Renting vs Buying in Canada
Whether renting or buying is cheaper depends on local rents, prices, rates and how long you stay. Here are the official numbers to start from, and a calculator to test your own assumptions.
| Metro | Value |
|---|---|
| Vancouver B.C. | $2,364 |
| Victoria B.C. | $2,121 |
| Kelowna B.C. | $2,098 |
| Toronto Ont. | $2,045 |
| Calgary Alta. | $1,908 |
| Nanaimo B.C. | $1,895 |
| Halifax N.S. | $1,828 |
| Kitchener–Cambridge–Waterloo Ont. | $1,816 |
| Kingston Ont. | $1,763 |
| Oshawa Ont. | $1,762 |
The cost of buying
The 5-year posted mortgage rate is 6.19% (Nov 4, 2026). You need at least 5% of the first $500,000, plus 10% of any part of the price above $500,000. At $1,500,000 or more, the minimum is 20%. Below 20% down, an insurance premium is added to the mortgage.
The cost of renting
Rent is your main shelter cost. CMHC considers housing affordable below 30% of before-tax income. Rents for vacant units are usually higher than averages for existing tenants.
Run the numbers
Calculator
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Buyer's net worth after 10 years
$420,116
Home equity plus any monthly savings invested
Renter's net worth after 10 years
$344,535
Down payment and closing costs invested, plus monthly savings
Monthly mortgage payment: $2,769.24 on a $520,000 mortgage.
Growth rates are your assumptions, not forecasts. Ignores selling costs, taxes on investment income and changes in mortgage rates.
Rents in Canada now
In Toronto, the average purpose-built two-bedroom rent is $2,045 (October 2025 survey); in Vancouver it is $2,364 (October 2025 survey) and in Montréal $1,346 (October 2025 survey).
What tips the balance
- How long you plan to stay: buying and selling costs are spread over more years the longer you stay
- The gap between rent and the full cost of owning, including taxes, insurance and maintenance
- What your down payment would earn if you invested it instead
- Whether rates are likely to change at renewal
Today's borrowing costs
On new uninsured mortgages, Canadians paid an average of 4.58% (Aug 2026) for fixed terms of five years or more and 3.90% (Aug 2026) for variable rates, according to the Bank of Canada. Insured borrowers paid 4.12% and 3.74%.
The Bank of Canada's policy rate is 2.50% (Nov 11, 2026) and the banks' prime rate is 4.70% (Nov 11, 2026). Variable rates move with prime; fixed rates follow Government of Canada bond yields, with the 5-year yield at 3.46% (Nov 10, 2026).
Frequently asked questions
Is renting throwing money away?
Not necessarily. Much of an owner's early payments go to interest, taxes and upkeep, which are also unrecoverable. The better question is which option leaves you with more wealth over your time horizon.
Sources
Rules are summarized in our own words from official publications. Check the source and talk to your lender or a licensed professional before making a decision.
Informational only, not financial advice. Data as of the release snapshot generated 2026-11-12.