Finding Accommodation in Canada: What Newcomers Need to Know

This guide will help newcomers understand what to expect and how to navigate the Canadian housing market – and it’s packed with information about the various types of accommodations and tips for managing costs.

Key Takeaways

1. Canada’s accommodation options vary widely, from short-term rentals to home ownership.
2. Rental costs differ significantly by city, with urban centers like Vancouver and Toronto among the most expensive.
3. You’ll want to consider insurance as a renter in Canada (tip: it protects more than just your luggage), and home insurance is usually a requirement if you buy a home.
4. Understanding housing costs across provinces can help in making budget-friendly decisions.
5. Scams and hidden costs are common; newcomers should stay informed and cautious.

Types of Accommodation in Canada

Before we dig into the longer-term types of accommodation, we’ll dig into the first type you’ll need to know about: temporary accommodation.

Temporary Accommodation in Canada

Before you arrive in Canada, it’s crucial to at least have somewhere lined up for your first few days or weeks. Hostels and hotels are plentiful in urban areas, though you may wish to book well in advance to ensure you have the widest choice of temporary accommodation in Canada available to you. If your budget is limited while you stay in temporary accommodation, Hostelworld has an extensive collection of short-term accommodation to suit any budget.

Booking self-catering accommodation — perhaps for a few weeks, or even a month or two — is also a practical way to line up temporary accommodation in Canada for your arrival. The major player in this market is Airbnb, but there are also temporary apartment rental companies that provide excellent temporary accommodation for newcomers to Canada.

Your First Home in Canada

Since you’re still new in Canada at this point, you’ll likely be looking for some kind of rental or share accommodation.

Share Accommodation

Many newcomers begin with shared accommodations because they’re easier to rent without a credit score and they’re more cost-effective. Shared options often include a private room in a house or apartment, with shared common spaces like the kitchen and bathroom.

You can learn more about share accommodation and what it entails in our dedicated post about house sharing in Canada.

Keen to learn more? Check out our trusted partner, Sparrow.

Rental Properties

There are several types of rental accommodation in Canada, including houses, condominiums, and apartments.

• Basement Suite: A basement suite is a self-contained living space located on the lower level of a house, typically with its own entrance separate from the main residence.

• Bachelor Suite/Studio Apartment: where a single room serves as both the bedroom and living area.

• Apartments/Condos: Available as bachelor units (studio apartments) or with multiple bedrooms, condos and apartments are popular options across Canada. They often come with amenities like gyms or pools.

• Townhomes: A townhome offers more space, often with multiple floors, making it a great choice for families.

• Freestanding Homes: For those looking for more privacy, a detached house offers a standalone option, though it’s generally the most expensive rental type.

The list above generally shows the rental options in terms of size and cost. The smallest and cheapest options are listed at the top, while the larger and more expensive options are listed towards the bottom.

• Check out our tips for applying for a rental property in Canada to learn what you need to do to submit a winning application.

Buying A Home

Buying a home in Canada requires a deeper understanding of the Canadian real estate market and access to significant upfront capital. You can learn more about buying your first home on our dedicated page.

• Not sure if buying a home is the right move? Learn more about the renting vs buying a home decision.

Pros and Cons of The Different Types of Accommodation in Canada

Here’s a breakdown of the pros and cons of various accommodation types in Canada to help you decide which best suits your needs:

Shared Accommodation

• Pros: Cost-effective, especially in high-rent cities; provides a social setting and can help newcomers make connections; utilities may often be included.

• Cons: Limited privacy; shared spaces (kitchen, bathroom) can lead to conflicts over cleanliness or schedules; varying standards and conditions in shared housing.

Rental Accommodation

Pros of Renting

1. Flexibility: Renting isn’t a long-term commitment, which is beneficial for newcomers who may want to explore different neighborhoods or cities before settling down.
2. Lower Upfront Costs: Typically, the only upfront costs are the first and last month’s rent, plus a security deposit.
3. Less Responsibility for Maintenance: Landlords are generally responsible for major repairs and upkeep, which reduces the financial and time burden on renters.
4. Access to Amenities: Many rental properties, especially apartments and condos, come with amenities like gyms, pools, and security services that might be costly to set up in a home.
5. Short-Term Certainty: Generally, you sign a lease for a fixed period of time and, in some provinces, your rental cost can only increase by an amount set by the provincial government after a set period.

Cons of Renting

1. Rent increases or landlord decisions to sell the property can force tenants to move unexpectedly.
2. Monthly rent payments don’t contribute to ownership or equity building.
3. Renters are often restricted in terms of making modifications to their space.
4. Rent can increase annually.
5. Renting doesn’t necessarily help build your credit score.

You might note in number 5 that we say necessarily. One of our partners – Borrowell – helps newcomers report rental payments to one of Canada’s credit bureaus, which can have a positive impact on your credit score. You can learn more here.

