Join the Scotiabank StartRight® Program designed for Newcomers‡ and get up to $2,300* in value in the first year.
Rental scams that target newcomers are common in popular settlement cities like Toronto, Vancouver, and Calgary. The rise of online platforms also makes it easier for scammers to target newcomers and international students. So, it’s vital to know how to spot and avoid scams. Rental scams in Canada are widespread, and the exact number of cases is hard to pinpoint because many people don’t report them. Discover ten tips to avoid costly rental fraud, financial loss, and heartache.
88% of Canadians have been targeted by fraud, and 19% have been victims. More than half of those targeted (56%) did not report it. Scams and fraud cost Canadians $638 million in 2024.
Scotiabank: Impact of financial fraud on Canadians
Rental fraud involves people falsely posing as landlords or property managers to get your money or personal information.
As rent prices drop and the supply of rental units increases, newcomers and students remain vulnerable to rental fraud. According to police, there were 381 reports of rental scams in Toronto in 2024.
Research is your first line of defense. Verify the listing by cross-referencing the address and images. Use tools like Google Maps to ensure the property location matches the description.
Scammers often use the same property images for multiple listings. Use reverse image search tools to check if the photos appear on other rental platforms or listings. It’s likely a scam if you find duplicates with different contact information.
As part of your research, investigate the median rental price in the city you want to rent. Be suspicious of rental prices well below the median (too good to be true!) It could be a rental scam and a warning that something isn’t right.
Legitimate rental platforms in Canada offer more security measures and verify landlords. These platforms have rules for finding and removing fake listings. Choosing a reputable platform such as Rentals for Newcomers will increase your security and peace of mind.
The property owner’s name (individual or company) must be on the lease. If it’s not, walk away. Do not accept anyone’s offer to “send the documents to you later.” That’s a rental scam warning sign.
Conduct a quick online search of the landlord to reveal any previous complaints or issues.
Cash-only deals are the number one rental scam and a sign that something is wrong because you can’t track cash. It’s a red flag if a landlord asks for cash or an e-transfer. The best way to protect yourself is to avoid cash deals. Read more about rental application tips for newcomers.
The same goes for upfront wire transfers or gift card payments. Scammers will ask for these unusual payment methods because they are difficult to trace and recover.
Scammers ask for a payment or deposit of the first and last month’s rent before you sign the lease or see the property. In some cities, this could easily be $4,000. But they vanish after they get your money. These scams exploit the competitive nature of rental markets, where potential tenants feel pressure to secure a property quickly.
While common, subleasing from the original tenant can be the shakiest thing you can get yourself into. Checking whether the tenant has the right to sublease the rental to you is hard. And you can never be sure you’re not becoming part of a rental scam.
Rental scammers use classified websites such as Craigslist and Kijiji, posing as a “middleman” authorized to rent a place to you. They will meet you at the address (which is usually accurate), but will tell you they can’t access it.
The scammers find the rental on another real estate platform, take the pictures and description, and place the info into an online ad. The middleman then collects a rental payment, security deposit, and other payments that can be part of a rental agreement and disappear with your money.
Always view the property in person or send a trusted person before you commit. This step lets you check if the property exists. It also allows you to meet the landlord or property manager. If the landlord makes excuses to prevent an in-person viewing, it should raise red flags.
Virtual tours can be a useful first step. However, they should not replace an in-person visit. Scammers can easily fake or change online content. They may show a rental that looks amazing online, but when you show up, they show you an inferior rental at the same price.
Verbal or handshake agreements are another tool rental scammers use. So, always sign a hard copy of the rental agreement (or lease). A hard copy is preferable, but e-leases are becoming common. The agreement should include the landlord’s name and address.
A lease agreement outlines the rental terms, price, and conditions. Beware of vague language or missing clauses. A lease protects the landlord and the tenant, ensuring they understand their rights and duties.
If possible, ensure the landlord is present when you both sign the lease and get a copy. The lease should include the landlord’s name, address, and telephone number.
A licensed real estate agent can help you find a rental, making your search easier and safer. Real estate agents have access to legitimate landlords, can help you find the rental you want, and reduce the risk of getting scammed.
International students are prime targets for rental scams. When searching for housing, contact the school’s off-campus housing office. They can recommend and connect you with trusted landlords and property managers. If you’re searching for student accommodation, find out the key things to consider.
If something about the rental process feels off or too good to be true, take a step back. Trust your instincts. The urgency to secure housing should not overshadow your judgment. It’s better to take the time to vet a listing than to be a victim of a costly rental scam.
If you have been a victim of a rental scam, you can report it to the Canadian Anti-Fraud Centre, the RCMP, or local police.
Report fraudulent listings directly to the platform. They take user safety seriously and will take action against fraudulent listings.
Rental scams in Canada often target newcomers in popular cities like Toronto, Vancouver, and Calgary. By arming yourself with these tips, you can avoid financial loss and heartache and safely rent your first home in Canada.
Planning a 2026 Arrival? Don’t get caught in the price surge. Read our Short-Term Rentals World Cup 2026 Survival Guide before you book in Toronto or Vancouver.
Co-ownership is a creative and increasingly popular home-buying solution for newcomers to Canada. Many immigrants are eager to buy a home in Canada, but can’t afford the financial costs alone. Co-ownership allows newcomers to combine resources, share costs, and enjoy the benefits of owning property in expensive cities like Toronto and Vancouver. Discover how shared ownership works and what to consider!
