Why renting is better than buying in Canada
Published Oct 29, 2026
Renting vs buying in Canada is one of the biggest money decisions you’ll make. Owning a home builds equity, but renting has real advantages, especially in expensive markets like Vancouver and the rest of BC. Here’s why renting can be better than buying, and when buying makes more sense.
1. You don’t need a huge down payment
To buy in Canada, the minimum down payment is 5% of the first $500,000 of the price, plus 10% of the part between $500,000 and $1.5 million, and 20% for homes of $1.5 million or more. If you put down less than 20%, you’ll usually also pay for mortgage loan insurance. When you rent, your savings stay yours: in an emergency fund, an investment account or a future down payment.
2. No property transfer tax or closing costs
Buyers in BC pay property transfer tax: 1% on the first $200,000 of the price and 2% on the part up to $2 million, with higher rates above that. On a $650,000 home, that’s $11,000, before legal fees, inspections and moving. First-time buyers may qualify for an exemption. A renter’s upfront cost is a deposit of at most half a month’s rent: see how rent works in BC.
3. Repairs are your landlord’s job
A new roof, a broken furnace or a burst pipe can cost owners thousands. As a renter, your landlord is responsible for most repairs. See renter rights in BC.
4. Flexibility to move
Renting makes it easier to move for a new job, school or relationship, or to try a neighbourhood before you commit. Selling a home takes time and costs money.
5. Rent increases are capped in BC
If you stay in the same place, your landlord can only raise the rent once a year, by no more than the provincial limit. Owners face whatever interest rates, property taxes and strata fees do. See the BC rent increase rules.
6. Rents are easing in parts of BC
CMHC reported in 2026 that asking rents were still falling in Vancouver, Toronto and Calgary. Read will rent go down in BC? and compare average rent by city.
When buying makes more sense
Renting isn’t better for everyone. Buying can be the better choice if you:
- plan to stay in one place for many years
- have a stable income and a down payment saved, plus an emergency fund
- want to build equity and control over your home
- would otherwise not save or invest the money you’d put into a home
Renters also face risks owners don’t: a landlord can end a tenancy for reasons the law allows, such as moving in themselves.
Make renting work for you
- Know your rights as a renter.
- Claim the BC renter’s tax credit if you qualify.
- Protect your belongings with tenant insurance. Square One (sponsored) lets you get a quote online, and adds a $10 credit if you buy through our link. See which tenant insurance is best?
This is general information, not financial advice. For your own situation, talk to a qualified financial advisor.