Finding an apartment in Canada can take a long time, especially if you are moving to a large city. This is also the place where the rents and the total cost of apartments are the highest, so read on to avoid being scammed and to avoid overpaying for your new place. So, how much are apartments in Canada? This depends on several factors.
The cost of the apartment that you will be paying depends on many factors, including the city/town the apartment is in, the province, how many rental units there are on the market in that area, and the number of people looking for apartments there. When it comes to buying/renting, renting is a much better option, at least until you find a good home to purchase and have settled into the Canadian ways.
Needless to say, the prices differ vastly across the market, so it is always our recommendation to settle in a less densely populated area first. You will find that the prices here are much more affordable and that you will be able to save on accommodation, food, and other necessities. When it comes to savings, it is always our recommendation to lead a modest lifestyle during the first year or so of your stay in Canada, as you will need to build up an emergency fund and some savings, to avoid headaches down the road.
Do Canadians Pay Monthly Rent?
Moving to Canada and then looking for a place to rent is probably the best idea there is. After all, you will want to sign a contract and have everything on paper – and photos of apartments and homes can be misleading and misrepresenting. For this reason, we always recommend you book a place first, on AirBnB or Booking.com, and then start looking for a place to stay in. You should book a place in the area where you would like to live.
This way, you can get to know the area and see if you like it or not. Renting a place for a few days or weeks also gives you a good chance to explore the area and see what kinds of apartments are available for rent. You can also get to know the prices of these units, and any other associated costs (such as the utilities, garbage disposal, etc.).
Please note that these costs may vary depending on the size of the unit you want to rent and the area that the apartment is in. When it comes to this, it is important to be modest, to help you keep your expenses under control in the first few months or even a year or two. This way, you will not find yourself in an uncomfortable position of having to leave a place because you can no longer afford it.
The average rent for 1 bedroom apartment in Canada is around CAD2,000 per month, but bear in mind that the price can be much higher or much lower, depending on where the apartment is. For example, the city of Edmonton will be on the cheaper side of the spectrum, with CAD1,300 per month, while Vancouver is CAD2,700 per month. This will also influence the prices of other services and products that you may have to pay, as it is clear that the food, utilities, and all other costs are much higher in bigger and more populous cities.
When looking for a place to live, saving on rent is not the only thing to pay attention to. You may need to pay a lot more for fuel or public transportation when renting a cheaper place. Try to consider all these things when looking for a place to stay in and follow your instinct – if a place looks too good to be true or too expensive, it is important to consider some other options. If you are a remote worker, you will find yourself in a great position, as you will be able to work from home, wherever the home may be.
How Does Temporary Accommodation in Canada Work?
When moving to Canada, it is important to find accommodation for the first few days or even weeks of your stay there. Finding a place to rent online can be tricky, so we recommend you start looking for temporary accommodation before you arrive there.
Simply planning on booking a hotel for the time since you arrive in Canada until you find a more permanent solution can be difficult, not to mention expensive. For this reason, you should find a small place, maybe even a room in a hotel or Airbnb, and save money this way. Apartment hunting in Canada can take a long time, especially considering how difficult it can be to find a place that is suited both to your needs and your pocket.
The sheer number of immigrants coming into the country every year pushes the prices of rentals up. Some are leaving cities for the sheer reason that the rent has become too expensive for them. When it comes to this, it is important to note that the busier a city is, the more expensive it gets, so finding a place outside of the city centre can be a big help and help you not overpay in the initial stages of your stay in Canada.
When you plan on moving to Canada, consider that the cost of rent will not be the only cost there is. You will also have to consider:
- the cost of childcare, if you have children
- cost of food, as going to the actual market can be too much for many, especially in the first few months
- cost of transportation (cost per person if you do not own a car, city buses are reliable and cover entire cities)
- cost of telecommunication
- the detailed cost of maintenance (an apartment for rent is yours to maintain, except for large maintenance costs)
- the cost of electricity, water, garbage, heating, and cooling (heating and cooling 3-bedroom apartments are going to be expensive)
Average Rent in Canada by Province
The average rent in Canada by province or the average asking rent is on the rise in all of Canada. Rental housing never went for a higher monthly cost, and the average cost is becoming more expensive, especially in major cities. The most expensive city when it comes to the rental price is Vancouver with more than CAD3,000 a month – an asking price much higher than the national average.
