HouseDeltas

what owning really costs

Educational estimates, not financial advice.

HouseDeltas — scenario summary

Price $900,000 · Down payment 20% · Other closing costs $5,000

Amortization period 25 yrs · Segment 1 rate 5.24% (until payoff)

Suite portion 50% at $2,200/mo, 8% vacancy

Property tax 0.7673110000000001% · Maintenance 1% · Insurance 0.25% · Utilities $400/mo

Appreciation 3%/yr · Rent growth 2.5%/yr · Investment return 5%/yr · Selling costs 5.800000000000001%

Educational estimates, not financial advice. Verify numbers with your lender, accountant, and lawyer before acting.

True cost of owning · year 1, after suite income & taxes
$2,774 /month sunk
$926/mo less than renting

Money you never see again — interest, taxes, upkeep and vacancy, minus what the suite brings in after tax. Principal isn’t counted: it stays yours. Renting the equivalent home would sink $3,700/mo incl. utilities.

Cash needed to close
$213,950
Down payment + land transfer tax + closing costs
Land transfer tax $28,950
Monthly cash out the door
$3,978
Mortgage + carrying costs − suite income after tax
Kept as principal $1,205Sunk $2,774
Unrecoverable costs saved by the suite
$2,242
Sunk cost with the suite vs. without it, /month, year 1
Interest covered by suite income
72.7%
Suite income after tax as a share of year-1 mortgage interest
$20K$40K$60K$80K15913172125
$0$500K$1M$1.5M$2Myr 1yr 5yr 9yr 13yr 17yr 21yr 25breakeven · yr 4$1.68Mowning + suite$518Krenting
If you sold along the way
If you sold in year 5
Home value$1,043,347
Remaining mortgage$639,632
Selling costs$60,514
Tax on rented-share gain$5,499
Net position−$117,761
If you’d rented and invested$284,035
$401,796 behind renting
If you sold in year 10
Home value$1,209,525
Remaining mortgage$535,543
Selling costs$70,152
Tax on rented-share gain$23,110
Net position−$124,427
If you’d rented and invested$351,830
$476,257 behind renting
If you sold in year 15
Home value$1,402,171
Remaining mortgage$400,733
Selling costs$81,326
Tax on rented-share gain$43,526
Net position−$88,699
If you’d rented and invested$415,219
$503,918 behind renting
If you sold in year 25
Home value$1,884,400
Remaining mortgage$0
Selling costs$109,295
Tax on rented-share gain$94,630
Net position$151,190
If you’d rented and invested$518,163
$366,974 behind renting
Rent instead
$3,700 /mo sunk
Rent + the same utilities, 100% sunk — but your down payment stays invested.
Buy, no suite
$5,016 /mo sunk
Interest + carrying costs, year 1.
Buy + rent the suite
$2,774 /mo sunk
The suite saves $2,242/mo after tax.
Year-by-year table (full data)
YearInterestPrincipalCarrying costsSuite, after taxSunkMortgage balanceOwn — net worthRent — net worth
1$36,982$14,455$23,204$26,900$33,286$705,545$167,689$228,062
2$36,215$15,223$23,756$27,186$32,785$690,322$209,109$242,140
3$35,407$16,031$24,325$27,474$32,257$674,292$252,122$256,171
4$34,556$16,882$24,911$27,766$31,701$657,410$294,518$270,140
5$33,660$17,778$25,514$28,059$31,114$639,632$337,701$284,035
6$32,716$18,722$26,135$28,355$30,496$620,910$382,591$297,839
7$31,722$19,716$26,775$28,654$29,844$601,195$429,259$311,537
8$30,675$20,762$27,435$28,954$29,156$580,433$477,783$325,113
9$29,573$21,864$28,114$29,255$28,432$558,568$528,242$338,549
10$28,413$23,025$28,813$29,559$27,667$535,543$580,719$351,830
11$27,190$24,247$29,534$29,863$26,861$511,296$635,302$364,935
12$25,903$25,535$30,276$30,168$26,011$485,761$692,083$377,847
13$24,547$26,890$31,040$30,473$25,115$458,871$751,156$390,545
14$23,120$28,318$31,827$30,778$24,169$430,554$812,622$403,010
15$21,617$29,821$32,638$31,082$23,172$400,733$876,586$415,219
16$20,034$31,404$33,473$31,386$22,121$369,329$943,158$427,152
17$18,366$33,071$34,333$31,688$21,012$336,258$1,012,451$438,786
18$16,611$34,827$35,219$31,988$19,842$301,431$1,084,587$450,097
19$14,762$36,676$36,132$32,286$18,608$264,755$1,159,691$461,062
20$12,815$38,623$37,072$32,580$17,307$226,133$1,237,895$471,656
21$10,765$40,673$38,040$32,870$15,934$185,460$1,319,337$481,855
22$8,606$42,832$39,037$33,156$14,487$142,628$1,404,161$491,632
23$6,332$45,106$40,064$33,437$12,959$97,522$1,492,518$500,960
24$3,937$47,500$41,122$33,711$11,349$50,022$1,584,567$509,813
25$1,416$50,022$42,212$33,978$9,650$0$1,680,475$518,163