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 usually 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.
Advertisement:
Explaining the Rental Process to Newcomers
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.
Advertisement:
In addition to using their experience and contacts to help you find a rental, “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?”
Ali says a realtor 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.
Advertisement:
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
5 Common Things Newcomers Ask a Realtor
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:
1. Is it expensive to work with a real estate agent?
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.
2. Will searching for a rental on my own be less expensive than using a real estate agent?
Newcomers who choose to find their own apartment 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 at the same time 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.
3. Can I work with more than one real estate agent?
A knowledgeable realtor can recommend the neighbourhoods that best suit your needs (parks, schools, public transit)
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.
4. Why do real estate agents recommend that I buy renters insurance?
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 who are 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.
5. How much would I pay for a one-bedroom apartment in Canada?
As of April 2024, the national average asking price for a one-bedroom apartment was $2,117, according to Rentals.ca National Rent Report. That’s a 12.7 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 $2,633. In Toronto, it is $2,471. The cheapest rent in Ontario in a large or medium-sized city is Windsor at $1,546. Rents are more affordable in the western provinces, particularly in Saskatchewan. The asking rent in Saskatoon is $1,197 for a one-bedroom and $1,267 in Regina.
If you have recently arrived in Canada, discover how to find a realtor to find the perfect home for you!
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.
The latest Canada job market report shows that the unemployment rate rose to 6.1 percent in March, 2024 as the population increased by 91,000 month-over-month and more people searched for work.
According to Statistics Canada, the unemployment rate was 5.8 percent in February, the most significant jump since the summer of 2022.
Advertisement:
StatCan’s newest labour force survey also revealed a minimal change in employment in March. The economy lost 2,200 jobs after posting modest gains in the first few months of 2024.
Job Market Report Shows a Big Drop in Self-employment Numbers
Advertisement:
However, while the Canadian job market was flat in March, Scotiabank Vice-President and Head of Capital Markets Economics Derek Holt said the survey’s “underlying details” were better.
Holt points out that self-employment drove the job market weakness, with a 29,000 drop. That drop offset a 27,000 gain in payroll jobs (split between a 15,000 rise in private sector payrolls and a 12,000 rise in public sector payrolls).
Canadian Jobs Breakdown
PROVINCE
M/M
Quebec
-18.0k
Saskatchewan
-6.0k
Manitoba
-4.3k
Alberta
-3.2k
New Brunswick
-1.7k
Nova Scotia
-1.5k
Prince Edward Island
-0.1k
Newfoundland & Labrador
0.0k
British Columbia
+6.6k
Ontario
+26.1k
EMPLOYMENT TYPE
M/M
Full Time
-0.7k
Part Time
-1.6k
Public Sector
+11.9k
Private Sector
+15.2k
Self Employed
-29.3k
Sources: Scotiabank Economics, Statistics Canada
“Self-employed jobs are valuable in Canada,” said Holt, “but the lack of any means to verify (the self-employed) category lends caution. I’m more impressed by the payroll gain.”
Holt also noted that youth employment was the most brutal hit in the labour market.
In March, jobs fell by 28,000 among those aged 15 to 24. The jobless rate for that age group jumped to 12.6 percent.
That’s the highest since September 2016, outside of 2020 and 2021.
Holt said that while youth employment is essential, “the greater economic impact, including ties to the housing and consumer markets, always comes more from the (25 years and older) category.”
The temporary workers category of immigration, which has surged over the past few years, left fewer openings for youths to fill in terms of seasonal March break-related employment, said Holt.
He added that what happens to the youth job category for the remainder of 2024 partly depends on whether the federal government successfully achieves its new targets for temporary workers.
Later this year, the Canadian government plans to cap the number of new temporary residents it will accept and reduce the number of workers in certain sectors.
Canada plans to lower the number of temporary resident arrivals it accepts.