Add to this the cost of electricity, cost of insurance, cost of children, cost of gas (the median costs are usually higher in the largest cities), and living for a straight month in a large city in Canada is becoming unbearably expensive.
However, on a cost basis, it is not impossible to find an area with a relatively good cost of housing, cost of food, and cost of care for the youngest ones. The cost of housing can be half of what it is in the city centre just a few kilometres away and the property size can be bigger as well. The cost of housing limits people in many ways, so moving outside can reduce the cost of living overall and improve your life. This period is known to be a period of high price changes and migrations in any developed country – especially in the US and Canada.
This is a trend that could be seen from 2020 onwards. The rental market went crazy as many people went back home and many rental units were left vacant. Those with deeper pockets started purchasing the properties, in hopes of increasing their income, only to start listing one-bedroom units at much higher prices than the purchasing price or an approximate cost that is in line with the actual value of the property. It was for this reason that people started leaving city urban centres and going back to smaller places. Although the rental price and property prices there are on the rise as well, the cost of living may still be lower, and the cost of maintenance of a property like that can be lower as well. This all helps people save, making the suburbs and the areas around larger cities much more rent-friendly.
Here are the average rent costs in Canadian cities. You can notice high prices – a part of the reason why there is a higher influx of immigrants:
| Province | Studio Average Rent in CAD | One-bedroom units in CAD | Two-Bedroom Units in CAD | Three-Bedroom Units in CAD |
| British Columbia | 1,950 | 2,390 | 2,930 | 3,500 |
| Nova Ontario | 1,890 | 2,290 | 2,750 | 3,100 |
| Nova Scotia | 1,630 | 1,890 | 2,210 | 2,520 |
| Quebec | 1,490 | 1,720 | 2,140 | 2,410 |
| Alberta | 1,050 | 1,500 | 1,850 | 1,900 |
| Manitoba | 820 | 1,220 | 1,620 | 1,960 |
| Saskatchewan | 855 | 1,040 | 1,200 | 1,430 |
Please bear in mind that property tax increases will apply to all who purchase a place and that the average rent increase has been through the roof, with the biggest increase happening right after the 2020 pandemic. Rental rates have been on the rise by the maximum that provinces allow, which has brought an average rent rate to the point that some find it difficult to afford a place to live even on the outskirts of the biggest city in Canada. Still, the cost of living can surprise you in smaller places, as they are generally much more affordable, down to the cost of power and food. Cutting costs by moving to a smaller place can be the best way to cut them – as you do not compromise the quality of life or move back to a bachelor-style apartment.
How To Find Rental Houses and Apartments in Canada
Considering the number of tourists visiting Canada every year, it is no surprise that Canadian cities are full of hostels, motels, and hotels. When it comes to these, they offer accommodation at prices that are acceptable to Canadians, but this may not always be the case, especially for those coming from abroad, where income may not be as high as in Canada.
Furthermore, if you are moving to Canada and are looking for ways to save, it is important to note that you will only be able to do so by renting a place for a longer time and negotiating a price. Even before you arrive in Canada, look for ways to save and negotiate the prices, by contacting hotels and motels in the area, and see what the lowest fare is that they could offer to you for an extended stay or reduced services. Sometimes, not having access to the breakfast buffet or cleaning service sent to your room every day can reduce the price.
Another option, particularly popular among youngsters is online booking platforms such as Airbnb or Booking.com. These are not only such platforms – explore your Facebook marketplace and similar websites before you move to Canada, as they often have services and places that are much cheaper than hotels, etc. Some may not like staying in another person’s home, but this is a very good option, popular internationally.
