With rising rent prices across Canada, many have begun wondering whether renting is really the most affordable option. While it’s still seen as less costly for potential buyers looking at the high cost of borrowing, the gap between average monthly rent and mortgage payments is everchanging. And now, a new report by Zoocasa breaks it all down, per major city.

To dive deeper, Zoocasa looked at 21 different markets across Canada, using data from Rentals.ca to compare the monthly rent for the average home in each city.

Mortgage payments for each city were calculated by assuming a 20% down payment at a mortgage rate of 4.69% amortized over 30 years on the average-priced home.

Note that this report does not include the cost of utilities or property tax.

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Of the 21 markets analyzed, mortgage payments were less expensive than rent in only two cities: Winnipeg and Quebec City.

rent or mortgage canada
Photo via Zoocasa

Least expensive markets

According to the report, the average rent in Winnipeg is $1,435 per month, while the monthly mortgage payments for the average home would come to $1,360. In Quebec City, mortgage payments would total $1,300 per month, just shy of the average monthly rent of $1,355.

Most expensive markets

By contrast, the rental markets that have the largest difference between rent and mortgage prices are the cities with the most expensive homes, AKA – Vancouver, Toronto, Oakville-Milton, and Mississauga.

Of these cities, rent is most affordable in Mississauga at $2,395 per month. The largest gap between rent and mortgage can be found in Oakville-Milton, where the average rent is $2,595 and the monthly mortgage amounts to $5,221.

As for Toronto and Vancouver – things aren’t looking much better for prospective home buyers. In Toronto, the average rent is currently $2,908 per month, whereas the average mortgage is $4,499 per month.

In Vancouver, monthly rent sits at $3,136, and the average mortgage is $4,631 per month. Not the largest gap, but still wildly unaffordable no matter which option you pick.

Finally, we come to Alberta. The average monthly rent in Calgary is $1,740, and the average mortgage totals $2,136 per month. In Edmonton, the gap is even smaller, at $1,258 per month for the average rent, and $$1,505 for the average mortgage payment.

So based on this report, it looks like renting is, overall, the most affordable choice when it comes to housing in Canada.

Here’s to hoping rent prices in Canada continue to drop, however slowly.