It's More Expensive To Rent Than Own A Home In Canada & It's Costing Some People Big Bucks

If you're in a position to choose between buying or renting a home in Canada, you may want to become a homeowner if you like saving money.

A recent report from Royal LePage found that on average, homeowners paid $769 less per month than renters in the second quarter of 2021.

The data used in the study provides estimates of "fair market value", market rents, and property taxes for communities across Canada, for seven different house types.

"For those who are able to secure a sufficient down payment, it is more financially beneficial to buy a home in Canada than to rent over the long term, in 91 per cent of cases analyzed," said the study.

In the few instances where it was more beneficial to rent rather than own, the neighbourhoods were in expensive areas with luxury homes.

"Historically, home ownership has been very profitable for Canadians, many of whom have factored their real estate investments into their retirement planning," said Karen Yolevski, chief operating officer of Royal LePage Real Estate Services Ltd. "Owning a home is widely viewed as a means to save money and build equity."