Renting vs Buying: Make the right move with Wise Move

Book low-cost moving services trusted by thousands of customers across Canada. Door-to-door delivery. Any home size. Same-day service. Fixed prices.

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  — furniture, electronics, antique, box, vehicle part etc.
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  • — Other vehicle

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• Boat

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• Piano

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• Pet

  — cat, dog, bird, horse, etc.
• Waste

  — office/house clearance, rubbish removal etc.
• Other

  — heavy, farm equipment, construction material etc.

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Thinking about whether to rent or buy a home in Canada? It’s one of the biggest financial and lifestyle decisions many people face.

With housing prices climbing and rent rising across Canada, it’s more important than ever to weigh your options carefully. Your decision ultimately comes down to three things, namely your budget, lifestyle preferences, and personal goals.

You may have rented all your life and are now looking for more control over your home. You may be entering retirement and hoping to downsize into a smaller, low-maintenance space.

Whatever your reason, this guide breaks down the pros and cons of renting vs buying in Canada so you can choose the option that best fits your lifestyle.

• Understanding the Canadian housing market
• Government incentives for first-time buyers
• Renting in Canada
• Buying a home in Canada
• Financial considerations of renting vs buying
• Lifestyle factors to consider before renting or buying
• Hybrid options that bridge the gap between renting and buying
• Making your final decision
• Ready to make your move

Understanding the Canadian housing market in 2025

Housing options across Canada

Housing options naturally vary by region.

• In the core of a metropolitan city, you see listings for condos and apartments. Rentals include lofts, apartments and the occasional suite. 
• Rural areas offer affordable, larger homes, cabins, and tiny homes. 

Your lifestyle preferences will play a big role in where and how you choose to live. Some people love the hustle, nightlife and culture that a city has to offer, while others may prefer rural, quiet surroundings, outdoor activities and tight-knit communities. 

The cost of housing

Housing costs in Canada continue to rise. Major cities like Toronto, Vancouver, Victoria, and Ottawa have the highest home prices in the country. Prices rise more slowly in smaller towns and rural regions. While property is more affordable there, prices remain consistently on the rise nationwide.

Rent increases are also happening across the country, but rental rates still vary more than home prices by province and city.

These affordability pressures are leading many Canadians to rent longer or delay home ownership. If you’re exploring home ownership, there are a few government programs for first-time buyers worth knowing.

Government incentives for first-time buyers in Canada

First Home Savings Account (FHSA)

A Canadian tax-free savings plan that allows first-time homebuyers to contribute up to CA$8,000 per year (to a lifetime maximum of CA$40,000) to save for their first home. 

The contributions are tax-deductible, and withdrawals for a qualifying home purchase are tax-free.

Tax credit for first-time buyers

In Canada, first-time homebuyers can claim a non-refundable tax credit of up to CA$1,500 (based on a CA$10,000 amount) to help offset closing costs, such as legal fees or inspections, when purchasing their first qualifying home.

Renting in Canada

Looking at the pros

1. Flexibility: Being a renter makes it easier to relocate to other cities and provinces. Beyond giving your notice and collecting a damage deposit, the logistics for renters looking to move are relatively simple. This is a huge advantage for students and young people living alone for the first time, newcomers, those with short-term jobs or low incomes.
2. Lower upfront costs: Renting doesn’t require a down payment, although most places require a damage deposit. There are also no property taxes, legal fees or maintenance expenses. Renters usually don’t have to worry about installation costs for wifi or cable.
3. Access to prime locations: Downtown living comes with its perks, and renting makes living in a city’s core accessible to a wider demographic. 

Looking at the cons

1. No equity building: Monthly rent payments go to the landlord instead of mortgage payments and ownership. 
2. Limited control: The landlord calls the shots when it comes to renovation restrictions, pets and decor or landscaping choices.
3. Rising rent prices: Some landlords raise the rent amount yearly, which can make long-term renting expensive over time. 

Overall, renting is best suited if:

• You’re looking for shorter-term housing contracts
• You’ve just arrived in Canada
• You're looking to save money for a future down payment, without a long-term commitment. 

Buying a home in Canada

Looking at the pros

1. Equity and investment potential: Your monthly payments contribute towards your home ownership, which creates long-term financial security. 
2. Stability: Home ownership means no risk of eviction. Fixed-rate mortgage payments stay the same, so you don’t have to worry about monthly payments going up. 
3. Freedom to personalize: When the home belongs to you, you can do whatever you want to it. Renovations, custom decor, landscape choices, and upgrades are your choice, and you can even rent out rooms if you like. 

