What rent does a $525,000 rental need in Canada?
About $3,475/month CAD to break even, and $3,725/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% | $3,200 / $3,450 | $3,050 / $3,275 |
| 4.5% | $3,350 / $3,575 | $3,175 / $3,400 |
| 5% | $3,475 / $3,725 | $3,300 / $3,525 |
| 5.5% | $3,625 / $3,850 | $3,425 / $3,675 |
The 1% rule would ask for $5,250/month. It's a quick screen only — taxes, insurance and the rate decide the real answer.
Quick check
Canada · CAD
Monthly cash flow
$220/mo
Preliminary verdict
Proceed with caution
Cash flow is positive, but the cushion over the mortgage is thin.
- Cash flow
- $220/mo
- Cap rate
- 6.09%
- DSCR
- 1.09
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