How To Buy an Apartment in Canada
Needless to say, purchasing an apartment in Canada is a big deal for many. It is easy to see why: Canadian apartment prices or the prices of homes in general are very high, and you will have to commit yourself to paying the mortgage back for 20-30 years. When it comes to this, there is a lot to think about before committing yourself to a period this long, and you should consider all the pros and cons of owning a place first. Here are some more things to consider:
- The affordability of the place
- The right amount of money that you can reasonably afford to pay
- The budgeting for unexpected expenses as now you will own the place and will need to take care of fixing yourself
- Getting a mortgage pre-approved
- Finding and using a good broker and real estate agent
- Make a proposal price, if you believe that the asking price is too high
- Obtaining a certified mortgage approval
- Home inspection by a certified inspector, to ensure that you are getting what you are paying
- Signing the documents
- Owning the place and all the responsibilities that come with it
Look Into Affordability
When considering how affordable a place is going to be for you, it is important to understand how these payments will be made. When it comes to how high of a payment you will have to cash out every month, this is directly related to how high your mortgage is and how long the payback period will be. In general, the banks will use the information on your household income and expenses when estimating how much money you can reasonably afford to pay every month.
When it comes to these beware that any kind of loan that you may already have will reduce your possible mortgage rate and banks will normally not go beyond this rule to not overstress your finances and bring your loan into danger. Please beware that existing student loans, credit card debt, previous mortgage, and many more have to be reported to Canadian banks (they will have an insight into this anyways, and being truthful about this is a basis for a relationship based on trust).
Make a Sizable Down Payment
Another thing to consider before taking out a loan of this kind is the downpayment. In general, the downpayment in Canada is around 5% and you will have to provide loan insurance for any downpayment that is lower than 20%. If you are a foreigner and a non-resident, you will have to provide a 35% downpayment, so consider this as well. Different conditions apply for residents – please check in with larger banks in your area to see which.
Budget for Unexpected Expenses and Closing Fees
The financial aspect of purchasing an apartment does not end here. It is always advisable to consider all other expenses that you may have once you own the place. You can ask around, ask your relatives, parents, and even neighbours, and try to guess how much money you will have to put aside each year for fixings and regular maintenance. When it comes to these, you should count that some 1-3% of your home value goes on these expenses every year.
Newer homes will, naturally, cost less to maintain (closer to 1%) while older homes will cost more (close to 3%). Please beware of these costs before making an investment and taking out a mortgage for an amount that you can barely afford: you will need some breathing space, after all.
Here are some additional expenses that come with home ownership:
- Taxes and Insurance – Land Taxes, Property Taxes, Luxury Taxes, Home Insurance, …
- Fees – Bank appraisal fees, home inspection, legal fees, closing fees
- Ownership Costs – general maintenance of the property, regular maintenance, emergency maintenance, etc.
Get a Mortgage Pre-approval
Getting mortgage pre-approval will make you look like a serious buyer and will help you close on the deal faster than people without it could. We’ve mentioned before that finding a place in Canada can be difficult – this is an extra step that you can undertake to make sure you did all possible to help you purchase the property of your dreams.
When getting pre-approval make sure you understand that the pre-approval does not mean that you can get it issued to just about any amount. A loan of this size should not take up more than 44% of your monthly income. Before you get pre-approved and, before the final approval, you will need to have your finances stable – meaning no changes in wages or huge expenses. In general, a raise is seen as a good thing, but a doubling in wages without a change in the role you have in the company or getting a new work position may be seen as somewhat suspicious. In any case, let the things take their course.
Use a Seasoned Mortgage Broker and Real Estate Agent
You will also need a seasoned mortgage broker and real estate agent. The two can help you achieve your goals and find the best place you can. At the same time, they should be knowledgeable enough to estimate the value of the property and to ensure that you get the value that you are paying. They should also help you negotiate the price down if any problems with the property arise and should be able to lead you through all the technical and legal nooks and crannies of becoming the owner of a property.
Make a Proposal
Once you are all set with the preparation and the finances of the purchase, it is time to go hunting. When it comes to this, it is important to know what kind of apartment you are looking for. And while some may want a hot tub in the yard and a small pond in the backyard, others may need two bedrooms and a kids’ room. Before even heading out to check out the apartment, make sure that the listed details match what you are looking for.
Looking at an apartment or a house can take well over one hour, and the odds are that you will need to go through dozens of apartments before making your final decision or finding the one that just feels right. For this reason, make sure the apartment you are browsing online matches all that you need before heading out to see in it real life.