Becoming a homeowner is a goal for many immigrants to Canada. However, the high cost of down payments and mortgage financing forces many newcomers to put their dreams on hold for years. High home costs may also force newcomers to make a costly secondary move to more affordable cities.
Saving for a large mortgage payment is one of the biggest challenges for newcomers. Home prices in the most popular cities in Canada remain high and out of reach of many Millennial and Gen Z immigrants.
Co-ownership is a strategic home-buying solution and a direct path to real estate investment. It’s ideal for newcomers who may be priced out of the market even after living in Canada for years.
Historically, co-ownership involves friends, family members, or investors pooling their resources to buy a home to share. They own a property jointly, with each owning a percentage.
A homeownership deal is a legal and financial partnership where the co-owners share costs, responsibilities, and benefits. Deciding to renovate or sell the property typically requires the agreement of all co-owners.
A recent Leger survey for RE/MAX Canada found that 50% of Canadians would consider alternative home-buying solutions. The survey found that 21% would consider co-ownership.
A 2023 Royal LePage survey showed that:
Co-ownership involves careful planning, good communication, and legal safeguards to provide a healthy partnership. According to industry experts, following this recipe leads to successful co-ownership.
Saving for a large down payment remains the number one challenge for newcomers looking to buy a home. For example, homes priced at $500,000 or less in Ontario require a minimum down payment of 5%. So, if you’re buying a house for $400,000, the minimum down payment would be $20,000 (5% of $400,000).
| HOME PRICE | MINIMUM DOWN PAYMENT REQUIRED |
|---|---|
| $500,000 or less | 5% |
| $500,000 – $1 million | 5% of the first $500,000 + 10% of the remaining balance |
| $1 million or more | 20% |
For Ontario homes between $500,000 and $1 million, the minimum down payment is 5% of the first $500,000 plus 10% of the remaining balance. So, if you buy an $800,000 home, the minimum down payment is $55,000 (5% of $500,000 plus 10% of $300,000).
For homes more than $1 million, you’ll need a 20% down payment. So, if you buy a $1.5 million home, the minimum down payment would be $300,000 (20% of $1.5 million).
It’s easy to see how co-ownership makes it easier and faster to create a down payment.
Before deciding if co-ownership is right for you, it’s important to understand the broader question many newcomers face: should you rent or buy a home in Canada? Exploring both options can help you decide if homeownership, shared or individual, aligns with your financial situation and long-term goals. Learn more in our guide: Rent or Buy a Home in Canada? A Guide for Newcomers.
Co-ownership in Canada is usually structured in two ways:
2. Tenants in Common: Owners can hold unequal shares. They bequeath their share to a beneficiary of their choice instead of automatically transferring to other co-owners.
| PROS | CONS |
|---|---|
| Sharing Costs: Co-ownership allows investors to share costs from down payments to mortgage payments, maintenance, and property taxes. Affording Better Properties: Co-ownership creates financial power to buy homes in desirable locations or those with more amenities. | Exiting Co-ownership: Selling a property under co-ownership can be more complex because every owner must agree on major decisions. Resolving Disputes: Differences in personal finances or goals can create conflicts among co-owners. |
Before you enter a co-ownership agreement, these are vital financial and legal steps to consider:
In addition to co-owning a home with a family member or friend, companies such as Ourboro offer newcomers a path to homeownership.
Co-investment companies invest in the property with homebuyers and reduce the need for a large down payment.
A recent survey of Ourboro co-owners found that 56% identify as racialized populations and 47% were born outside Canada.
“Buying your first home can be intimidating on a good day, let alone trying to navigate the current market conditions or explore financing options,” Nick Pope, Ourboro’s co-founder, told Prepare for Canada.
“It’s an emotional journey,” said Pope. “Having a professional co-ownership partner can make a big difference; taking the anxiety out of the process by having a dedicated person guide them.”
An investment firm’s down payment contribution in co-ownership is an investment, not debt. The company, just like the homeowner, risks losing its investment if the home sells for less than the purchase price.
Using Ourboro as an example, if you co-buy a $1,000,000 home with them to meet the 20% down payment requirement, the combined co-investment must be $200,000. The homeowner’s mortgage would then make up the remaining $800,000 (80% of the home’s value).
If the newcomer homebuyer invests $80,000 (8% of the home value) and Ourboro invests $120,000 (12%), together you have a co-investment of $200,000 (20%).
As Ourboro points out, co-investment is a short-term home-buying solution that makes homeownership more accessible. It also offers long-term benefits through shared appreciation. As the property’s value increases, the homebuyer and Ourboro share the gains, creating a mutually beneficial arrangement to build wealth.
“We have such rigid expectations on what owning a home needs to look or feel like,” says Alex Kjorven, Ourboro’s Chief Product Officer. “But for many first-time homebuyers that don’t have access to generational wealth, it may not make sense to put all your savings into a home.”
“We’re excited to challenge existing norms and make co-buying a no-brainer for folks who understand that it doesn’t have to be all or nothing.”
Whether you partner with family or friends or an investment firm like Ourboro, co-ownership can be a smart path to homeownership. This is particularly true in expensive cities like Toronto and Vancouver, where newcomers can be priced out of the housing market.
Learn about real estate concepts such as mortgages, down payments, and closing costs.
Research leaders in the home co-ownership sector, like Ourboro.
Understand the pros and cons of shared ownership with an investment company.
Ask the right questions to determine if co-ownership is for you.
Have a legal exit strategy and plan to resolve disputes.