Starting in September 2024, the federal government will reduce the maximum limit of temporary residents to 5 percent of the population through 2027. Temporary residents currently make up 6.2 percent of the total population.
Employment Rose in Construction
The latest Canada job market report revealed that job losses in March occurred in the accommodation and food services sector, followed by wholesale and retail trade and professional, scientific and technical services.
Sources: Scotiabank Economics, Statistics Canada
Employment rose in four industries in March, with the healthcare and social assistance sectors leading the way.
In the construction sector, employment rose by 15,000 (1.0 percent) jobs in March, little changed from March 2023.
Statistics Canada says the rise in the jobless rate was driven by an increase of 60,000 people searching for work or temporarily laid off.
Rise in Wage Growth Continues
The country’s total number of unemployed people stood at 1.3 million last month, an increase of nearly 250,000 compared with a year ago.
Despite weaker labour market conditions, wage growth increased, with average hourly wages rising 5.1 percent annually.
As for the 91,000 rise in population growth, Holt observed that this “will fan concern that Canada is not generating enough jobs in relation to the immigration surge.”
“I’ve been saying for ages that Canada’s economy cannot absorb this magnitude of immigration quickly,” said Holt.
Record Population Growth Continues
Year over year, Canada’s population has grown by over one million people.
January and February 2024 saw the strongest back-to-back population growth in Canadian history.
Canada is on track to settle (or exceed) 485,000 newcomers in 2024 and 500,000 in 2025.
However, newcomers account for almost all growth in Canada as the population ages more quickly because of lower fertility rates and longer life expectancy.
“Slowing non-permanent resident arrivals will make the Canadian population older and make the impact of the ongoing wave of baby boomer retirements somewhat steeper,” warns RBC’s Nathan Janzen.
More People are Looking for Work
However, said Janzen, “slower population growth could ease price pressures in some pockets of the economy where supply has been slow to adjust to increased demand, particularly for housing.”
The increase in the jobless rate in March was also caused by an increase of 60,000 people looking for work or temporarily laid off.
Canada’s total number of unemployed was 1.3 million in March, an increase of nearly 250,000 compared with March 2022.
CanadaJob Market Report Shows More Jobs Created in Ontario
In March, employment in Ontario, the country’s most popular landing spot for newcomers, was up 0.3 percent (26,000 jobs), the second increase in three months.
Employment, however, was down in Quebec, Saskatchewan and Manitoba.
Meanwhile, wage growth increased, with average hourly wages rising 5.1 percent annually.
Canada’s annual inflation rate in February fell to 2.8 percent, edging closer to the Bank of Canada’s stated goal of a steady 2 percent target. Inflation in Canada hit a high of 8 percent in mid-2022.
On April 10, the Bank of Canada announced its benchmark interest rate would remain at 5 percent. However, Bank of Canada president Tiff Macklem indicated that improving conditions regarding the bank’s inflation target could set the stage for a rate cut in June.
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.
Newcomers to Canada and international students know what a roommate is, but what about a housemate?
While roommates might be equal (and often uneasy) partners in an expensive and usually overpriced rental, a housemate is different. As a housemate, you rent a room in a shared residence and live with the homeowner and possibly other housemates.
Advertisement:
The owner is the host, who benefits from “home-sharing” by renting out a room in their home. This also helps to pay their mortgage or lower living costs.
Housemates Pay Less to Rent
Advertisement:
Housemates can find more affordable rooms in desirable locations like Toronto through home-sharing.
That same report showed that Vancouver’s average asking rent for shared accommodations (roommates) was $1,406 per person, and Toronto’s was $1,280 per person.
Also, the average asking rent for shared accommodations nationally increased by 12 percent annually.
The competition for rental housing in Canada remains fierce. Vacancy rates in most large and medium-sized cities are 1.5 percent. A three percent vacancy rate is suitable for renters, while a rate of less than 2 percent drives rental prices up.
