In this climate of rising rents and declining mortgage rates, Canadians are wondering if this year is the year to buy or rent?

Buying vs Renting in Canadian Real Estate Market

The Canadian real estate market has seen a fluctuation in mortgage rates and rental costs in recent times. The beginning of the year saw a hold in the overnight lending rate, leading to a reduction in fixed mortgage rates. For instance, the 5-year fixed mortgage rate dropped from 5.49% in October to as low as 4.89% by January 2024.

The impact of high interest rates is not limited to homeowners; it also affects the rental market. Over the past two years, as interest rates increased, asking rents surged by 22%, as reported by Rentals.ca.

Amidst these changes, many Canadians are contemplating whether this is the right time to make a decision between buying or renting. To shed light on this dilemma, Zoocasa conducted an analysis across 26 markets in Canada. The analysis compared monthly rental prices with monthly mortgage payments, based on average prices in December 2023. Check out the findings by clicking the link below:

What are your thoughts on buying vs. renting? Share your experiences by commenting below.