Obtain a Certified Mortgage Approval
Once your offer has been accepted, it will take 5-7 days to process your mortgage. And once you have it, the seller will get the money and you will get the ownership over your home. Pay attention that the closing of the deal will take about 1-4% of your new home’s total value. If you do not work alone, but rather with a broker or a real estate agent, you will avoid some common mistakes and spare yourself a few headaches.
Home Inspection and Appraisal
Before you get the official mortgage, you should consider having the home inspected and appraised. This will cost but can save a lot of headaches down the road. When it comes to the appraisal, they should be licensed and have a good understanding of the properties in the area. They should inspect the home and give you an honest opinion about it. The appraisal and the inspection will let you better understand the property that you are trying to purchase and you should be able to see what kinds of fixing or investments need to be made before you make the purchase. This way, you can also negotiate the price, if the necessary fixings are more expensive or simply not regular maintenance.
Sign Each Document
The signing of the documents will be the next and final step. For this, we recommend you hire an experienced real estate lawyer who can go through the contract and the paperwork one by one. They should also be able to guide you through the process and act as an intermediary between you and the seller. We especially recommend you find one if you happen to be a non-resident or have recently moved to Canada, as they can help you better understand the local regulations.
Own Your Apartment
After all of this is done, you are the owner of the home. It is a long journey and it does take a while to get all the paperwork done, but it is worth it. You can now move in and enjoy the fruit of your labour: the apartment or the house is yours now. When it comes to the other side of the ownership coin, you will have to pay the property taxes, take care of the property, etc. For this reason, we recommend you get in touch with the neighbours first, get to know them, join the HOA (if available in your region), and start gathering information on the utility company, garbage collection company, water company, local handymen, etc.
How To Get a Lease in Canada?
When looking for a long-term rental, you will be able to see that many landlords ask for proof that you can pay the rent before signing the lease with them. You may find this odd, as many countries do not have this kind of practice, but you may want to consider that this is a real possibility. So, what can you offer to your prospective landlord as proof that you can pay the rent?
- A paystub from your company
- A reference letter from the company informing the landlord that your wages are of a certain amount and that you will be able to afford the place and the costs connected to renting it
- A bank statement, stating your income or savings amount
Again, although somewhat unusual for some, this is a good practice that is supposed to keep the housing market stable. By proving that you can pay for the place, you are also securing that this is the place that you can afford and that this is a place that is aligned with your actual housing needs. The next step is to sign the lease.
Bear in mind that some landlords may simply prefer to rent to Canadians. Although this is not always the case, you should consider this a possibility and offer your paperwork, identity documents as well and proof of status in Canada to ensure them that you will not be gone within a few months. A common concern among landlords is that you could be gone within months, and they could end up having to look for a new tenant, which is not unheard of.
What To Consider When Looking For Accommodation in Canada?
When considering how much are apartments in Canada for students and adults, you will notice that there is a stark difference in prices, as places for students are smaller and tend to offer less luxury and comfort. Places for adults are larger and offer more amenities, which is often a good deal for many. When it comes to choosing a place, however, you will notice that not all places will match your preferences. When looking for a place in Canada, you should consider the following:
- The date your payments to the landlord will be realized
- How high the security deposit is
- Whether the place is furnished (saves time and money) or not (allows you to furnish it to your liking)
- The contract should clearly state what your rights and responsibilities are, as well as those of the person or company renting the place to you
- Consider that this may be a con, especially if you are not there in person – online renting is not non-existent, but it is worth considering additional risks that come with it
Payment Date
The payment date is important as it will allow you to make the payments every month at the same precise date. All you need to do, if you have automated payments, is to ensure you have the right amount of funds in your bank account at that particular date. When it comes to these, you will need to also consider the option or the possibility of moving the payment date to a later date: most people prefer their largest expenses to be paid just days after they receive their wage so that the funds are not spent up before the rent is charged to your account.
When it comes to regular dates when the rent can be paid, you can opt for the 1st of the month or the 15th of the month. This way, you have some flexibility, although most landlords will not accept payments on odd dates, such as the 23rd. Beware that automated payments may be delayed during national holidays, such as New Year’s and Christmas. The payments will be realized at the earliest possible notice.