For newcomers, tenant insurance in Canada is the best way to protect your valuables with peace of mind. Also called renters insurance, it’s vital when moving into a long-term rental in Canada, especially when facing an emergency. Get the basics of tenant insurance, why you need it, and how it protects you financially.
When you rent your first home in Canada, you don’t own the property, but likely own the contents. This can include furniture, electronics, clothing, and other valuables. Replacing any of these items is expensive without insurance.
Tenant insurance provides peace of mind and protects you financially after a loss due to a break-in, fire, flood, or other event beyond your control. For example, if there is a fire in your apartment, you would have to pay for the damage even if you didn’t cause the fire.
While repair costs vary, even minor fire damage could range from $5,000 to $15,000 in Canada. Tenant insurance would pay to cover damages and other costs.
Arriving with an action plan for your first weeks in Canada can save you time and money. The quicker you settle into your new environment the faster you’ll feel at home! In this webinar, Your First Weeks in Canada, we discuss the important things to do to manage your first weeks efficiently.
REGISTER FOR THE WEBINARAn insurance policy in Canada can protect newcomers by covering:
Theft or loss of valuables can be a major setback for newcomers settling in Canada. Tenant insurance covers loss or damage to electronics, furniture, jewellery, etc., based on the policy limit.
You can be financially responsible if someone is hurt in your home, even if you didn’t cause the injury. Liability coverage includes medical expenses, property damage, and legal fees. It can also protect you if you injure or damage someone else’s property, even by accident.
If you must leave your rental because of property damage, tenant insurance will cover temporary living expenses during repairs. Relocation costs cover hotel bills, food, and other necessary living expenses until you can return.
While you do not need tenant insurance by law, it’s risky if you don’t have it. Also, many Canadian landlords will insist you have it as a condition of your lease agreement. Landlords likely won’t rent an apartment to you, and can refuse you if you don’t have insurance.
Buying tenant insurance is smart, especially if you don’t have the money to cover a large bill or a Canadian credit history. It could take a long time to recover financially, and that’s not how you want to begin your life in Canada. The landlord’s insurance will not cover loss for:
Your landlord’ s home insurance covers building damage, liability, and loss of rental income. But it does not cover your belongings or any expenses if you have to leave your rental for a period.
International students living in campus housing have costly valuables like laptops, phones, musical instruments, and jewellery. Plus, theft does happen in student housing. Tenant insurance covers and protects these belongings. Learn more about why insurance is vital for international students.
Monthly premiums are based on the value of your belongings. Generally, policies are affordable, and you’ll have peace of mind knowing you are protected in an emergency. Get your free quote now!
Emergencies are stressful, especially in a new country. Insurance is the best way to give you peace of mind and protect your valuables as you begin life in Canada!
Many newcomers to Canada arrive with the goal of home ownership, and many buy a home within a few years. However, coming up with a sizeable down payment and building a Canadian credit history can be a challenge for newcomers. That’s why a rent-to-own program and contract can be a strategic path for newcomers looking to buy a home. Discover how rent-to-own works to decide if this is an option for you!
Home prices in Canada remain high and may seem unaffordable for many newcomer renters. As a result, rent-to-own programs are becoming more popular as an affordable way to buy a home in Canada. With growing popularity, more real estate companies and landlords offer newcomers rent-to-own programs to help them become homeowners.
This creative path to home ownership works by reducing the large down payments required in today’s housing market. This makes the goal of owning a home in Canada easier for newcomers to achieve.
This is why rent-to-own programs, often called rent-to-buy, are attractive to newcomer first-time homebuyers.
Searching for your first home in Canada? Join this exclusive session for key insights on housing market conditions, affordable options, and renting without credit history. Tailored for newcomers settling in the next six months, register now for valuable tips and a free guide!
REGISTER FOR THE WEBINARIn Canada, a rent-to-own agreement is a contract between the renter and the property owner. Like a standard rental agreement, the renter makes monthly payments to the property owner at a set price.
A rent-to-own contract is different from a typical rental contract. With rent-to-own, some of the monthly payment goes toward a down payment on the rental property. These are called rent credits and allow the renter to buy the home at an agreed-upon date.
This program can be ideal for newcomers who may face challenges buying a home through the traditional financing route from a bank. It also helps newcomers:
A rent-to-own agreement gives renters time to save for a down payment through the rent credits that apply to the home purchase when the deal expires.
A rent-to-own agreement allows newcomers to sort out financial issues and save money to buy a home in Canada at a locked-in price. The duration of the agreement also allows newcomers to build their credit history and score. Making on-time rent payments is vital to boosting your credit history.
A rent-to-own agreement allows you to live in a house you’ve picked out before buying it.
If the value of the property increases during the rental period of the agreement, the renter still buys the property at the agreed-upon lower rate. This allows the new homeowner to keep the higher value of the home.
The renter is responsible for buying the home at the agreed-upon price, even if the property’s value decreases during the agreement term.
If the renter cannot buy the home at the end of the agreement, they may have to leave the property and lose the down payment credits that were part of the program. Newcomers need to fully understand the agreement before signing.
Newcomers do not need a large down payment to get a rent-to-own home. However, they still have to pay some money up front. This fee or option deposit must be paid on your move-in date. The deposit is deducted from the set purchase price.
A rent-to-own program agreement usually runs from one to 5 years. The landlord cannot sell the home to anyone else during the contract’s term. When you buy the house at the end of the lease term, you must pay the remainder of the down payment.
Here’s what it would cost to enter a rent-to-own agreement to buy a home in Canada for $495,000:
With this agreement, a tenant would save $26,640 for the down payment over the three years they’re renting the property. After putting 5% down, the remaining $2,509 could be used toward closing costs.
