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New Canadians may shy away from renting a basement apartment. Many imagine a dark and damp basement with bad living conditions. But this is far from the truth. It may not sound appealing, but in Canada, basements are usually quite nice and no different from any other part of the house. Discover the pros and cons of renting a basement apartment in Canada and if it’s the right option for you!
It’s common for people to start renting a basement apartment, especially if they want to live downtown in high-rent cities such as Toronto and Vancouver. Basement apartments are usually more affordable than one- or two-bedroom apartments.
If you are new to Canada, you probably want to find affordable housing, especially while you search for a job. In that case, basements will be your best bet. Landlords who rent out basement apartments often live in the home above the basement. As a result, they may charge lower rental prices because they are renting out only a part of their house.
Because basement apartment rental prices are more affordable than other rental options, you can live in a neighbourhood that might otherwise be out of your budget.
Since you only get part of the house, you may have less living space than other types of rental housing. Basement apartments in Canada generally have:
If you live alone, or have a small family, basement apartments have more than enough living space. If you have a large family, you might want to look for a larger living space, such as a 2-bedroom apartment.
If you’re searching for a basement apartment in Canada, determine how much space you need. View online listings to get a sense of the space. But, be sure to visit the rental property to inspect it and ensure the size and layout meet your needs.
Also, ask the landlord if utilities such as hydro and water are included in the rent and what amenities are included. Not all basement apartments will have a washer and dryer. So, make sure a laundromat is nearby for convenience.
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REGISTER FOR THE WEBINARThe two main types of basements are walk-up basements and walk-out basements. This is a crucial factor to consider when choosing a basement apartment.
In a walk-up basement apartment, you climb stairs to enter and exit. This type of basement is mostly located below ground and usually offers less natural light.
A walk-out basement has an entrance/exit on ground level so you do not need to climb stairs to exit. These basement apartments have an entrance at the back of the house where the backyard is. As a result, walk-out basements have more natural light. Living in a walk-out basement can feel like you live on the ground floor.
Many people prefer walk-out basements to walk-up basements. Walk-out basements have more natural light, better backyard access, and feel more open. And because of this, you don’t feel like living in a basement. However, finding a walk-out basement is hard because the house needs to be on a slope. So walk-out basements are a find.
If you find a walk-out basement, it may be more expensive than a walk-up basement apartment. However, it is possible to find a well-priced walk-out basement. Just make sure to start your search early.
Walk-up basements are more common. Most rooms will have ground-level windows so you will get natural light. However, the basement apartment you choose depends on your needs and preferences.
Tenant insurance is good to have no matter what type of housing you rent. However, it’s brilliant to have if you rent a basement apartment. The risk of water damage caused by the rental unit above you is higher (water flows downward). So, consider buying renter’s insurance to protect your contents and valuables and reduce the costs if you have to move out while repairs are done.
Landlords must ensure that the basement apartment meets provincial regulations and standards to ensure it is a safe and appealing living space. But, as a tenant, you should verify the legal status of the rental unit.
Landlords must be able to provide:
2. A fire certificate to confirm the basement apartment meets fire safety requirements.
3. A certificate of compliance to prove the basement is registered and compliant with regulations and all city bylaws.
You can file a complaint with the local municipality If a landlord doesn’t provide these documents. Landlords who do not meet compliance standards can face fines of up to $25,000. Regulations and safety features ensure that occupants and neighbourhoods are not at risk of injury, death, or severe damage.
Buying a home in Canada is a long-term commitment and can be more expensive than renting a home. So, it’s smarter to rent before you buy a house in any city. No amount of online neighbourhood or city research will give you as much insight as living in it.
Renting is a shorter-term commitment. And, as the whole country is new to you, you may want to wait until you are certain where you want to live. If you rent in your city of choice before buying a home, you can explore and experience different neighbourhoods.
If you buy a home, you may discover you don’t like the neighbourhood or the city. You may want to move to another city or province for better job opportunities in your field. Relocating to another home, city, or province is expensive. It’s better to take your time before you buy a home.
A basement apartment is a great choice if you want a temporary place. It allows you to gain a sense of the city before you buy a house. A more affordable basement apartment will decrease your living costs while you settle in Canada.
This is a problem that many newcomers in Canada face. And while this can be a stumbling block, you can rent a home in Canada without a credit history. Get tips here to rent a home in Canada without a credit score.
Renting a basement apartment can be an affordable housing solution, offering a beautiful, safe, and comfortable living environment. Explore your options! You may discover a basement apartment is the perfect solution.
Protecting yourself and your family against unexpected danger and risk is what insurance in Canada is all about for newcomers to Canada. Knowing what types of insurance are available before you arrive is smart financial planning that can save you money and build security. For example, the first type of insurance newcomers need to understand is renters insurance (or tenant insurance). Most landlords require it. And then there are health insurance plans. This guide can help you find the right insurance for your new life in Canada.