Costs of Different Types of Accommodation in Canada

In a country as large and diverse as Canada, it can be difficult to answer this question. However, we are nothing if not resourceful and with that in mind, we will seek to provide you with the answer to how much rent in Canada is.

The cost of accommodation in Canada can vary depending on location, property type, and whether utilities are included.

• Apartments and Condos: Prices range from $1,300 in cities like Edmonton to over $2,700 in Vancouver for a 1-bedroom unit.

• Townhomes: Averages around $2,000 in mid-sized cities but can go higher in urban areas.

• Freestanding Homes: Renting a standalone house is significantly more expensive, often exceeding $3,000 in major cities.

In general, cities like Toronto, Vancouver, and Burnaby are among the priciest, while Quebec City, Montreal, and some smaller cities in Ontario offer more affordable rental options.

What If The Accommodation I Want Is Too Expensive?

According to cost of living comparison site Numbeo — which we highly recommend you refer to before and after arriving in Canada — one-bedroom downtown apartments in both Toronto and Vancouver are now topping $2,600 per month. That may not be attainable for you (since you only want accommodation costs to be around 25% of your take home pay per month).

Here are some quick tips to reduce your accommodation costs:

• Consider shared accommodation if location is the highest priority.

• If location is negotiable, there may be a more affordable neighbourhood outside the city centre with good public transit links.

• You could consider moving to another city altogether.

Documents Needed for Accommodation in Canada

The following table shows the typical documentation needed for each type of accommodation. Newcomers may find that Canadian documents, such as a Canadian credit score, are sometimes preferred, which can present a challenge.

• Shared Accommodation: Typically requires a government-issued ID and sometimes proof of financial stability like a bank statement or an employer reference.
• Temporary Accommodation: Requires valid ID and a credit card for booking.
• Rental Properties: Landlords often ask for proof of income (pay stubs or employment letter), bank statements, and references from past landlords.
• Buying a Home: You’ll need a mortgage pre-approval letter, proof of down payment, credit history, and employment verification. Learn more about how to get a mortgage.

Costs of Housing Across Canada

Rental prices in Canada fluctuate significantly by city and region. Here’s a quick look at some notable areas:

• Vancouver, BC: One of the most expensive cities, with average 1-bedroom rent around $2,700.
• Toronto, ON: Similar to Vancouver, Toronto’s downtown rental market is competitive, averaging around $2,600 for a 1-bedroom.
• Montreal, QC: Known for being more affordable, with 1-bedroom rents averaging around $1,300.
• Calgary, AB and Edmonton, AB: Mid-sized cities in Alberta with more budget-friendly options, averaging between $1,300 and $1,500.

For a more budget-conscious choice, newcomers might consider cities like Halifax, Gatineau, or Quebec City, which offer lower costs while still providing urban amenities.

City-specific guides to accommodation in Canada

The search for houses and apartments for rent in Canada begins with choosing the right neighbourhood. Visit these resources to help you learn more about your new surroundings.

• Where to Live in Vancouver Neighbourhoods Guide
• Where to Live in Toronto Neighbourhoods Guide
• Where to Live in Calgary Neighbourhoods Guide
• Where to Live in Edmonton Neighbourhoods Guide
• Where to Live in Montreal Neighbourhoods Guide
• Where to Live in Ottawa Neighbourhoods Guide
• Where to Live in Hamilton Neighbourhoods Guide

What To Know When Looking for Accommodation in Canada

Finding a place to live in Canada can be a smoother process if you keep the following points in mind:

• Rentals Start on The 1st: Most rentals in Canada start on the 1st of the month, with fewer options available mid-month. To maximize your options, consider arriving at least two weeks before month’s end, allowing ample time to explore different neighborhoods and set up viewings.
• Budget for a Security Deposit: Most rentals in Canada require a security deposit, which is often equivalent to half a month’s rent. Be prepared to have this amount available when signing a lease. If you have pets, your security deposit will be higher.
• Check for Furnishings: Rental properties in Canada vary in terms of furnishings. Some apartments come fully furnished, while others may require tenants to provide their own.

• Beware of Online Scams: As in any housing market, there are fraudulent listings aimed at scamming newcomers. Avoid sending money before viewing a property in person and confirming details with the landlord.

• Know Your Tenant Rights: Each Canadian province has its own tenant laws. Understanding these regulations is essential to avoid misunderstandings and protect yourself in case of disputes. For example, in Ontario, rent increases are limited to once a year, with a 90-day notice required.

• Ship Your Stuff – Affordably: Shipping items internationally can be costly, but The Relocator, a free service that searches through more than 500 shipping companies, can help you find competitive quotes for shipping your belongings to Canada. Whether it’s furniture, electronics, or personal items, budgeting for moving costs will ensure a smoother relocation experience.

Canada’s housing market offers diverse options to suit newcomers with different needs and budgets. While finding the right accommodation can be challenging, understanding the types of housing, typical costs, and necessary documentation will ease the process. By following this guide, you’ll be better prepared to find a home that supports your settlement journey, providing stability and comfort as you start your new life in Canada. 

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