What is the Future Home Fund strategy? +
The Future Home Fund strategy asks: what if instead of taking on a mortgage, you invested the same monthly payment you would have made into the stock market? The simulator calculates your hypothetical mortgage payment, then models what happens when you invest that exact amount every month — starting with the down payment as your initial lump sum investment — and tracks how your investment portfolio compares to the outstanding mortgage balance over time.
How does this differ from a regular mortgage vs rent comparison? +
A standard mortgage vs rent calculator compares owning a home to renting and investing the savings. The Future Home Fund Simulator is specifically designed for young Canadians who are weighing whether to buy now or delay homeownership and aggressively invest instead. It models the scenario where you commit the same financial discipline you would apply to a mortgage — same down payment, same monthly outflow — entirely into investments rather than into a home.
What investment return should I use? +
The S&P 500 has historically returned approximately 10% annually before inflation, or roughly 7% in real (inflation-adjusted) terms. The default of 10% represents the long-run historical nominal average. For a more conservative estimate, try 6–7%. For a more aggressive or optimistic scenario, you could model 11–12%. Remember that past performance does not guarantee future results, and actual returns vary significantly year to year.
Why does the simulator use the down payment as the starting investment? +
When you buy a home, you commit your down payment as a lump sum on day one — it immediately leaves your hands. In the Future Home Fund scenario, that same amount is invested immediately as a lump sum instead, giving it the maximum time to compound. This is the most accurate apples-to-apples comparison: the same cash you would have used as a down payment is deployed on day one into your investment portfolio.
Does this mean renting and investing is always better than buying? +
Not necessarily. This simulator deliberately isolates one scenario — investing your mortgage equivalent — and does not account for home appreciation, the forced savings discipline of homeownership, emotional value of owning, rent stability, or the fact that many renters do not actually invest their savings. The true answer depends heavily on your local housing market, your investment discipline, your time horizon, and your personal goals. Use this as one input among many when making your decision.
What does the "Net Wealth Position" in the results mean? +
The Net Wealth Position is your total projected investment portfolio value minus the outstanding hypothetical mortgage balance at the end of the amortization period. A surplus means your investment portfolio grew larger than the mortgage debt you would have had. A deficit means the mortgage balance exceeded your portfolio value at that point. Over a full amortization (e.g. 25 years), the mortgage balance reaches zero, so the net position equals your total portfolio value.