In Canada, 5% is the minimum amount you need for a down payment. In this case, the owner must also purchase mortgage loan insurance.
Most Canadian landlords require proof of valid tenant insurance. Tenant insurance protects your possessions and valuables (inside and outside your home). Tenant insurance can also provide other types of coverage, such as personal liability for accidents and damages, and living expenses if you’re forced to move out due to flooding, fire, etc. Read more in our guide, Tenant Insurance in Canada: Why Do Newcomers Need it?
When you become the property owner, you must have home insurance to protect your belongings, the house, and the property. You must also provide liability protection.
Research home insurance quotes to get the right coverage for your needs.
1. Currently, there are no government rent-to-own programs in Canada. Newcomers interested in these programs must deal with private companies.
2. Rent-to-own programs vary, so research and seek advice. Experts recommend that newcomers work with professional companies affiliated with the Canadian Association of Rent to Own Professionals (CAROP).
3. Newcomers buying through a rent-to-own program must have tenant insurance.
4. The demand for rent-to-own programs is growing in provinces like Ontario, Alberta, and BC, where housing costs are high. Here is a list of CAROP members.
For newcomers and international students arriving in Canada renting a room in a home can be an affordable housing option. Most arriving newcomers seek a short-term rental, and then search for a longer-term rental. Many also consider sharing accommodation with others as a cost-effective option. But there is another solution for newcomers: home-sharing, or renting a room. Discover how renting a room in Canada can be a great solution for renters and homeowners!
Home-sharing is not new to Canada. For example, other home-sharing programs focus on helping students find affordable accommodation or keeping seniors living and aging in place.
Sparrow, a Canadian home-sharing platform helps immigrants explore and find rooms for rent and home-share solutions. It also looks to enlist newcomer homeowners as hosts. To achieve this, Sparrow has teamed with Prepare for Canada to make hosts, and rooms, available to newcomers.
This Sparrow-Prepare for Canada initiative provides immigrants and international students with accommodation sharing, another alternative to apartments, condos, or house renting. “We need to make it easier and safer for newcomers to find good housing options in Canada,” said Oren Singer, co-founder and CEO of Sparrow. “There’s a ton of underutilized housing space in the form of spare rooms and basements.”
“With the cost of living so high these days, many homeowners turn to home-sharing to supplement income.” The rooms-for-newcomers project is timely and affordable. Whether you want to earn additional money to increase your disposable income or build an emergency fund, renting out a room can be a great option.
Though rental prices and vacancy rates are now easing across Canada, affordable housing remains an issue for many newcomers arriving each month.
“We need to make it easier and safer for newcomers to find good housing options in Canada.”
Oren Singer, Co-founder and CEO, Sparrow
“We’re proud to collaborate with Prepare for Canada to help connect and match newcomers to places they can call home,” says Singer.
Sparrow’s home-sharing platform matches hosts with spare bedrooms to newcomers and international students seeking affordable rooms for rent in Canada. The company also sees its business as building social connections and increasing the quality of life for Canadians.
In addition to the demand and competition for affordable rentals, rental prices remain high, particularly in popular destinations for newcomers like Toronto and Vancouver.
In February 2025, a one-bedroom apartment in Vancouver cost $2,522 a month, while a one-bedroom in Toronto was $2,353. Even a one-bedroom in Saskatoon, one of Canada’s most affordable cities for rent prices, was $1,217 monthly. Homeshare rents, at approximately $964 a month, are significantly cheaper.
“Basements or rooms for rent on the Sparrow platform are more affordable than the average studio or 1-bedroom rental rates,” says Singer.
“We’ve been helping newcomers make connections that simplify the immigration journey for over 12 years,” says Dave Frattini, managing partner of Prepare for Canada and Rentals for Newcomers. “Sparrow is a purpose-driven home-sharing platform and community that makes renting a room easy, safe, and affordable.”
“Together, we’re on a mission to help newcomers enter the rental market faster and easier. We connect newcomers with homeowners to help them find safe and affordable housing. We look forward to connecting with homeowners who want to build this innovative housing solution for newcomers.”
Sparrow’s rigorous matching and identity verification process ensures safety and security. Its matching process involves background checks, home share agreements, and screening interviews. Sparrow also matches based on compatibility to enable better connections based on habits, lifestyles, and living preferences. Newcomer homeowners and renters can sign up here.
Sparrow does credit and background checks to match people based on compatibility. Hosts can list their rooms for rent and create a FREE profile. Sparrow charges the host a fee when they receive the first rental payment from the housemate. Housemates do not pay Sparrow fees.
Anyone who becomes a host should check with their insurance company to see if they need additional coverage for home-sharing.
The host service fee (a one-time only fee) depends on the length of the home share contract and ranges from 25 – 100% of one month’s rent, for example:
| HOMESHARE TERM LENGTH | FEE (% OF ONE MONTH RENT) |
|---|---|
| 1 – 3 months | 25% |
| 4 – 5 months | 50% |
| 6 – 9 months | 75% |
| 10 – 12 months | 100% |
The lack of affordable housing for renters, plus population growth and inflation, inspired homeowner Karen H. to become a Sparrow host. “I decided I could pay it forward by helping somebody get into a space to live at a reasonable price.”
Karine S., who rents a room from Karen in Toronto, said that initially, she didn’t know about the Sparrow concept of housemates and renting a room. She said she was hesitant at first because of previous issues with roommates.
“I was a little bit wary going into this,” she said, “but the thing that clarified it for me was finding a compatible match (Karen).”
