We hear this question every day from first-time buyers. Here is the real answer, with real numbers from NE Calgary.
Almost every family who visits our show homes asks the same question:
“Are we ready to stop renting and buy a home?”
It is a smart question. For some families, renting for one more year makes sense. For others, the math is already telling them to buy. Here is a clear, honest comparison so you can decide for yourself.
Two families
Let’s compare two families. Both have one young child. Both work in NE Calgary. Both have similar incomes.
Family A — keeps renting. They rent a 3-bedroom house in Saddle Ridge for $2,650 per month. With utilities, internet, and tenant insurance, the all-in cost is about $3,080 per month.
Family B — buys a Partners duplex in Homestead at $560,000. They put 5% down ($28,000). They get the federal GST refund ($28,000). Their mortgage is 25 years at about 4.5% interest.
Here is Family B’s monthly cost:
| Item | Cost per month |
| Mortgage payment | $2,950 |
| Property tax | $280 |
| Home insurance | $120 |
| Utilities | $400 |
| Total | $3,750 |
At first glance, Family B pays about $670 more per month than Family A. Renting looks cheaper. Most people stop the math there. But that is only half the story.
Where the money goes
When you pay rent, your money goes to the landlord. You will never see it again.
When you pay a mortgage, part of every payment becomes yours. This is called equity.
| Equity: The part of your home that you own. In year 1 of a $560,000 mortgage, about $11,000 of your payments becomes your equity. By year 5, you have built about $60,000 of equity. This is real money you can borrow against or take with you when you sell. |
There is also a second piece. Homes in Calgary usually go up in value about 2–3% per year over a 5-year period. A $560,000 home today will probably be worth $620,000 to $650,000 in five years.
After 5 years
Here is how each family looks after five years:
| Family A (renting) | Family B (Homestead) | |
| Total housing payments | About $200,000 | About $225,000 |
| Equity (what you own) | $0 | About $60,000 |
| Home value increase | $0 | About $60,000 to $90,000 |
| Where you stand | Spent $200,000 with nothing to show | Built $120,000 to $150,000 of wealth |
Family B paid about $25,000 more in five years. But they ended up with $120,000 to $150,000 more wealth than Family A. That is a real difference for your family’s future.
| “After 5 years, the renter is about $120,000 to $150,000 behind the homeowner, even though the rent looked cheaper every month.” |
When renting still makes sense
We will always tell you straight. Sometimes renting is the right choice. Keep renting if any of these sound like you:
- You might move out of Calgary in the next 1 or 2 years for work.
- You have not yet saved enough for the down payment and closing costs (about $35,000 to $45,000 in cash for a Homestead duplex).
- You are paying off high-interest debt like credit cards.
- Your job is too new for the bank to approve a mortgage.
If any of these apply, keep renting for now. Start saving in an FHSA. We have a full article on how the FHSA works alongside the GST refund.
The Homestead bottom line
Most renters in NE Calgary could buy in Homestead today. Many do not know it. The federal GST refund only became law in 2025. With $28,000 of GST money back plus the FHSA and Home Buyers’ Plan, the down payment is much easier to reach than it was 18 months ago.
The numbers in this article are examples. Your actual costs depend on your mortgage rate, down payment, lender, and the specific home you choose. Confirm with a mortgage professional before making a purchase decision.
