With rising real estate prices across Canada, many Canadians question whether to rent or buy. While renting offers flexibility, buying builds equity — but which option makes the most sense?

Current Market Trends:
As of 2023, the average Canadian home price hovers around $670,000, according to CREA. In contrast, rental prices in major cities like Toronto and Vancouver have surged, sometimes making monthly mortgage payments comparable to rent.

Equity vs. Flexibility:
Homeownership allows you to build equity, offering long-term financial stability. On the other hand, renting provides freedom, especially for those unsure about settling down.

The 5-Year Rule:
Experts often cite the “5-Year Rule” — if you don’t plan on staying in a property for at least five years, renting may be the better option. This timeline helps recoup closing costs and benefit from potential home appreciation.

Expert Insight:
“The decision isn’t just financial; it’s lifestyle-driven. Consider job stability, family plans, and long-term goals,” advises Shaun Cathcart, CREA’s Senior Economist.