Rent vs buy
Is buying actually better?
Sometimes not, and a lender saying so out loud is rare enough to be worth something. If you are moving in two years the math usually favors renting.
Assumptions
Every one of these is a guess about the future. Change them and watch the answer flip — that is the most useful thing this tool does.
Fill in rent, price and a rate.
The workings
An illustration only, not advice and not a commitment to lend.
What it leaves out
Read this before you trust the number.
It ignores the tax treatment of mortgage interest, which can matter and depends entirely on your situation. It ignores what you might have earned investing the down payment instead. It assumes you stay the whole period, and that nothing breaks that is not covered by the maintenance figure.
And it cannot price the things that actually decide it for most people: whether you want to paint a wall without asking, and whether you plan to still be here in five years.
Rules of thumb
- Under three years, renting usually wins on cost alone
- Past seven, buying usually wins unless values fall
- In between it is close enough that the non-financial reasons decide it
- Anyone who tells you renting is always throwing money away is selling something
For professionals
Share this with your clients.
Put your name on it and send it to anyone. Free, nothing gated, and any inquiry that comes back is tagged to you.
If buying wins, find out what you qualify for.
And if it does not, we will tell you that too.
Not a commitment to lend. Subject to credit approval and underwriting.