Insurance is one way that newcomers to Canada can manage risks. Things can go wrong. Accidents happen. Floods happen. And you don’t want to start over financially from scratch. So, when you purchase insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee (known as the premium). Insurance companies invest the funds securely, grow, and pay out when there’s a claim.
An insurance broker is not the same thing as an insurance agent. Brokers know how insurance policies work and can access more options than an agent. This lets them pick the best rates for the coverage you need from many insurance companies.
An insurance premium is the amount you or your business pays for an insurance policy. Insurance premiums pay for policies that cover things like healthcare, auto, rental, home, and life insurance.
Risk insurance protects your home and property from “risks and perils.” It covers property damage or loss from accidents or unforeseeable incidents (flood, sewer backup, frozen pipes, etc.)
Canada is renowned for its healthcare system, and quality healthcare is one of the reasons newcomers seek to build a life here. Government health insurance programs like the Ontario Health Insurance Plan (OHIP) and Alberta Health Care Insurance Plan (AHCIP) let you apply for coverage once you arrive in Canada and establish your permanent residency.
Buying travel medical health insurance to cover unexpected medical expenses before you and your family can join a government health insurance program is smart. Without it, you could end up paying significant out-of-pocket costs.
Once you arrive in Canada and establish your permanent residency government health insurance programs allow you to apply for coverage. But, in some provinces, there is a wait period before you are eligible for government health insurance. That’s where private insurance coverage is a good idea for both temporary visitors to Canada and people on the path to becoming permanent residents and Canadian citizens.
When purchasing visitor travel insurance, there’s no one-size-fits-all solution. As a newcomer to Canada, you must understand your options and select the right coverage based on key factors like age, dependants, health status, and deductible preference.
Buying travel medical health insurance can be challenging for newcomers and international students. It requires navigating the process especially if you have age-related risk factors and pre-existing health conditions. Finding the right coverage is important. It’s vital to know the basic requirements you or a loved one need before you buy a travel medical health policy.
Visitors to Canada Travel insurance isn’t just for visitors! It’s also beneficial to the following individuals:
Most renters in Canada get renter’s insurance and many landlords and buildings require it. It’s vital for newcomers and international students as it protects and reimburses you in an emergency. When you rent your first home as a newcomer or international student, remember that while you do not own the property, you most likely own the contents (furniture, electronics, personal possessions, valuables, etc.).
Renters insurance is a must-have because most landlords in Canada require it, and here are five reasons why you need it.
Your landlord’s insurance only covers the building you’re living in. It does not cover your family’s belongings. The landlord’s insurance can’t always protect you from things that may go wrong in your new home in Canada. Renters’ insurance protects you.
Having the right insurance is about protecting yourself and your family against unexpected risks. Knowing how different kinds of insurance in Canada can protect you even before you arrive is vital. Insurance is smart financial planning that can save you money and build security.
Recently, Dave Frattini, Managing Partner of Prepare for Canada and Rentals for Newcomers, sat down with Robin Ingle, CEO of Ingle International Insurance, to discuss the importance of Travel Medical Health insurance for immigrants arriving in Canada.
In their discussion, Ingle, whose mother was an immigrant, explained the Canadian healthcare system, how Travel Medical Health insurance for immigrants works, and why it’s important for newcomers. He emphasized the social-based nature of Canada’s healthcare system and the need for newcomers to buy medical insurance to avoid unexpected expenses. Ingle is an acclaimed specialist in special risk insurance.
Ingle provided valuable insights for immigrants on Travel Medical Health insurance and why it’s important to understand coverage levels and policy information. This can help newcomers who do not have provincial health insurance when they first arrive avoid unexpected and high medical costs.
Their discussion explains why newcomers to Canada (and international students) should prepare for healthcare and insurance costs before arriving in Canada. Ingle also dispelled myths about Travel Medical Health insurance.
Robin Ingle (RI): I come from an immigrant family. Two hundred years ago, my father’s family moved from Pennsylvania to Canada, and my mother moved from Finland to Canada for a better life with her family. That’s how they met.
After World War II, when Canada started receiving an influx of immigrants, my parents focused on health insurance for newcomers. That was before there was a social health care system in Canada. They concentrated on helping people in the way that Prepare for Canada helps newcomers acclimate to Canada, find housing, and the biggest part, health insurance.
Today, we work worldwide. Providing services and coverage to new newcomers is in our DNA.
RI: There are misunderstandings about the Canadian healthcare system. It is a social system, but it only applies to permanent residents in Canada who are part of a provincial government health insurance plan. If you do not have PR status, you’re considered a non-resident. If you are getting your permanent residency but haven’t applied for your provincial health plan, you’re considered a non-resident until you join the provincial plan.