Rental prices are predicted to climb as Canada welcomes 485,000 newcomers in 2024 and 500,000 in 2025 (those figures do not include international students or temporary foreign workers).
According to Sparrow, there are 12 million empty bedrooms across Canada, including 5 million in Ontario.
Other Benefits of Becoming a Housemate
Housemate matches are based on compatibility and shared living preferences.
In addition to the cheaper rent price, there are other benefits to being a housemate as opposed to a roommate:
Homesharing platforms like Sparrow ensure homeowner/housemate matches are based on compatibility and shared living preferences. The roommate experience, on the other hand, tends to be haphazard.
Housemates can often negotiate rent discounts by doing household tasks for the homeowner.
Monthly living expenses are lower when renting a room via home-sharing as housemates share costs for utilities, internet, etc.)
Homesharing can often place you in desirable residential neighbourhoods that rental unit roommates can’t access.
For newcomers to Canada and international students, becoming a housemate can give you an instant community to help with your transition (and you might also make a lifelong friend in the homeowner).
Homesharing platforms such as Sparrow screen and match the housemate and the homeowner, offering a level of safety and security unavailable to roommates. Their profile verification includes background checks and interviews to create trust and peace of mind for hosts and housemates.
Housemates can rent for two months or longer, depending on their needs. However, roommates are often locked into one-year leases.
It’s FREE to register to become a housemate. The homeowner pays the home-sharing platform for their services.
Becoming a housemate can offer a much different experience than being a roommate, and cheaper rent. It provides a strategic alternative for newcomers to Canada seeking an affordable first home in Canada that provides affordability, safety, security, and community.
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.
For newcomers and international students arriving in record numbers, it’s helpful to understand how the current inflation rate in Canada can affect how much you pay for housing, groceries, transportation, and other expenses. Staying informed about inflation can help you anticipate changes and manage your finances accordingly. Stay up-to-date with recent changes so you can manage the cost of living in Canada.
Advertisement:
Inflation in Canada fell below 3 percent for the second consecutive month. In February 2024, the country’s inflation rate peaked at 2.8 percent. That’s a trend in the right direction, prompting many (including newcomers and international students) to ask, “When will the Bank of Canada (BoC) initiate interest rate cuts?”
Advertisement:
The current BoC rate is paused at 5 percent.
Tiff Macklem, the BoC governor, has held fast to the theory that interest rates must hit the bank’s target of 2 percent and remain there before cuts begin.
Rapid population growth continues
Still, January’s 2.9 percent and February’s 2.8 percent have generated hope that cuts will begin and lower borrowing costs, the price of commodity goods, and mortgages.
The latest data from Statistics Canada show that the unemployment rate in February was 5.8 percent, compared to 5.7 percent in January.
Year-over-year, Canada’s population grew by 1,031,200 people, but employment rose by only 368,000 jobs.
Advertisement:
Population growth in February and January 2024 made them the strongest back-to-back months for population growth in Canadian history.
The Canadian government is on track to settle (or exceed) 485,000 newcomers in 2024 and 500,000 in 2025.
According to Statistics Canada, out of the 1.27 million immigrants added to the population in 2023, 471,800 were permanent immigrants, and 804,900 were non-permanent residents (NPRs).
Gasoline prices had little impact
StatCan also highlights that 2.66 million NPRs lived in Canada on January 1, 2024 (including 2.33 million permit holders and their family members and 299,000 asylum claimants with or without work or study permits).
As for February’s inflation numbers, most economists expected it to be 3.1%. Some of the factors affecting the February rate include:
Internet service prices decreased by 3.2 percent
Cellphone plans decreased by 26.5 percent from a year earlier for Canadians who subscribed to a cellphone plan
Clothing and footwear prices fell by 4.4 percent and 5.3 percent, respectively.
The price of food purchased from grocery stores rose by 2.4 percent in February on a 12-month basis, down from 3.4 percent in January. (Grocery inflation peaked at more than 11 percent in 2022 and 2023).