Watch the video to learn about Karen’s successful home-sharing experience!
Sparrow estimates there are over 12 million empty bedrooms across Canada.
A Canada Centre for Economic Analysis report estimates more than half of residents, and three-quarters of those over 65, live in houses bigger than they need. This is five million spare bedrooms across the province.
“We have an opportunity and responsibility to reimagine how we use and share our housing space,” says the Sparrow website. The company also notes that one in five Canadian renters spends more than half their income on shelter costs.
In addition to housemates, Sparrow and Prepare for Canada are looking for hosts to meet the demand for accommodation sharing. Renting out a spare room and welcoming housemates can help homeowners deal with rising expenses.
For newcomers and international students seeking to rent a room and share accommodation, this is a safe and affordable housing option. It’s also a great chance to make a lifelong friend!
Finding affordable rental apartments in Canada can be challenging for newcomers and international students. This overview offers valuable tips on finding accommodation in Canada and preparing for a successful housing search. While finding a short-term rental before you arrive is vital, the hard work is finding affordable long-term housing. Researching the housing market before you arrive will provide you with information about rental prices in Canada.
Rental prices in Canada soared in recent years. Prices rose in Edmonton, Saskatoon, and Regina, as people left high-rent cities like Toronto and Vancouver in search of more affordable rent. Only recently have prices started to fall, a trend experts say will continue throughout 2025. However, while rental prices are decreasing in many cities, affordability remains an issue.
Many newcomers turn to Rentals for Newcomers (RFN) to find accommodation in Canada.
Why has RFN become so popular with newcomers seeking their first rental home in Canada? RFN helps people avoid the headaches, heartaches, and expenses of their rental search by promoting landlords who value newcomers.
For immigrants arriving in Canada’s competitive rental market, Rentals for Newcomers is invaluable. Plus, it’s FREE, but you must create an account! Register for free and connect with landlords.
Rent prices vary across Canada, and some cities offer more affordable housing options. Researching and comparing rental prices can help you identify affordable cities. Equally important is exploring the local job market to ensure suitable job opportunities in your field exist. Researching local housing prices and job market conditions is the best way to build a strong financial foundation in Canada.
Newcomers seeking accommodation in Canada must research the rental market before arriving. Knowing the rental landscape can help you find your first home more quickly. Rentals for Newcomers is a great place to begin your research and find affordable apartments in Canada.
In addition to hosting rental listings from across Canada, RFN (a Prepare for Canada resource) provides:
Dave Frattini, the Managing Partner at Prepare for Canada and Rentals for Newcomers, says RFN is an invaluable tool to find accommodation in Canada.
“Searching for affordable accommodation in Canada is more difficult than ever for newcomers,” said Frattini. He offers these tips to prepare to find rental accommodation in Canada:
Frattini emphasizes that “newcomers must put their best foot forward when they meet landlords. Landlords can select the pick of the crop tenants for affordable rentals in prime locations.”
“Rentals for Newcomers is a great example of a partner agency,” said Jesse Greenwell, head of Communications Culture and Inclusivity at Mainstreet Equity Corp. Mainstreet is a leading real estate company for mid-market apartment rentals in Western Canada, “which can help prepare newcomers for Canada’s rental market.”
RFN has access to the latest rental technology, tools, insights, and trends. This rental
technology allows RFN to verify landlords and ensure that scam listings are not on its site to protect newcomers. Sites like Craigslist and Kijiji are vulnerable to rental scams that target newcomers.
“Importantly, our listings are well managed,” said Frattini. “The platform is driven digitally and manually and we inform and update our audience about scams in the rental market in blog posts.”
Although rent prices are slowly decreasing and vacancy rates are improving, finding accommodation in Canada remains challenging for newcomers. Experts say this trend will continue throughout 2025. So, it’s vital to research and prepare to find your first long-term rental. Using Rentals for Newcomers can make your search easier, and faster, and help you avoid rental scams.
Renting a condo in Toronto has become more attractive and affordable to newcomers to Canada. Lower asking prices and more rental condos on the market have given newcomer renters more bargaining power with landlords. It has also given them an alternative to renting in an apartment building. Understanding Toronto’s changing condo market can help newcomers find their first rental home in Canada.
For newcomers, it’s a good time to rent or buy a condo in Toronto. And the market will offer many attractive options in 2025. The Toronto condo market is in flux due to an oversupply of condos amid falling sales and rental asking prices. Toronto and Vancouver are by far the largest condo markets in Canada. In Toronto, condo sales have slowed dramatically in 2024, descending into a situation described as “bleak.”
According to recent data from Altus Group and BILD GTA, only 210 new condos were sold across the Greater Toronto Area (GTA) in October. That’s down 84% from the same time last year. The drop reveals a slowing condo activity and why asking prices have fallen.
There are approximately 40,000 units of condo supply in the GTA. This consists of unsold condos in development, assignment listings, or condo resale listings. Toronto condo market forecasts suggest there may be more affordable opportunities for newcomers looking to rent or buy a condo. Read more about living in Toronto.
Across Canada, condo rent prices are falling for all unit types except for popular three-bedroom units. Nationally, two-bedroom condo rents saw the largest annual decline. This national trend in condo asking rents matches what’s happening in Toronto and Vancouver.
