What rent does a $1,050,000 rental need in Canada?
About $6,950/month CAD to break even, and $7,175/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% | $6,400 / $6,625 | $6,075 / $6,300 |
| 4.5% | $6,675 / $6,900 | $6,325 / $6,550 |
| 5% | $6,950 / $7,175 | $6,575 / $6,825 |
| 5.5% | $7,225 / $7,475 | $6,850 / $7,075 |
The 1% rule would ask for $10,500/month. It's a quick screen only — taxes, insurance and the rate decide the real answer.
Quick check
Canada · CAD
Monthly cash flow
$207/mo
Preliminary verdict
Proceed with caution
Cash flow is positive, but the cushion over the mortgage is thin.
- Cash flow
- $207/mo
- Cap rate
- 5.82%
- 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