This calculator was covered in the first post on this blog and was originally found on mls.ca but has since been removed.
Here is an example of the calculator currently found on the RE/MAX site where I used some absurd numbers.
You should Buy!
It looks like you should Buy based on the assumptions you have given us.
Why? If you buy for $1940723.70 (the maximum you would qualify for) you will pay down your mortgage of $1690723.70 by $443034.79 over 10 year(s) with your Principal and Interest payments of $9833.33 per month, plus your property will increase in value by $0 for a total investment growth of $443034.79.
This total is greater than your total investment growth from renting, which is approximately $297690.39 after 10 year(s). This was calculated by growing the monthly savings from renting ($10000.00) plus your current downpayment of $250000.00 at a standard after-tax rate of 4% per annum.
Wow! According to this calculator buying a TWO MILLION DOLLAR house that will not appreciate is a better option than renting for free. The problem is the same as before the savings from renting are fully accounted for. Saving $10,000/month under a mattress will amount to $1.2 MILLION over 10 years.
Totally broken. Again.