Whether renting or buying, living in a condo offers newcomers advantages and disadvantages:
| PROS | CONS |
|---|---|
| Less maintenance and repairs | No control over maintenance & repair schedules |
| On-site amenities, such as a sauna, swimming pool, gym | Paying for amenities you don’t use |
| Enhanced security features | Less privacy and possibly more noise |
| Predictable monthly maintenance or condo for owners | Special assessment charges for unexpected repairs |
| Condo boards elected by and answerable to owners. | Some condominium units are small |
| A community lifestyle with social, entertainment, and recreation | Condo board rules on noise levels, parking, pets, smoking and decorating |
| Possibility of renting out the unit as an Airbnb rental | Disruptions caused by Airbnb rentals |
Some of these pros and cons affect owners only and not renters. If you rent, your landlord will explain the condo rules and regulations before you sign the lease.
Strong population growth in the GTA has boosted condo rentals, according to third-quarter data from the Toronto Region Real Estate Board (TRREB).
In addition to population growth, there has been a growth in the number of condos for rent in Toronto. This offers newcomers looking to rent in the Toronto condo market greater choice and lower rental costs.
“Many newcomers to the GTA initially choose to rent a home,” said TRREB President Jennifer Pearce.
“Given the record pace of immigration, it is no surprise that the number of (condo) rental transactions continues to trend upwards,” said Pearce. “In recent months, these renters are benefitting from more negotiating power, due to an increase in listing supply. This has resulted in a more affordable (condo) rental market.”
The average rent for all types of rentals in Toronto in October was down 9.0% year-over-year to $2,642.
In the City of Toronto condo rental market, rentals rose 38% year-over-year. According to a recent national report from Royal LePage, this increase was driven by newcomers and population growth.
| CONDO TYPE | RENTAL PRICES (OCT 2024) |
|---|---|
| Studio Condo | $1,874 (down 6.9% from 2023) |
| 1-bedroom Condo | $2,499 (down 5% from 2023) |
| 2-bedroom Condo | $2,386 (down 4% from 2023) |
| 3-bedroom Condo | $2,889 (up 2.8% from 2023) |
A condo can be a good entry-level home for newcomers looking to buy in the Toronto market.
With many condos on the market and at lower prices, would-be buyers have been renting and saving money. They’ve been waiting for interest rate cuts and condo prices to fall. Toronto condo buyers have been waiting for the Bank of Canada to lower its key interest rate below 3.5%. In December, the Bank lowered the rate to 3.25% from 3.75%.
Buyers have also been waiting for desirable two- and three-bedroom condos in prime downtown locations to come on the market.
When buying a condo, it’s smart to consider the size. The hottest-selling condos are two and three-bedroom units of 800 square feet or larger. However, the reality is that most units are 600 square feet or less (studios, one-bedroom, one-and-a-half bedrooms).
In Toronto, the average selling price of a condo (all sizes) in October was $650,000, down 0.7% from September. Overall, the price has fallen 6.1% since October 2023.
The average selling price for all property types in the GTA has fallen 15% since the peak in February 2022. Housing and condo prices in the GTA are expected to remain stable or rise slowly come spring, depending on interest rates.
Toronto’s condo market is becoming more attractive for newcomers. But for now, there appears to be no rush to buy one. As Toronto real estate agent Grace Chan told The Toronto Star, “Interest rates need to be lower, and the (condo) inventory needs to be more enticing,”
Sources:
For homeowners in Canada with a mortgage to pay and spare rooms to rent, becoming a homesharing host can help solve financial and personal needs. All homeowners quickly discover that homeownership comes with costly expenses, including the mortgage, insurance, monthly maintenance, and daily living expenses. Despite the costs, homeownership remains the goal of young Canadians and newcomers, even with the high home prices and mortgage rates, according to a recent Scotiabank survey. Renting out that spare room and welcoming housemates as a home share host can help lower your monthly homeownership costs.
Discover the benefits of becoming a homesharing host and how to do it!
Renting out a spare room can bring Canadian homeowners valuable extra income via home share to help pay their mortgage and bills. Becoming a home share host is a solution that can bring financial relief, whether you’re an empty nester, a struggling young homeowner, or a newcomer to Canada homeowner. It also enables homeowners to make new friends and gain companionship.
The 1.4 million Canadians who got a mortgage in 2020 or 2021 may have seen their median monthly mortgage cost increase by $420, or 30%, upon renewal. Even though the Bank of Canada continues to lower interest rates, many homeowners renewed their mortgages when or just after the rate reached a high of 5% in 2023.
Renting out a spare room can ease that financial pressure. It also provides affordable home-share rental option for newcomers and international students.
Searching for your first home in Canada? Join this exclusive session for key insights on housing market conditions, affordable options, and renting without credit history. Tailored for newcomers settling in the next six months, register now for valuable tips and a free guide!
REGISTER FOR THE WEBINARHomesharing hosts rent spare bedrooms to long-term housemates for rent (and possibly help around the house and companionship). While the homesharing concept isn’t new, Prepare for Canada and Sparrow Share have partnered to offer a unique and fulfilling path for Canadian homeowners to become homesharing hosts.
Sparrow estimates that there are over 12 million empty bedrooms across Canada.
Canada will welcome 395,000 immigrants in 2025 and 380,000 in 2026. That’s in addition to tens of thousands of international students and temporary foreign workers looking for affordable housing. Rental demand and rent asking prices nationwide remain high for renters.
Homesharing, done right, is a safe, reliable, hassle-free process that benefits both hosts and renters.
In Ontario, it’s estimated that more than half of residents, and three-quarters of those over 65, live in houses larger than they need. According to the Canadian Centre for Economic Analysis, that adds up to five million spare bedrooms across Canada’s largest province.