Gasoline prices jumped an average of 4 percent in February from January (that’s why economists forecast a higher rate of overall inflation).
Housing costs in Canada continue to drive inflation. Mortgage interest (up 26.3 percent) is the biggest factor behind it.
According to the latest report from Rentals.ca, asking rents for all residential property types in Canada averaged $2,193 in February. That’s an increase of 10.5 percent year over year and the fastest annual growth rate since September 2023.
In February, rents nationally on all property types decreased marginally by 0.1 percent month-over-month.
A one-bedroom apartment in Vancouver and Toronto (popular “Gateway” cities for immigrants) rents for $2,653 and $2,495 monthly, respectively.
Immigration a factor behind rent inflation in Canada
“Rent continues to soar,” says Derek Holt, Scotiabank‘s Vice President and Head of Capital Markets Economics. “Likewise for shelter costs that account for about one-quarter of the CPI basket excluding mortgage interest. And no, the BoC cannot just ignore one quarter of the basket.”
The impact of the rapid increase in immigration on rents across Canada has been substantial.
As Wolf Richter of WolfStreet.com points out, “the Bank of Canada, in discussing its interest-rate-policy decisions and inflation, has been pointing at the surge of immigrants as the source of rent inflation, which has caused services Consumer Price Index (CPI) to be stickier and higher than hoped for, even as the homeownership CPI has started to cool a little.”
“New immigrants,” said Richter, “largely rent homes when they first arrive, rather than purchase homes, and so home prices have been pressured down by higher mortgage rates that are not compatible with the crazy-high prices in many markets.’
The Bank of Canada is scheduled to meet on April 10 to discuss interest rates. Economists forecast that the rate will remain at 5 percent for now.
“The BoC will require more than just a lousy couple of months of soft inflation data before deciding to pull the trigger on a rate cut and especially on meaningful rate cuts in a plural sense,” observed Holt.
Will rates begin to fall this summer?
Holt pointed out that “rent continues to soar. Likewise for shelter costs that account for about one-quarter of the CPI basket excluding mortgage interest. And no, the BoC cannot just ignore one quarter of the basket.”
For newcomers and students arriving in Canada this year, the consensus prediction among economists is that rates will begin to fall this summer, but nothing is certain.
Holt says dropping rates too soon “would be a high-stakes gamble that could easily backfire and add another black mark against Macklem’s leadership” of the Bank of Canada.
Commenting on the recently released Bank of Canada’s surveys of business and consumer expectations, Holt said it’s obvious that Canadian consumers don’t believe in the bank’s 2 percent inflation target.
“Consumers signalled they expect inflation to be 3.1 percent five years out which is up by half a percentage point since the last quarterly survey,” said Holt.
“We all know that nobody can forecast where inflation will be five years from now, but the signal is that consumers don’t believe in the BoC’s 2 percent inflation target.”
Steve Tustin is the Editor for Rentals for Newcomers and contributing editor for Prepare for Canada. He is the former managing editor of Storeys.com and a former senior editor at both the Globe and Mail and the Toronto Star.
*Prepare for Canada did not use AI-generated content to write this story; sources are cited and credited where possible.
For newcomers and international students eager to better understand Canada through sports, here’s a fact: The Toronto Blue Jays are CANADA’S baseball team.
True, the Jays are the country’s ONLY Major League Baseball (MLB) team, but they are extremely popular across Canada.
Advertisement:
(There used to be two teams, but the Montreal Expos departed for Washington in 2004. The Expos were Canada’s first MLB team, and Expo fans are still in shock and hoping they will return.)
Some similarities to cricket
Advertisement:
For new Canadians whose passion is cricket, there are similarities with baseball and maybe a shared heritage, as this story explains. Numerous cricket leagues exist across Canada, and many are under the direction of Cricket Canada.
Regarding the Blue Jays’ popularity, sports media analyst Adam Seaborn points out they have the most extensive fan base in Major League Baseball.
