What Newcomers Need to Know About Renting and Buying a Home in Canada
Finding a suitable place to call home is one of the top priorities for newcomers to Canada.
With a wide range of housing options, it can be difficult to decide between buying and renting, and whether a short-term or long-term solution is the best fit for your needs. In this article, we'll provide some insights into the pros and cons of both.
Renting a Home
While buying a home has its benefits, renting can be advantageous for those who value flexibility and do not want to commit to a long-term investment. Renting a home can be the preferred choice for some newcomers as it allows you to move quickly, however, it also means that you are not building equity.
When deciding whether to rent your home, be sure to consider your budget and the terms of the lease. For example, painting the rental may not be allowed. It is also important to factor in additional costs beyond rent, such as utilities, internet, renter's insurance, and home phone service that may not be included in the cost of your rent depending on your lease terms. There is also no guarantee that the landlord will renew the lease once it has expired.
Finally, if you do decide to rent, it's essential to understand your tenant rights and responsibilities under Canadian law, as well as the terms and conditions of your lease agreement once you find that suitable place.
The CMHC also has a very helpful guide on renting a home in Canada that you can download for free.
Buying a Home
Buying a home is a significant financial commitment especially for newcomers to Canada who are trying to get established in their new country, but it has its advantages. Owning a home gives you a sense of permanency and allows you to put down roots in your community. It means you can make permitted renovations to the property if you wish, and not have the headache of moving when the lease expires. Home ownership, however, also comes with responsibilities and expenses such as mortgage payments, maintenance, repairs, home insurance, and property taxes.
If you're a newcomer to Canada, you may be concerned about your ability to secure a mortgage, particularly if you don't have an established Canadian credit history. The good news is that TD offers solutions for newcomers to Canada to help you finance your first home in Canada. With the help of a TD Mortgage Specialist, you can determine if you're eligible for a TD mortgage or TD Home Equity FlexLine and receive guidance throughout the process. TD’s flexible mortgage features, such as payment frequency and lump sum payments, could allow you to adapt your payments to fit your needs and make homeownership more accessible.
The Canada Mortgage and Housing Corporation (CMHC) has a helpful guide on home buying in Canada that you can download for free.
Key things to consider:
If you're a newcomer looking to rent or buy a home in Canada, there are a few additional factors to consider beyond budget, location, size, and features.
- Look into the requirements for renting in Canada. For example, some landlords may require a credit check, rental history, and proof of employment or income.
- Consider the local housing market and whether it's a buyer's or seller's market, as this can impact your ability to negotiate rental or purchase terms. Additionally, it's important to research the community and neighbourhood you're interested in, including factors such as safety, accessibility to amenities, and schools, if you have children.
So, to buy or to rent? There is no one-size-fits-all solution. The decision you make will depend on your individual circumstances and future plans. Whatever your decision, be sure to do your research and consider all the factors before making a final choice.
Why Choose TD?
150 years helping Canadians:
TD has a proud history of delivering financial solutions to Canadians for more than 150 years. TD also brings a century of experience helping newcomers navigate the unique challenges of the Canadian banking system.
With over a thousand branches, a reputation for excellence in financial services, and the ability to also serve you in more than 60 different languages, TD has become one of the largest and most trusted banks in Canada, now serving 16 million Canadians.
TD offers online support and resources of interest to newcomers on topics such as banking. basics, moving to Canada, credit score essentials, and more. TD is open longer hours for your convenience. TD has thousands of ATMs across Canada to help you take care of your everyday banking quickly and easily.
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