Security Deposit
The security deposit may not exist in many countries. If this is the case with you, you should know that the security deposit is a form of insurance money that you pay to the landlord on top of the first month’s rent. The money is saved and is returned to you once your lease has expired and you wish to move out.
When it comes to possible situations where your security deposit is not returned to you, they mostly include not respecting the lease, smoking inside (prompting the landlord to have to repaint the place) and even breaking their furniture, leaving the place with any kind of damage, water damage, etc. Please beware that the security deposit can be a minimum of half a month’s rent, and sometimes as high as 2-3 rents all at once. Also, beware that the security deposit cannot be used to replace light bulbs or other smaller items and that usually it is the amount to the amount of damage that is kept, never more. Some landlords may refuse to give this money back to you for a variety of reasons, so make sure you know your rights.
Furnished a Place
In Canada, most places come fully furnished. When it comes to this practice, it is a great time and money saver. The furnishings can cost a lot, and it will take a considerable time to get everything you need. Moving into a place that has its furniture is, therefore, a good idea, and usually, you will get the furniture for a small increase in the rent price. It does not become yours, but you can use it for the duration of your lease.
However, some may prefer to furnish their place. If this is the case with you, you should consider finding a mix of new and used furniture Craigslist, Facebook Marketplace, and many more offer a chance to find used furniture at highly discounted prices, and if you live in a University city, check out Facebook groups for giving away used furniture: as most students do not have the time or the skills needed to sell their furniture, they give it away for free, but be fast – these items are gone in a matter of minutes.
Understand Your Rights as a Tenant
When moving to Canada, you should understand that this is a democratic country and that you have many rights there. They are guaranteed by the law, but this does not mean that every province protects your rights the same way. While in some, a 3-month notice is needed before you decide to move out, in some other provinces this time can be shorter or longer. Always consider what your rights (and responsibilities) are as a student and ensure that you get to enjoy them all.
Beware of Online Scams
When searching for accommodation in Canada, consider that you may come across fake ads and websites for properties that do not exist. Only use large websites, that you can trust, and use your network of people to ensure you get the best possible deal. When it comes to online scams, they will usually ask for payments even before the place is yours to ‘secure the spot’, or ‘pay for viewing’ and will offer to ‘reserve’ or ‘book’ a place in advance if you make your deposit payment within hours. All of these are red flags, so make sure you understand the reality of the situation and be careful with ANY payments before you see the place.
Finding the Most Affordable Place To Live in Canada
For example, the apartment cost in Canada Toronto is higher than in nearby suburbs or smaller towns. Still, by renting a place that is outside of the city core, you can save a lot of money and stress – urban cores can get very noisy and polluted. The issues persist in all larger cities in Canada, so unless it is of the essence for your work or daily life that you live in the city center, we recommend avoiding them. When it comes to living outside of the city, you will have to count on the commute and a whole range of other factors that may increase the cost of living for you. For this reason, find a balance between the two, and see what works the best for you.
Montreal is currently the most affordable big city in Canada to rent. Finding a place in the suburbs or one of the smaller places around Montreal is still even more affordable. However, this is not a particularly popular destination to move to, so this may be the reason why it is still affordable to live here. In any case, do your exploring and see what you can do to find a cheaper place. When it comes to those moving to Canada with an existing work contract, it is useful to ask the company whether they offer accommodation or whether they could help you find an affordable place to stay.
When it comes to some other programs, such as International Mobility Canada, employers on these programs will usually offer accommodation as a part of your stay in Canada. This is usually done to increase their competitiveness, but beware that a lot of this accommodation may be too small for many. Still, if you are coming to Canada for a limited time only, this is a great chance to tick that box off the list of things to do to help you settle in Canada. Agri programs and seasonal visa programs usually have the same kind of offer.
Canadian Housing: Renting and Payments
The news headlines are full of the housing crises and rent increases. While this is somewhat true, you should understand that there is no need to panic, as many provinces protect their tenants. When it comes to these, it is advisable to look into the rules and regulations in your province and to understand that just because your landlord wants to increase the prices, it does not mean that they have the right to do so.
