused RRSP deduction room
Estimated annual RRSP deduction limit
Estimated marginal tax rate now
Estimated marginal tax rate upon RRSP withdrawal
Estimated annual percentage increase in RRSP investments
$3,500
$3,500
$300
2.00%
25
1.00%
$80,000
$36,000
40.00%
40.00%
3.00%
2.50%
BUY
Year
Year #
2012
1
2013
2
2014
3
$800,000
$30,000
$200,000
$630,000
4.00%
25
$3,325
2.00%
5.00%
$7,000
$2,000
$5,000
$2,400
$1,200
2.00%
2015
4
2016
5
2017
6
RENT
Rent Costs:
Down payment
Rental payments
Heat, hydro
RENT Values
RRSP
Opening
Contribution - current year
Contribution - prior year refund
Growth (tax free)
Closing
3,500
42,000
3,600
49,100
0
80,000
2,400
82,400
42,420
3,672
46,092
42,844
3,745
46,589
43,272
3,820
47,092
43,705
3,896
47,601
44,142
3,974
48,116
44,583
4,053
48,636
45,029
4,134
49,163
45,479
4,217
49,696
45,934
4,301
50,235
46,393
4,387
50,780
46,857
4,475
51,332
47,326
4,565
51,891
47,799
4,656
52,455
48,277
4,749
53,026
48,760
4,844
53,604
49,248
4,941
54,189
49,740
5,040
54,780
50,237
5,141
55,378
50,739
5,244
55,983
51,246
5,349
56,595
51,758
5,456
57,214
52,276
5,565
57,841
52,799
5,676
58,475
-3,500
53,327
5,790
55,617
82,400
11,764
32,000
3,785
129,949
129,949
11,626
17,506
4,772
163,853
163,853
11,490
11,653
5,610
192,605
192,605
11,354
9,257
6,396
219,612
219,612
11,221
8,244
7,172
246,250
246,250
11,088
7,786
7,954
273,078
273,078
10,958
7,550
8,748
300,334
300,334
10,830
7,403
9,557
328,124
328,124
10,703
7,293
10,384
356,504
356,504
10,579
7,198
11,228
385,509
385,509
10,457
7,111
12,092
415,169
415,169
10,337
7,027
12,976
445,510
445,510
10,219
6,946
13,880
476,554
476,554
10,104
6,866
14,806
508,330
508,330
9,991
6,788
15,753
540,862
540,862
9,880
6,712
16,724
574,178
574,178
9,771
6,637
17,718
608,303
608,303
9,667
6,563
18,736
643,269
643,269
9,565
6,492
19,780
679,106
679,106
9,466
6,423
20,850
715,845
715,845
9,370
6,356
21,947
753,518
753,518
9,276
6,290
23,073
792,157
792,157
9,186
6,226
24,227
831,796
831,796
12,600
6,165
25,517
876,078
Tax on cashing in RRSP
0
1,186,190
115,290
1,301,480
350,431
Cash on hand after RRSP cash-in (X)
525,647
INVESTMENT ACCOUNT
Opening
Contribution
Growth (after tax)
Closing (Y)
0
158,404
3,960
162,364
162,364
0
4,059
166,423
166,423
0
4,161
170,584
170,584
0
4,265
174,849
174,849
0
4,371
179,220
179,220
0
4,481
183,701
183,701
0
4,593
188,294
188,294
0
4,707
193,001
193,001
0
4,825
197,826
197,826
0
4,946
202,772
202,772
0
5,069
207,841
207,841
0
5,196
213,037
213,037
0
5,326
218,363
218,363
0
5,459
223,822
223,822
0
5,596
229,418
229,418
0
5,735
235,153
235,153
0
5,879
241,032
241,032
0
6,026
247,058
247,058
0
6,176
253,234
253,234
0
6,331
259,565
259,565
0
6,489
266,054
266,054
0
6,651
272,705
272,705
0
6,818
279,523
279,523
0
6,988
286,511
286,511
0
7,163
293,674
TOTAL RRSP and Investment Account
244,764
296,372
334,437
367,454
398,832
429,951
461,372
493,335
525,950
559,276
593,350
628,206
663,873
700,376
737,748
776,015
815,210
855,361
896,503
938,671
981,899
1,026,223
1,071,680
1,118,307
1,169,752
TOTAL Cash and Investment Account (X+Y)