Baseball fever returned to Canada on Monday, April 8, when the Blue Jays played their season home opener at the Rogers Centre, defeating the Seattle Mariners 5-2 (the Jays opened their 2024 season on the road with an 8-2 win in Tampa, Florida, on March 28 against the Tampa Bay Rays).
The Blue Jays have won two World Series
The Jays have been playing since 1977. They’ve had some great success for a relatively new franchise (the history of organized baseball in North America dates back to 1846).
In 1992 and 1993, they won back-to-back World Series Championships, the ultimate prize in North American MLB (baseball is played in over 100 countries, and there is an actual World Championship of Baseball).
Advertisement:
But Americans decided long ago that the winner of the playoff between the champion of the American League (where the Blue Jays play) and the National League would be known as the World Series champion.
The last time the Jays were genuinely competitive was in 2015 and 2016. Blue Jay fever swept the nation as the team went deep into the post-season playoffs
So, if you’re interested in becoming a Blue Jays fan or just checking them out, here are some facts!
The Blue Jays:
Play 162 games (split home and away) per year (not including playoffs)
Play in the American League of Major League Baseball (MLB has 15 teams in three divisions. There are 15 teams in the National League of MLB in three divisions. The eventual playoff winners in the American League and the National League for the World Series Championship.
Have the highest average regular season viewership among all Major League Baseball teams. The games are also on the radio, and most major media outlets in Toronto report daily on the Jays
Play at the Rogers Centre, which has a retractable roof and is usually open for roughly 50 plus of the 81 home games a year, depending on the weather. A day at a Jays game can be a fun day in the sun
Had an average home game attendance of 37,307 in 2023
Home game crowd is typically 57 percent male and 43 percent female
Highest-paid player on the team is right-fielder George Springer. He makes $24.2 million U.S. a year
Players to follow this year include shortstop Bo Bichette, first-baseman Vladimir Guerrero Jr, starting pitcher Kevin Gausman, and relief pitcher Jordan Romano
MLB-licensed game shirts can cost over $200 Cdn.
Tee shirts can cost as little as $12, depending on where you shop.
Season ticket costs vary depending on the seating location within the Rogers Centre. According to Ticketmaster, the average ticket cost to see the Jays live at the Rogers Centre this season is $75.
Ticket booth located at the Rogers Centre in Toronto.
Other baseball facts:
There are many famous former Blue Jay players. Still, those whose sweaters hang in the Level of Excellence include José Bautista, George Bell, Joe Carter, Carlos Delgado, Tony Fernandez, Roy Halladay, Dave Stieb, and former manager Cito Gaston. Broadcaster Tom Cheek and club executives Paul Beeston and Pat Gillick are also honoured
Though six players who at one time played for the Blue Jays have been inducted into Baseball’s Hall of Fame, only one, second-baseman Roberto Alomar, was inducted as a Blue Jay
For newcomers to Canada interested in having their daughters or sons play baseball, it is estimated that 200,000 Canadians played baseball in 2023 in amateur leagues and baseball programs across Canada. Leagues can start as young as four years old.
When You Belong, You Believe
The Jays Care Foundation is a charitable arm of the Toronto Blue Jays that believes baseball for development programming can play an important role as an effective, low-cost intervention to address pressing mental and physical health challenges for children and youth nationwide.
Their motto this year is “When You Belong, You Believe.” Their goal is to build a Canada where kids of all backgrounds and abilities have a place on a team where they belong.
If you’d like to learn more about baseball in Canada and the Blue Jays, here are some helpful links:
Steve Tustin is the Editor for Rentals for Newcomers and contributing editor for Prepare for Canada. He is the former managing editor of Storeys.com, a former senior editor at the Globe and Mail and the Toronto Star and former sports editor of The Star.
*Prepare for Canada did not use AI-generated content in the writing of this story, and all sources are cited and credited where possible.
