Updated for 2026

Your Complete Guide to Housing in Canada

Understand renting, buying, mortgages, property taxes, and government programs — all in one place.

🏠 I want to learn about:

5.49%
Avg 5-Yr Fixed Rate
$40K
FHSA Lifetime Limit
5%
Min Down Payment
$60K
HBP RRSP Withdrawal

Explore Housing Topics

Click any card to jump to its detailed guide below.

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Renting in Canada

Know your rights, understand costs & avoid bad landlords

Renting is the first step for most Canadians. Whether you're a student, newcomer, or just not ready to buy, understanding your tenant rights and typical costs is crucial. Canada has strong tenant protections — but they vary significantly by province.

Average Rent by Major City (2026)

City1-Bedroom2-BedroomTrend
Toronto$2,400$3,100↑ Rising
Vancouver$2,600$3,400↑ Rising
Calgary$1,650$2,100→ Stable
Montreal$1,500$1,900→ Stable
Ottawa$1,800$2,300→ Stable

warning Common Mistake

Many renters don't know that in Ontario, landlords cannot increase rent by more than the provincial guideline (2.5% in 2026) for most units built before Nov 2018. Always check your province's rent control rules.

check_circle Renting is RIGHT for you if:

  • • You need flexibility to move for work
  • • You're saving for a down payment
  • • You don't want maintenance responsibilities
  • • You're new to Canada and exploring cities

cancel Renting is NOT ideal if:

  • • You have a stable job and want equity
  • • Monthly rent exceeds mortgage payments
  • • You want to customize your living space
  • • You plan to stay 5+ years in one city
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Buying a Home in Canada

Your step-by-step guide from saving to closing

Buying a home is the largest financial decision most Canadians will ever make. The process involves saving a down payment, getting pre-approved for a mortgage, finding the right property, and navigating closing costs that can add $15,000–$30,000+ to the price tag.

Down Payment Requirements in Canada

Home PriceMin Down PaymentExampleCMHC Insurance?
Under $500K5%$25,000 on a $500K homeYes — Required
$500K – $999K5% + 10%$50,000 on a $750K homeYes — Required
$1M+20%$200,000 on a $1M homeNot Required

💡 Pro Tip: Stack Your Programs

As a first-time buyer, you can use FHSA ($40K) + HBP from RRSP ($60K) + First-Time Home Buyer Tax Credit ($1,500) together. That's potentially $100K+ in tax-advantaged savings toward your down payment.

Frequently Asked Questions

Closing costs are typically 1.5%–4% of the purchase price. On a $500K home, that's $7,500–$20,000. This includes land transfer tax, legal fees, home inspection, title insurance, and moving costs.

You don't legally need one, but a buyer's agent is free — the seller pays their commission. They can negotiate better prices, navigate paperwork, and spot red flags in listings.

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Mortgages & Financing

Fixed vs variable, stress test & getting the best rate

A mortgage is a loan secured by the property you're buying. In Canada, the maximum amortization is 25 years for insured mortgages (under 20% down) and 30 years for conventional. You must pass the mortgage stress test at your rate + 2% or 5.25%, whichever is higher.

TypeRate (Feb 2026)ProsCons
5-Year Fixed5.49%Payment certainty, no surprisesHigher rate, costly to break
5-Year Variable5.10%Historically cheaper, cheaper to breakPayments can increase
3-Year Fixed5.29%Shorter commitment, renew soonerHigher rate than variable

All buyers must qualify at the higher of 5.25% or their actual rate + 2%. This ensures you can still afford payments if rates rise. It applies to ALL buyers, even those with 20%+ down payment.

Mortgage brokers can access dozens of lenders at once and often find rates 0.1%–0.3% lower than walking into your bank. They're free to use — lenders pay their commission. Especially useful for self-employed buyers or those with complex finances.

🧮 Try Our Mortgage Calculator →
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Condo vs House

The biggest lifestyle & financial trade-off in Canadian housing

Factor🏢 Condo🏡 Detached House
Entry Price (Toronto)~$550K~$1.1M+
Monthly Fees$400–$900/mo condo feesNone (but maintenance costs)
MaintenanceIncluded in condo fees100% your responsibility
AppreciationModerateStronger (land value)
PrivacyLimited (shared walls)Full privacy
AmenitiesGym, pool, conciergeNone included

⚠️ Watch Out: Special Assessments

Condo boards can levy special assessments for major repairs (roof, plumbing, etc.) that can cost $5,000–$50,000+ per unit. Always review the status certificate before buying a condo — it reveals the reserve fund health and any upcoming assessments.

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Property Taxes in Canada

The ongoing cost of ownership most buyers forget about

Property taxes are an annual tax paid to your municipality based on your home's assessed value. They fund schools, roads, fire services, and local infrastructure. Rates vary widely — a $500K home can cost $2,500/yr in Vancouver but $6,000/yr in Winnipeg.

CityRateTax on $500K Home
Vancouver~0.27%$1,350/yr
Toronto~0.63%$3,150/yr
Calgary~0.64%$3,200/yr
Ottawa~1.07%$5,350/yr
Winnipeg~1.23%$6,150/yr
🧮 Land Transfer Tax Calculator →
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Investment Properties

Building wealth through Canadian real estate

Buying a rental property can generate passive income and long-term capital gains. But there are important tax rules: rental income is fully taxed, you need 20% down minimum, and when you sell, 50% of capital gains are taxable (66.7% for amounts above $250K as of 2024 rules).

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Rental Income

Taxed at your marginal rate. Deduct mortgage interest, repairs, insurance & property tax.

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Capital Gains

50% inclusion rate on profit when you sell. No principal residence exemption.

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Down Payment

20% minimum for investment properties. No CMHC insurance available.

verified Government Programs for Home Buyers

FHSA

Save $8,000/year (up to $40K) tax-free for your first home. Contributions are tax-deductible AND withdrawals are tax-free.

Full FHSA Guide →

Home Buyers' Plan (HBP)

Withdraw up to $60,000 from your RRSP tax-free to buy your first home. Must repay over 15 years.

Full HBP Guide →

First-Time Home Buyers' Tax Credit

A non-refundable tax credit of $10,000 (worth $1,500 in tax savings) for qualifying first-time buyers.

Claimed on your tax return

Land Transfer Tax Rebates

Ontario offers up to $4,000 rebate. Toronto offers an additional $4,475 Municipal LTT rebate. BC offers a partial exemption.

Calculate Your LTT →

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