Rent vs Own in Montreal: What Happens to Your Money in 3 Years?

Smart urban living in Montreal — modern design, open layout, and space that works for your lifestyle.

If you're paying $1,500 per month in rent, have you ever stopped to calculate what that looks like over time?

Over 3 years:

$1,500 × 36 months = $54,000

That’s $54,000 spent — without building equity.

But owning also comes with costs. So let’s break down both scenarios using a realistic Montreal condo example.

The Ownership Scenario

Let’s assume:

• Purchase price: $300,000• Down payment: 10% ($30,000)• Mortgage: $270,000• Interest rate: 3.69%• Amortization: 30 years

Monthly Mortgage Payment

At 3.69% over 30 years, the monthly payment would be approximately:

~$1,240/month

That’s already lower than the $1,500 rent example.

But here’s the key difference:

Part of that payment goes toward principal — meaning you're building equity.

How Much Principal Is Paid in 3 Years?

In the first 3 years of a 30-year mortgage at 3.69%, you would pay down approximately:

$17,000–$20,000 in principal

That means after 3 years:

You don’t just “spend” money —You’ve converted part of your payment into ownership.

But Let’s Be Honest: Ownership Has Costs

Owning isn’t just mortgage payments.

Let’s factor in typical Montreal condo costs:

• Condo fees: ~$300/month• Property taxes: ~$2,000/year (~$167/month)• Home insurance: ~$40/month

Total additional monthly ownership costs:~$507/month

So total estimated monthly ownership cost:

$1,240 mortgage

• $507 expenses= ~$1,747/month

Now we compare properly.

Rent: $1,500Own: ~$1,747

Ownership costs more monthly — but builds equity.

Welcome Tax & Closing Costs

One-time costs when buying:

• Welcome tax (approx 1–1.5%) → ~$3,000–$4,000• Notary fees → ~$1,500• Inspection (if resale) → ~$500

These are upfront costs renters don’t pay.

But they are not recurring.

The Equity Factor

Now here’s where ownership changes the picture.

After 3 years:

✔ ~$18,000 principal paid✔ If property appreciates even 3% per year:

$300,000 at 3% annually = ~$327,000 in 3 years

That’s ~$27,000 in appreciation.

Combine appreciation + principal:

~$45,000 in equity growth.

Renting for 3 Years

$1,500 × 36 = $54,000

That money:• Does not build equity• Does not appreciate• Does not create asset value

It provides housing — but no ownership stake.

So What’s the Real Difference?

Over 3 years:

Renting:$54,000 spent, $0 equity.

Owning: Higher monthly cost, but potentially $40,000+ in equity built.

That’s a major difference in long-term wealth building.

When Renting Makes Sense

Renting may be better if:

• You plan to move within 1–2 years• You need flexibility• You’re not financially ready for upfront costs• Your income situation is uncertain

Ownership works best when you plan to stay at least 3–5 years.

The Real Question Isn’t “Rent or Own?”

It's: Does ownership align with your timeline and financial goals?

Because when structured properly, buying in Montreal can act as:

• Forced savings• Equity growth• Long-term wealth building

Final Thoughts

Montreal continues to offer entry-level condos around $300,000 — making ownership more attainable than many Canadian cities.

If you’re currently renting and wondering whether buying makes sense, the right move isn’t guessing — it’s running the numbers properly.

👉 Curious what ownership could look like for you?Get In touch with our team.