Looking at the cons

1. High upfront and ongoing costs: Your down payments for purchasing homes can be anywhere between 5% and 20% of the total price. Closing fees, property taxes, maintenance and insurance are other costly factors of home ownership.
2. Less flexibility: Owning a home makes it harder to relocate quickly if needed, like for a job. If you are open to renting the home out to others, this can simplify things.
3. Market risk: Prices can drop suddenly, especially in a buyer’s market.

Home ownership is realistic for some people, but a dream for others. To own a home, you must have a large sum of money for a down payment, good credit history, and stable income. Owning is most suitable for those planning to stay in one place long-term.

Financial considerations when deciding to rent or buy in Canada

Monthly affordability

Depending on where you want to live, monthly rental costs can be as high (or higher) than a mortgage payment in a more affordable location. Also consider property tax and utility payments. 

Down payment savings

Based on your monthly income, calculate how long it might take to save for a property down payment. 

Interest rates

When mortgage rates rise, monthly payments increase because borrowers pay more interest on the loan. When rates fall, monthly payments decrease since less interest is charged.

Regional price gaps

Owning may only be realistic in affordable cities like Halifax or Saskatoon, but unattainable in Vancouver or Toronto.

Hot tip: Use online calculators like CMHC or Realtor.ca to estimate affordability.

Lifestyle factors that influence whether renting or buying is right for you

Career mobility

Renting may be more practical for contract workers who require location flexibility.

Family planning

Buying provides stability for families, whereas renting is better suited if you’re single or a short-term resident.

Community connection

Home ownership can strengthen ties to local schools, events, local extracurricular and recreational activities, public services and neighbourhood communities. 

Maintenance tolerance

Some people find it easier to call the landlord if something in the home needs attention, while others enjoy doing home repairs and having control of their environment. 

Hybrid options that bridge the gap between renting and buying

Some hybrid options are gaining traction in Canada and around the world: 

• Rent-to-own programs: With this arrangement, renters pay a portion toward future ownership.
• Co-ownership or shared equity models: Friends, family, or co-buyers split ownership costs.

These options can bridge the gap for people who want to build equity but can’t provide a large down payment.

Making your final decision 

Deciding to rent or buy a home involves factors that go beyond just financial considerations. 

• Assess how long you would like to stay in one place. Some may thrive with location stability, while others function better knowing they have some flexibility. 
• How stable is your job? Do you need flexibility to accommodate shorter contracts or potential relocations? 
• Is large debt a stressor for your nervous system, or can you lean into the long game and comfortably take on that responsibility?
• What stage of life are you in? Whether you are just moving out of your parents' house, approaching retirement, or any stage in between, visualize the most suitable setup for your current needs. 

Ultimately, the decision is highly personal, and there is no one-size-fits-all answer. The right choice for you depends on your timing, life goals and preferred location. Being well-informed and patient will help you choose with confidence and assurance.

Ready to make your move?

When you leap, either renting or buying, the next big step is the actual move. Moving can be overwhelming, and Wise Move is your go-to service provider to simplify the process. Use our platform to compare trusted moving companies, read verified reviews, and book the best moving team in Canada that fits your budget, timeline, and needs.

Renting vs Buying: Make the right move with Wise Move

Book low-cost moving services trusted by thousands of customers across Canada. Door-to-door delivery. Any home size. Same-day service. Fixed prices.

9.6 · 630 reviews

What are you moving?

• Item

  — furniture, electronics, antique, box, vehicle part etc.
  • — Furniture

    sofa, table, bed, bookcase, chest, drawer etc.
  • — Item

    packed item, electronics, bicycle, box etc.
• Move

  — home move, office move, storage move
  • — Home
  • — Office
  • — Storage
• Vehicle

  — car, motorcycle, RV, truck and other motor vehicles
  • — Car

    sedan, minivan, 4x4, pickup, sports car, coupe etc.
  • — Motorcycle

    chopper, superbike, moped, scooter etc.
  • — Other vehicle

    truck, bus, RV, tractor and other motor vehicles, etc.
• Boat

  — powerboat, sailboat, houseboat, jet ski, watercraft etc.
• Piano

  — grand piano, upright piano, digital piano etc.
• Pet

  — cat, dog, bird, horse, etc.
• Waste

  — office/house clearance, rubbish removal etc.
• Other

  — heavy, farm equipment, construction material etc.

Get Prices