819,321
BUY
Buy Costs:
Down payment
Closing costs
Principal payments
Interest payments
Property taxes
Insurance
Electricity (Hydro)
Total Buy Costs (B)
BUY Values
HOUSE VALUE
Opening
Growth
Closing
200,000
30,000
14,977
24,927
7,000
2,000
5,000
2,400
1,200
287,504
15,587
24,317
7,140
2,040
5,100
2,448
1,224
57,856
16,222
23,682
7,283
2,081
5,202
2,497
1,248
58,215
16,883
23,021
7,429
2,123
5,306
2,547
1,273
58,582
17,571
22,333
7,578
2,165
5,412
2,598
1,298
58,955
18,287
21,618
7,730
2,208
5,520
2,650
1,324
59,337
19,032
20,872
7,885
2,252
5,630
2,703
1,350
59,724
19,807
20,097
8,043
2,297
5,743
2,757
1,377
60,121
20,614
19,290
8,204
2,343
5,858
2,812
1,405
60,526
21,454
18,450
8,368
2,390
5,975
2,868
1,433
60,938
22,328
17,576
8,535
2,438
6,095
2,925
1,462
61,359
23,238
16,666
8,706
2,487
6,217
2,984
1,491
61,789
24,185
15,720
8,880
2,537
6,341
3,044
1,521
62,228
25,170
14,734
9,058
2,588
6,468
3,105
1,551
62,674
26,196
13,709
9,239
2,640
6,597
3,167
1,582
63,130
27,263
12,642
9,424
2,693
6,729
3,230
1,614
63,595
28,374
11,531
9,612
2,747
6,864
3,295
1,646
64,069
29,529
10,375
9,804
2,802
7,001
3,361
1,679
64,551
30,733
9,172
10,000
2,858
7,141
3,428
1,713
65,045
31,985
7,920
10,200
2,915
7,284
3,497
1,747
65,548
33,288
6,617
10,404
2,973
7,430
3,567
1,782
66,061
34,644
5,261
10,612
3,032
7,579
3,638
1,818
66,584
36,055
3,849
10,824
3,093
7,731
3,711
1,854
67,117
37,524
2,380
11,040
3,155
7,886
3,785
1,891
67,661
39,053
851
11,261
3,218
8,044
3,861
1,929
68,217
200,000
30,000
629,999
367,610
224,259
64,075
160,153
76,878
38,412
1,791,386
(238,404)
(11,764)
(11,626)
(11,490)
(11,354)
(11,221)
(11,088)
(10,958)
(10,830)
(10,703)
(10,579)
(10,457)
(10,337)
(10,219)
(10,104)
(9,991)
(9,880)
(9,771)
(9,667)
(9,565)
(9,466)
(9,370)
(9,276)
(9,186)
(12,600)
(489,906)
800,000
16,000
816,000
816,000
16,320
832,320
832,320
16,646
848,966
848,966
16,979
865,945
865,945
17,319
883,264
883,264
17,665
900,929
900,929
18,019
918,948
918,948
18,379
937,327
937,327
18,747
956,074
956,074
19,121
975,195
975,195
19,504
994,699
994,699
19,894
1,014,593
1,014,593
20,292
1,034,885
1,034,885
20,698
1,055,583
1,055,583
21,112
1,076,695
1,076,695
21,534
1,098,229
1,098,229
21,965
1,120,194
1,120,194
22,404
1,142,598
1,142,598
22,852
1,165,450
1,165,450
23,309
1,188,759
1,188,759
23,775
1,212,534
1,212,534
24,251
1,236,785
1,236,785
24,736
1,261,521
1,261,521
25,230
1,286,751
1,286,751
25,735
1,312,486
Mortgage balance
615,023
599,436
583,213
566,330
548,759
530,472
511,440
491,633
471,018
449,564
427,236
403,998
379,813
354,643
328,448
301,185
272,811
243,282
212,549
180,565
147,277
112,633
76,578
39,053
EQUITY IN HOUSE (D)
200,977
232,884
265,753
299,615
334,505
370,457
407,508
445,694
485,056
525,631
567,463
610,595
655,072
700,940
748,247
797,044
847,383
899,316
952,901
1,008,194
1,065,257
1,124,152
1,184,943
1,247,698
1,312,486
(43,787)
(63,488)
(68,684)
(67,839)
(64,327)
(59,494)
(53,864)
(47,640)
(40,894)
(33,645)
(25,887)
(17,611)
(8,801)
564
10,499
21,029
32,173
43,955
56,397
69,523
83,358
97,929
113,264
129,391