In Canada, the costs of healthcare services for non-residents are high. Visiting a clinic can cost anywhere between $100 and $200. Going to a hospital and emergency room can cost anywhere from $2,000 to $5,000. If you have to stay in the hospital on an inpatient basis, it can be $3,000 or more per day.
Major hospitals charge $17,000 or more for a day’s stay in an intensive care unit. This is very expensive for people outside the provincial government health system.
An important thing people need to understand is that healthcare providers in Canada are private. The provincial government is the biggest payer and manager of the government health system. A private doctor bills the government, and the government pays the largest portion of their bills (only a small amount of patients are non-residents). The government pays the physicians and the hospitals. So it’s a slightly different system than in the UK or Europe.
RI: The cost is not high. For example, for a family, you will pay insurance for three months. You might pay upwards of $500 for three months to cover the waiting period before you get onto a provincial health plan. That would cover inpatient hospitalization, outpatient care, and emergency visits to a clinic.
Most newcomers who have come through the immigration process are healthy, so the cost is reasonable and in line with the type of risk.
You need to be prepared. You pay a small amount for the coverage and know you and your family will be covered if something happens, like an accident. It’s important to stress that any medical incident can be costly without provincial or private healthcare.
A while ago, my sister fell and broke her hip and had to go to the hospital. That was an accident. You could get the flu, or a bee sting and need to go to the hospital because of an anaphylactic shock. Insurance covers hospital visits under these plans.
RI: People can purchase insurance before or after they arrive. However, depending on the coverage, there is a 48-hour waiting period when you arrive. This means you can’t claim for a sickness within 48 hours of buying it.
RI: Newcomers do not want to begin their lives here with extra bills. Health insurance coverage is worth a small amount of money for anybody not covered under a provincial government health plan.
Also, Canadians returning from working, studying, or living outside Canada for more than 183 days must reapply for their provincial government health plan, depending on the province. And they have to wait up to three months to get that coverage. So insurance is not just for newcomers. It’s also for those who have been out of the system for some time.
RI: Anybody coming into Canada who is a non-resident, a newcomer, or anybody applying for permanent residency. Or anyone going through the immigration process as a refugee. Anybody in these categories considered a newcomer can apply.
First and second-generation Canadians who are already citizens often buy coverage when their families visit. They often don’t think about this because they’re now Canadian citizens. They don’t realize how much medical costs can be for visitors or grandparents visiting.
You also have new rules, like the Super Visa, where you can bring an older relative over for a period of time if you’re a new Canadian. So, you need Super Visa visitor insurance. You need a minimum coverage of $100,000 for 12 months. There are different categories, but anybody visiting who’s not covered should get coverage.
RI: There are no ineligible groups. If you do not have coverage under a provincial government plan, you should get it. And, if you have a pre-existing medical condition, you need to ask questions because the plans may not cover that medical condition.
If you’re (a visitor) taking medication for a pre-existing heart condition, for example, and go to the hospital and try to buy the coverage, you will not be eligible for most plans.
RI: Often, newcomers or Canadians bring relatives over and must buy visitor insurance or provide coverage before they enter a provincial health plan. They’ll buy the cheapest product, which means less coverage. I advise that they buy the mid-level coverage. With low coverage, you can get $100,000 or $50,000 worth, but that can disappear quickly. If you’re in the hospital for even a few days, it can cost $50,000, and the low-coverage insurance won’t cover anything else.
Choose between $350,000 and $500,000 worth of coverage. Make sure you’re covered for the full period you need. Ask for additional coverage if you need it.
RI: Here, it’s called Visitor to Canada insurance. Be sure you read the information provided and understand what is covered. Financial literacy is important, especially with insurance and financial products.
Ensure the insurance covers you and your family for doctor visits and hospitalization if needed. If you need medication for an emergency, ensure it is covered. For newcomers, that would be Super Visa insurance.
RI: Travel insurance in Canada draws a good distinction between the two.
Travel insurance in the Canadian market is traditionally for a Canadian citizen travelling outside of their home province in Canada. Travel insurance within Canada covers the difference between what the province and the insurance will cover. So, it’s a different level of coverage.
Also, when people leave their country of origin or their original country of residence, they often buy local coverage, which may not have the same level of coverage they will need in the Canadian market. So make sure you compare the products. We’ll provide background information if anybody has questions.
RI: Aha is a great property and casualty organization providing automobile, home, and business insurance access. We like how they do business, and we use their platform to compare products. We fit well because we have access to our products, and all major companies to get the right product to fit the individual’s needs. That makes a big difference. Plus, Aha provides information to help individuals understand what kind of coverage they need and how to get it. We do exactly the same thing.
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?”
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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