Home•Our Blogs•Buying

Renting vs. Buying in Canada: How to Decide What’s Best for You

Shrine Realty BrokerageShrine Realty Brokerage
Buying4 min readAugust 29, 2025
Renting vs. Buying in Canada: How to Decide What’s Best for You

Housing affordability continues to dominate headlines across Canada in 2025. With rents climbing to record highs and mortgage rates still higher than in the pre-pandemic era, it’s no surprise that many Canadians are asking the same question:

“When it comes to renting vs buying in Canada, which is actually the smarter move right now?”

The truth is: it depends. The answer isn’t one-size-fits-all — it varies based on your city, your finances, and your future plans. In this guide, we’ll break down the rent vs. buy debate with the latest Canadian market insights, and give you a clear framework to help decide what makes the most sense for you.

The State of Renting in Canada (2025)

Renting is more expensive than ever. In Toronto, the average rent for a one-bedroom apartment reached $2,031/month as of August 2025, according to apartments.com market trends.  Across Ontario, average rents are $1,548 for studios, $1,892 for one-bedrooms, and $2,288 for two-bedrooms (apartments.com Ontario data).

Why are rents so high?

  • Limited supply: Rental construction hasn’t kept up with demand.

  • Population growth: Strong immigration has added pressure to housing markets.

  • Affordability squeeze: Many would-be buyers are renting longer due to higher mortgage rates.

Pros of renting:

  • Flexibility (easier to move cities or change homes).

  • Lower upfront costs (no down payment, no closing fees).

  • No responsibility for repairs or maintenance.

Cons of renting:

  • Rents can increase annually.

  • You don’t build equity — you’re paying off your landlord’s mortgage, not your own.

  • Limited control over your home (renovations, pets, etc.).

The State of Buying in Canada (2025)

Buying a home has its own set of challenges.

The Canadian Real Estate Association (CREA) reported that the national average home price was $672,784 in July 2025, up 0.6% year-over-year. CREA’s benchmark composite home price — representing a “typical” Canadian home — stood at $693,300, down 0.7% from the previous month and 3.4% year-over-year (Nesto housing market outlook).

When it comes to financing, major lenders like BMO and RBC are currently advertising 5-year fixed mortgage rates around 4.7%, while discount brokers such as True North Mortgage note best rates as low as 4.04%.

Pros of buying:

  • You build equity over time instead of paying rent.

  • Stability: no risk of eviction or rising rent.

  • Potential for appreciation if property values rise.

Cons of buying:

  • Higher upfront and ongoing costs (mortgage, property taxes, insurance, maintenance).

  • Less flexibility if you need to relocate.

  • Risk: if housing values drop, you may owe more than your home is worth in the short term.

Rent vs. Buy: A Cost Comparison

Let’s look at real-world scenarios:

Toronto Example

  • Renting a 2-bedroom apartment: ~$3,200/month (apartments.com Toronto trends).

  • Buying a condo at the city’s average price (~$720,000):

    • 20% down payment = $144,000.

    • $576,000 mortgage at 5.5% = ~$3,400/month.

    • Add ~$700 in condo fees + ~$300 in property taxes = ~$4,400/month total.

Here, buying costs about $1,200 more per month than renting — but part of that goes toward equity.

Calgary Example

  • Renting a 2-bedroom apartment: ~$2,200/month (apartments.com Calgary trends).

  • Buying a condo at ~$350,000:

    • 20% down = $70,000.

    • $280,000 mortgage at 5.5% = ~$1,700/month.

    • Add ~$500 condo fees + ~$200 taxes = ~$2,400/month total.

Here, renting and buying are almost equal, making homeownership a smarter choice if you plan to stay put.

Key takeaway: In major markets like Toronto or Vancouver, renting is often cheaper in the short term. But in cities like Calgary or Halifax, buying may be closer in cost than you think.

Who Should Rent vs. Who Should Buy in 2025?

Rent if…

  • You need flexibility (career, travel, or study).

  • You’re still building your down payment.

  • You’re not sure which city or community you want to settle in.

Buy if…

  • You plan to stay in the same area for 5+ years.

  • You have stable income and enough savings for a down payment.

  • You want to build equity instead of paying rising rents.

Final Thoughts: What's Right for you?

So, is it cheaper to rent or buy in Canada right now?

It depends. In big cities, renting may save money monthly, but buying helps build long-term wealth. In mid-sized markets, the gap between renting and buying is narrowing.

Ultimately, it’s about aligning your finances, lifestyle, and goals — not just chasing the cheapest option today.

How Shrine Realty Can Help

At Shrine Realty, we help Canadians like you crunch the numbers, explore financing options, and weigh the pros and cons based on your unique situation. Whether you’re renting and wondering if it’s time to buy, or ready to take the leap into homeownership, we’ll guide you with market data and personalized insights.

👉 Contact Shrine Realty today for a rent vs. buy consultation — and take the guesswork out of your next move: When you are ready we are ready to guide you, CLICK HERE to connect with us.

Tags:#Buying
Back to Journal