Oren Singer, the co-founder and CEO of Sparrow, says Canada needs “to do a better job of making it easier and safer for newcomers to find good housing options in Canada.” “There’s a ton of underutilized housing space in the form of spare rooms and basements,” said Singer.
Dave Frattini, Managing Partner of Prepare for Canada and Rentals for Newcomers, says the Prepare for Canada/Sparrow initiative offers a simple, turnkey homesharing service to help homeowner hosts find a pool of compatible housemates.
To ensure accountability, Sparrow verifies every potential renter through background, credit, and income checks. Their matching algorithm finds renters who complement the homeowner’s lifestyle.
Sparrow also ensures that the homeowner’s room rental is the optimal price. They collect and report rent payments to credit bureaus to motivate renters to pay on time.
Housemates can rent a room for as little as two months or up to a year.
We’re on a mission to help newcomers enter the rental market faster and easier by connecting them with homeowners and newcomer allies.
Dave Frattini, Prepare for Canada
Homeowners who want to become homesharing hosts can list their rentals and create a profile for free. A service fee for hosts is only charged once the host has received the first rental payment from the housemate.
The host service fee (a one-time-only charge) ranges from 1/4 – 1 month’s rent, depending on the length of the homesharing contract. There are no service fees for housemates.
| TERM LENGTH | ONE TIME ONLY HOST SERVICE FEE |
|---|---|
| 1 -3 months | 1/4 month’s rent |
| 4 – 5 months | 1/2 month’s rent |
| 6 – 9 months | 3/4 month’s rent |
| 10 – 12 months | 1 month’s rent |
Becoming a homesharing host offers many benefits, including:
Brigitte Sharpe of Toronto decided to become a Sparrow homesharing host after her son moved out.
“I’ve got a second room,” said Sharpe. “It’s very difficult for people to find spaces, so I thought I would give it a shot.”
Sharpe says that she and her housemate of six months bonded and now have a friendship. She believes that they will definitely get together in the future.
Canadian homeowners with a spare bedroom can sign up to be a home-sharing host here.
“We’re on a mission,” says Frattini, “to help newcomers enter the rental market faster and easier by connecting them with homeowners and newcomer allies who can provide safe and affordable housing.”
“We look forward to reaching out to any homeowners across the country who want to contribute to building this innovative housing solution for newcomers.”
And, of course, for homeowner hosts, there are the benefits of “having someone around.”
“I recently spoke with one of our hosts who’s been renting out her spare room to a PhD student from the University of Toronto for about a year now,” said Singer.
“She shared that, while the extra income has been helpful, the biggest benefit has been the peace of mind that comes with having someone around.”
Singer said that this reminds him “how homesharing isn’t just about financial stability, it’s about creating a sense of community.”
Canadian homeowners looking for a sense of community and an income stream from renting a spare room can sign up here to be homesharing hosts.
With rising homeownership expenses, becoming a Canada homesharing host may be the boost you need!
Renting a room in a homeowner’s house is a smart strategy for newcomers to Canada. Following these simple, common sense tips for housemates will create a great experience for newcomers, international students, and homeowner hosts.
But perhaps the biggest tip about being a housemate is that the rent as a housemate can be several hundred dollars cheaper than you would pay as a roommate. And, you’re not tied into a long-term lease.
Homesharing provides a way for renters to find budget-friendly rooms in great neighbourhoods. This is a great option for newcomers and international students looking to become housemates in a home-sharing arrangement, whether for two or twelve months.
Living with a homeowner in their home as a housemate offers many advantages, from saving money to making friends. Housemates and hosts can forge a lifelong relationship by following simple rules.
Here are six helpful tips for housemates that will contribute to a great living experience:
Make sure that you understand the house rules from the beginning. Have an open discussion with the homeowner and other housemates, if there are any. It’s important to understand the homeowner’s expectations and decide what is fair. A good tip for housemates is to schedule regular meetings (weekly or monthly) to address concerns, expectations, and schedules. This will maintain openness and prevent issues from escalating. If chores are part of your home-sharing agreement, regular meetings provide a forum for updates and feedback.
This is an excellent tip for housemates that will prevent small problems from escalating into big problems. If something is troubling you as a housemate, talk to the homeowner/host and discuss it as soon as possible. Don’t let things fester. This will prevent resentment from building, which could poison your relationship. Be open to finding a solution that works for everyone and be willing to compromise. Being proactive is the best strategy in a homeshare environment.
Searching for your first home in Canada? Join this exclusive session for key insights on housing market conditions, affordable options, and renting without credit history. Tailored for newcomers settling in the next six months, register now for valuable tips and a free guide!
REGISTER FOR THE WEBINAR
Most items in a homeshare environment belong to the homeowner/host. If you have agreed to boundaries regarding using items or certain spaces, be sure to respect that by asking first if you can use them or move them. Likewise, the host should show the same respect if you have personal items in the house. Respect each other’s personal space by, for example, knocking before entering a closed room. Creating clear boundaries around property and space from the beginning will ensure maximum privacy and respect. Use headphones and be mindful of noise. Learn the host’s schedule and share yours. Again, it’s all about communication.
You and your host may come from different cultures and thus have different values and beliefs. Approach the housemate experience as an opportunity to learn, share, and grow. It’s a chance to see the world through someone else’s eyes and share your view of life. You won’t agree on everything, but if you stay open, the possibilities for learning, growth, and friendship are endless. Be open to sharing experiences,
Again, this is an issue of respect and communication. Energy costs concern homeowners, so do your best to keep them down. Turn off lights, wash your clothes during off-peak hours, turn off taps, and recycle. These are just a few things you can do to show respect and earn the host’s trust and friendship. It will go a long way in avoiding potential conflicts.
