What rent does a $1,200,000 rental need in Canada?
About $7,925/month CAD to break even, and $8,175/month for $200 of monthly cash flow — with 20% down at a 5% rate.
Assumes typical costs: property tax 0.8% and insurance 0.35000000000000003% of the price per year, 5% vacancy, 10% of rent for repairs, and a 25-year amortization with semi-annual compounding. Plug in your real numbers on the right.
| Rate | 20% down: break even / +$200 | 25% down: break even / +$200 |
|---|---|---|
| 4% | $7,300 / $7,550 | $6,925 / $7,175 |
| 4.5% | $7,625 / $7,850 | $7,225 / $7,450 |
| 5% | $7,925 / $8,175 | $7,525 / $7,750 |
| 5.5% | $8,250 / $8,500 | $7,825 / $8,075 |
The 1% rule would ask for $12,000/month. It's a quick screen only — taxes, insurance and the rate decide the real answer.
Quick check
Canada · CAD
Monthly cash flow
$215/mo
Preliminary verdict
Proceed with caution
Cash flow is positive, but the cushion over the mortgage is thin.
- Cash flow
- $215/mo
- Cap rate
- 5.80%
- DSCR
- 1.04
Counted
Mortgage (25-yr, semi-annual compounding), property tax ~0.8%/yr, insurance ~0.35%/yr, 5% vacancy, 10% of rent for repairs.
Not counted yet
Land transfer tax, legal fees, condo fees, a property manager, and your actual tax and insurance quotes. Add them in the full analysis.
How we calculate · An estimate to screen deals, not financial advice.
Other prices
Related: rental property calculator · DSCR calculator · cap rate calculator