Renting vs. Buying in Canada: The Pros and Cons

General Craig Barton 19 Nov

Renting vs. Buying in Canada: The Pros and Cons 

If you’re exploring your housing options in Canada, you’ve likely asked yourself the classic question: Should I rent, or is it time to buy? As a mortgage broker, I have this conversation with clients every day. The truth is, there’s no one-size-fits-all answer—but there is a path that’s right for your financial goals, lifestyle, and long-term plans.

Below, I break down the key pros and cons of renting and buying to help you make a confident, informed decision.

🏠 The Pros of Buying a Home in Canada

1. Build Equity Instead of Paying Someone Else’s Mortgage

Every mortgage payment you make gradually increases your ownership in a valuable asset. Over time, this equity can help you upgrade to a larger home, invest, or prepare for retirement.

2. Stable Monthly Payments (Especially with Fixed Rates)

Unlike rent, which can rise yearly, owning a home—particularly with a fixed-rate mortgage—gives you predictable payments and long-term stability.

3. Potential for Property Value Growth

Historically, Canadian real estate has appreciated over the long run. While markets have ups and downs, homeowners often see their net worth grow through property value increases.

4. Freedom to Renovate and Personalize

Paint, remodel, garden, add a suite—your home, your call. No landlord permission required.

5. Tax Advantages (If You’re Renting Out a Portion)

Homeowners who rent out part of their property may benefit from certain tax deductions related to rental income.

🏠 The Cons of Buying a Home in Canada

1. Upfront Costs Can Be Significant

Buying a home requires savings. You’ll need:

  • A down payment (minimum 5% in most cases)

  • Closing costs (typically 1.5% to 4% of the purchase price)

  • Moving and furnishing expenses

2. Maintenance Is Your Responsibility

From a leaky faucet to a new roof, homeowners must cover repairs and maintenance—and those costs can add up.

3. Less Flexibility

If your job situation changes, or if you’re not sure where you want to live long-term, selling a home too soon can be costly.

4. Market Fluctuations

While real estate generally appreciates over time, property values do fluctuate, and short-term dips are possible.

🏡 The Pros of Renting in Canada

1. No Maintenance or Repair Costs

Your landlord takes care of repairs, maintenance, and major upgrades—saving you time and money.

2. Greater Flexibility

If you’re exploring different cities, planning to travel, or unsure about your long-term plans, renting lets you relocate easily.

3. Lower Upfront Costs

Renting typically requires only:

  • First and last month’s rent (in most provinces)

  • A security deposit (in some provinces)

This makes renting more accessible for individuals still building savings.

4. Access to Amenities

Many rentals include benefits like gyms, cinemas, pools, and security, which could be expensive to replicate as a homeowner.

🏡 The Cons of Renting in Canada

1. No Equity Growth

Rental payments go to your landlord’s mortgage, not toward your own financial future.

2. Rent Increases

In many provinces, rent controls apply only to older buildings, and tenants may face annual increases or sharp jumps when moving to new units.

3. Limited Control Over Your Space

Renovations, pets, paint colors, and even hanging fixtures may require permission—or may be restricted altogether.

4. Risk of Eviction or Non-Renewal

Your landlord may decide to sell, renovate, or convert the property, leaving you searching for a new place.

So… Should You Rent or Buy?

Here’s a quick guideline I give many clients:

Buying may be right for you if:

  • You plan to stay in the same area for at least 3–5 years

  • You have stable income

  • You have savings for a down payment and closing costs

  • You want to build long-term wealth through real estate

Renting may be right for you if:

  • You need flexibility

  • You’re still building your savings

  • You’re unsure about your long-term location

  • You want to avoid maintenance responsibilities

Considering Your Options? Let’s Talk.

As a mortgage broker, my role is to help you understand your financing options, assess affordability, and determine whether homeownership makes sense for your situation—today or in the future.

If you’re curious about:

  • How much you can afford

  • What mortgage rates you qualify for

  • How to prepare financially to buy

  • Whether buying now makes sense in your market

I’d be happy to provide personalized guidance.

Reach out anytime—I’m here to help you make the best decision for your goals.