This is an important tip for housemates to ensure privacy and build respect. Be sure to understand the guidelines about having friends over and overnight guests. Discuss and understand the host’s expectations and comfort level regarding visitors and the acceptable length of stay. It all comes down to common courtesy, communication, and respect for privacy.
Housemates and hosts may never become best friends, but the goal should be to be respectful, polite, friendly occupants of a shared co-living space. Take the time to know and understand each other, share some meals, watch TV, and enjoy moments together. All of this – and following these simple, common sense tips for housemates will create a great experience for newcomers, international students, and homeowner hosts.
Searching for housing in Canada as a newcomer can be challenging. Working with a real estate agent to help you search for a rental is a great way to navigate the process. If you’re searching for a rental, you likely have things to ask a realtor about when renting your first home. Canada’s rental market is ultra-competitive right now. Vacancy rates in large and mid-sized cities across the country are at record lows (around 1.5 percent), prices continue to rise, and landlords may have multiple applicants for their rentals.
The competition gets more intense, with record numbers of newcomers arriving every month. Canada is working to increase its rental stock, but a surplus of rental units is years away.
Nasma Ali, a Toronto real estate broker and founder of OneGroupToronto told Prepare for Canada that a licensed, experienced real estate agent (or realtor) can guide newcomers through a sometimes complicated rental agreement and process.
In addition to using their experience and contacts to help you find a rental home, “it’s good to have a realtor,” said Ali, “to guide you through the rental process and explain what each of the clauses (in the agreement) means. What are your rights and obligations, and what are you signing?”
[cjtoolbox name=’Renting Webinar’]
Working with a Real Estate Agent to Find Rental Housing in Canada
Accommodation in Canada | Options & Solutions for Newcomers
Learn all about Souqh and their real estate and housing expertise (VIDEO)
Ali says a real estate agent can also protect newcomers against landlords who try to “sneak something that’s not lawful” into the agreement. The realtor, she says, “is going to be advocating for you and protecting your rights.”
There are approximately 85,000 licenced realtors in Ontario. Prepare for Canada and Souqh, a fintech company, have partnered to give newcomers a FREE and easy way to find a realtor in the city where they wish to settle.
Souqh partnered with Prepare for Canada and Rentals for Newcomers to connect immigrants with realtors and assist with finding rentals across Ontario.
Ahmer Rafiq, CEO, Souqh
If you’re interested in working with a realtor to find your first rental home in Canada, here are some common questions newcomers ask about the process:
Using a real estate agent to help find your first rental home in Canada costs you, the tenant, nothing. Your future landlord (the actual owner of the property) pays the realtor’s commissions and fees. However, be sure to check any agreement that you sign, either with the realtor or the landlord, carefully for hidden fees. If the realtor asks you to pay an additional cost, you can walk away and find another agent.
Newcomers who choose to find their own apartment for rent will find that the main cost is time…and stress! Canada’s rental market is competitive, with low vacancy rates below 2 percent in most large and medium-sized cities. This means many people are competing for the same rental home. Canada will welcome 485,000 newcomers in 2024 and 500,000 in 2025, so many newcomers are looking for a rental.
According to a recent Rentals.ca Canadian Renter Survey, 34 percent of people surveyed have been looking for a place for at least two months, with 15 percent searching for more than six months. So, it could take you that long to find a spot on your own.
Sites such as Rentals for Newcomers, which is unrestricted, provide listings from landlords who value newcomers as tenants. But, you must search, inspect, and negotiate simultaneously as you are likely looking for a job and getting settled.
As they say, time is money, and your time as a newcomer is best spent viewing the rentals in person, not searching for them.
You can, but it is not advised, particularly if you have signed a representation agreement. It’s doubtful a realtor will work with you or put in their best effort if you have multiple real estate agents.
It’s smarter to select a realtor who knows the city or neighbourhood where you wish to live and trust their experience and knowledge.
While tenant insurance is not mandatory, most renters in Canada get renter’s insurance. This is mainly because many landlords and buildings require it. Many landlords will only rent to you with insurance and may insist that the realtor only present tenants willing to get it.
When renting your first long-term home as a newcomer, you don’t own the property, but you most likely own the contents, such as furniture, electronics, and other personal possessions, unless you rent a furnished place. Personal items, including valuables such as jewellery, can be costly to replace if you have to pay out of pocket for them.
Also, if you cause damage to the landlord’s property, tenant insurance can cover you for those damages. And, if you must move out temporarily due to damage (water, fire, etc.), tenant insurance can help cover your temporary costs.
As of May 2024, the national average asking price for a one-bedroom apartment was $2,188, according to Rentals.ca National Rent Report.* That’s a 9.3 percent year-over-year increase.
But asking prices for a one-bedroom vary by province and city.
For example, a one-bedroom in Vancouver (the priciest city for rent) is $2,646. In Toronto, it is $2,459. The cheapest rent in Ontario in a large or medium-sized city is Windsor at $1,553. Rents are more affordable in the western provinces, particularly in Saskatchewan. The asking rent in Saskatoon is $1,215 for a one-bedroom and $1,251 in Regina.
If you have recently arrived in Canada, discover how to find a realtor to find the perfect home for you!
* Rental prices across Canada can change monthly
Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.
Prepare for Canada did not use AI-generated content in writing this story; all sources are cited and credited where possible.
© Prepare for 2024