142,734
1,312,486
65,624
1,246,862
427,541
A
1
2
3
4
5
6
7
8
9
House Rent versus Buy Analyzer Assumptions

1. Loans are compounded on a monthly basis.
2. Loan payments are made at the end of the month.
3. TFSA, RRSP and investment account contributions assumed to take place at the beginning of the year.
4. When the spreadsheet refers to "Spouse" it means your spouse, common-law partner or live-in partner.
J
1
2
3
4
5
6
account contributions assumed to take place at the beginning of7 the year.
8
to "Spouse" it means your spouse, common-law partner or live-in
9 partner.
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
House Rent versus Buy Analyzer - Mortgage Loan

Assumptions
Original loan balance
Loan annual interest rate
Term (years)
Term (months)
Calculations
Original loan monthly payment
Annual payment for loan
Term (years)
Term (months)
$630,000.00
4.00%
25
300
$3,325.37
$39,904.47
25.00
300.00
Note: Interest compounds monthly, payments at end of period

Loan amortization schedule
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Loan
Principal
Balance
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
-$615,022.94
-$599,435.68
-$583,213.38
-$566,330.15
-$548,759.08
-$530,472.14
-$511,440.15
-$491,632.78
-$471,018.42
-$449,564.20
-$427,235.90
-$403,997.91
-$379,813.17
-$354,643.11
-$328,447.58
-$301,184.81
-$272,811.30
-$243,281.82
-$212,549.26
-$180,564.61
-$147,276.85
-$112,632.90
-$76,577.50
-$39,053.15
Loan
Principal
Balance
(Formatted)
$615,022.94
$599,435.68
$583,213.38
$566,330.15
$548,759.08
$530,472.14
$511,440.15
$491,632.78
$471,018.42
$449,564.20
$427,235.90
$403,997.91
$379,813.17
$354,643.11
$328,447.58
$301,184.81
$272,811.30
$243,281.82
$212,549.26
$180,564.61
$147,276.85
$112,632.90
$76,577.50
$39,053.15
Interest
Payments
$24,927.40
$24,317.21
$23,682.16
$23,021.24
$22,333.39
$21,617.52
$20,872.48
$20,097.09
$19,290.11
$18,450.25
$17,576.17
$16,666.48
$15,719.73
$14,734.40
$13,708.94
$12,641.69
$11,530.96
$10,374.98
$9,171.90
$7,919.81
$6,616.71
$5,260.51
$3,849.07
$2,380.11
Principal
Payments
$14,977.06
$15,587.25
$16,222.30
$16,883.22
$17,571.07
$18,286.95
$19,031.98
$19,807.38
$20,614.36
$21,454.22
$22,328.30
$23,237.99
$24,184.74
$25,170.06
$26,195.53
$27,262.78
$28,373.50
$29,529.48
$30,732.56
$31,984.65
$33,287.76
$34,643.95
$36,055.40
$37,524.35
Total
Payments
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
$39,904.47
25
40
A
25
B
2036
D
$0.00
$0.00
E
$851.31
F
$39,053.15
G
$39,904.47

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A

House Rent versus Buy Analyzer

House Rent versus Buy Analyzer Questions

Answer these questions in column L:

RENT OPTION QUESTIONS

123 Any Street, Hometown

BUY OPTION QUESTIONS

What are the annual maintenance costs estimated to be?

What are the estimated annual heating (oil or gas) costs?

What are the estimated annual hydro (electricity) costs?

House Rent versus Buy Analyzer

123 Any Street, Hometown

TOTAL TFSA and Investment Account (C)

ANNUAL EXCESS COSTS OF BUY (A-B)

956,074 1,165,450 1,286,751

EQUITY IN HOUSE (D)

525,631 1,008,194 1,312,486

EXCESS (DEFICIENT) VALUE EQUITY IN HOUSE (D-C)

House Rent versus Buy Analyzer Results for:

123 Any Street, Hometown

TOTAL TFSA and Investment Account (C)

ANNUAL EXCESS COSTS OF BUY (A-B)

EQUITY IN HOUSE (D)

EXCESS (DEFICIENT) VALUE EQUITY IN HOUSE (D-C)

House Rent versus Buy Analyzer

123 Any Street, Hometown

Tax on cashing in RRSP

TOTAL RRSP and Investment Account

TOTAL Cash and Investment Account (X+Y)

956,074 1,165,450 1,286,751

EQUITY IN HOUSE (D)

525,631 1,008,194 1,312,486

EXCESS (DEFICIENT) VALUE EQUITY IN HOUSE (D- -43,787

House Rent versus Buy Analyzer Results for:

123 Any Street, Hometown

Tax on cashing in RRSP

Cash on hand after RRSP cash-in (X)

TOTAL RRSP and Investment Account

TOTAL Cash and Investment Account (X+Y)

EQUITY IN HOUSE (D)

EXCESS (DEFICIENT) VALUE EQUITY IN HOUSE (D-C)

House Rent versus Buy Analyzer Assumptions

House Rent versus Buy Analyzer - Mortgage Loan

Note: Interest compounds monthly, payments at end of period

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