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Updated on September 26, 2024
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Canadians love to own their own homes. And, while many immigrants in Canada might aspire to join the ranks of homeowners, they may need to rent for a while before they can buy property in Canada. Indeed, it might even make sense to rent rather than own a home.
So, should you buy or rent a home as an immigrant in Canada?
For a long time, the majority of Canadians have chosen to buy their homes. As of 2021, . However, rental household growth of 21.5 percent over 10 years is now outpacing owner household growth of 8.4 percent.
There are significant pros and cons to renting or buying a home in Canada. Today, we’ll outline the pros and cons of renting or buying property in Canada.
The rules and practices of Canada’s rental market are largely dictated by your province and municipality. It’s a good idea to know provincial or local rental laws so that you understand what to expect (psst! we’ve a whole guide on renting in Canada right here).
Your rental budget in Canada generally depends on how much money you make each month. One states that your monthly rent should be no more than 30 percent of your monthly paycheque before taxes. This is typically easier in smaller cities and towns and may be more challenging in larger cities such as Toronto and Vancouver where the monthly rent for a 1-bedroom apartment can exceed $2,500.
Most of the time, renting a home or apartment in Canada involves signing a lease. The lease will dictate the terms of your contract with the unit’s landlord or property management company. If there are issues, each province has a that can offer resources or mediate disputes between landlords and tenants.
Having to build your credit history from scratch can be challenging and usually takes time and effort. The good news is, with Scotiabank’s new partnership with Nova Credit, eligible clients can now use their foreign credit history reports to apply for a higher credit limit on their credit card. You can learn more about this exciting partnership and all things related to credit .
So much goes into buying a home in Canada (psst! we’ve a whole guide on that too, right here). There are a few basics you need to know to get started on buying property in Canada
In Canada, home buyers need a cash to purchase a home – usually between 5 and 20 percent of the purchase price. Once you have money saved for a down payment, you must secure approval for a mortgage from a bank or mortgage lender. This is called the mortgage pre-approval process. At the end, you’ll know exactly how much the lender is willing to loan you, which will determine how much you can afford to spend on your home.
As you’re looking for homes, you can strike out on your own or work with a real estate professional (often called a realtor or real estate agent) to help guide you in your search. Depending on where you live, hiring a lawyer to review the final paperwork may also be mandatory.
Renting or buying a home in Canada is affected by many factors, including location, budget, family size, and employment. While many professionals can advise you on your rights and responsibilities as a homebuyer or tenant, the best decision is the one made with your personal or family circumstances in mind.
To ensure you know as much as possible to guide your decision, contact an advisor at . The Scotiabank team can provide guidance and advice at any point, working with you to ensure you have the financial support you need to navigate the process of finding your home in Canada.
Newcomers can earn up to $2,000* in value the first year with the Scotiabank StartRight® Program.
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