Many provinces state that the period elapsed between two rent increases has to be at least 12 months and that your landlord has to let you know at least 3 months before the date of the official rate increase. Many provinces also set a limit to how high the increase can be, in percentages, and allow you the possibility to end the lease early if the rent increase is not something that you are comfortable with. British Columbia states that the rent increase cannot be higher than 2% and Ontario sets this limit to 2.5%.
Considering that the time the apartment is vacant can be used to increase the rent as well, it becomes logical that you should not experience the rent increase during the first year of your stay in place. This is also the length of the average lease, so it is useful to know that once the lease is over (and even before the last day under some circumstances), you can choose to renew the lease or simply extend your stay indefinitely, with a month-by-month arrangement with the landlord.
Check Out How to Find Accommodation in Canada | Prices, Rents, Condo, Hostel, Apartments, and Resources.
On the other side of the spectrum is the option to purchase the apartment. We generally do not advise this to be done in the first year of your stay in Canada, as you will need to get adjusted, may have some unexpected expenses, or may choose to move elsewhere, if the climate or the place simply does not do it for you. If you do decide to purchase a place of your own, consider taking a loan with a fixed interest rate (to avoid any negative surprises further down the road) and consider right-sizing the place – finding a place too big for your actual needs will just kick more money out of your pocket month after month.
How to Transport Your Belongings to Canada?
If you are moving abroad, moving your belongings can be a big deal. You can consider this to be a very hard thing to do, as finding the right company to do the job for you can be an ordeal. Considering that Canada is sea-locked on three sides, the only place you could reasonably easily ship your furniture from is the US – and most Canadian immigrants do not come from this area of the world.
You will need to find a single company to handle:
- Moving your belongings from your home to the nearest port
- Moving your belongings across the sea (the Pacific or the Atlantic Ocean)
- Moving your belongings from the Canadian port to your new place in Canada
This can be a hassle, and very costly, usually in the thousands of Canadian dollars for an average home. For this reason, many people decide to simply move to Canada and start fresh there – selling their furniture back in their country of residence or country of origin, and finding or purchasing new furniture once they are in Canada. This may work better for some than others, especially for students who need just the necessities themselves.
FAQs
Will It Be Tough to Lease an Apartment as A New Immigrant?
Finding a new apartment in Canada is generally not easy. When looking for one, we recommend you bring your paperwork to prove your status in Canada, as Canadian landlords prefer those who can rent a place for longer, and having a job in Canada and a PR status can help a lot. When it comes to arrival, we recommend seeking temporary accommodation first (hostels and online booking platforms generally have the lowest cost) and staying there until you find something more permanent.
What Is the Average Rent for 1 Bedroom Apartment in Canada?
The average price for a one-bedroom apartment in Canada is around CAD1,700. This is an average price, and you will find that some Canadian provinces (Alberta, Manitoba, and Saskatchewan) have a lower asking rental price. The cost of rent of the same unit in Nova Scotia, Ontario, and British Columbia will be higher. When it comes to the factors that influence the price of rent, the vicinity of larger cities, amenities, and newer flats will increase the rent and the costs: electricity costs, etc. go up with the rent and the apartment size.
How Much Do Houses Cost in Canada?
The cost of rent can only be matched by the price of homes in Canada. When it comes to this, the average cost of a new home in Canada is CAD650,000 and even more in some provinces. A part of the reason is the increase in the population: Canada welcomes many immigrants within its borders every year.
What Should I Know Before Moving to Canada?
Before moving to Canada you should know that property prices, both rental and to own, are a significant cost per month when compared to some other countries. Even a Bachelor’s apartment can be expensive in some regions, so we suggest exploring the market and weighing the pros and cons of prices in different areas. When it comes to these, you should consider apartment listings in both larger cities and smaller towns in the area of the city you would like to move to to get a good idea of what accommodation prices are like in Canada.
Final Thoughts
Purchasing a home in Canada is not that difficult, but it takes time and some funds. Renting one is much simpler, but this approach to housing is not for everyone. In any case, if you are just moving to Canada and would like to get to know how properties are managed and what accommodation options you have, you’ve come to the right place. This guide was supposed to present to you several basic models of renting/owning a place in Canada and make it easier for you to handle your responsibilities once here.