Finances · Quebec

Should I buy or rent in Quebec in 2026?

The real question isn't "does my mortgage payment beat my rent?", but "which of the two paths leaves me with the most net worth in 25 years?". And the answer often comes down to a single condition we almost always forget.

Buying or renting is rarely a matter of universal common sense: it's a matter of numbers and lifestyle. The classic trap is to compare a monthly rent to a mortgage payment. But buying drags along costs that rent doesn't (welcome tax, notary, maintenance, selling costs), while renting frees up cash you can invest. To compare fairly, you have to track the net worth of both scenarios over time.

Buying and renting: what each option gives you

Renting

Renting offers flexibility: you move without transaction costs, you don't carry the risk of a falling market, and heavy maintenance is the landlord's job. In Quebec, rent increases are also overseen by the Tribunal administratif du logement. The flip side: you build no equity, and it takes discipline to invest the difference rather than spend it.

Buying

Buying is a form of forced savings: each payment repays a bit of principal, and the property value tends to rise over the long term. It also brings more stability and control. In return: a sizable down payment, high entry and exit costs, maintenance on your shoulders, and reduced mobility.

The costs we forget to count

This is often where the "rent vs payment" comparison goes wrong. Here are the essentials:

Expenses	Buying (owner)	Renting
Up front	Down payment, welcome tax, notary, inspection, moving	Deposit / credit check, moving
Recurring	Mortgage, municipal & school taxes, insurance, condo fees, maintenance (~1%/yr of value)	Rent, tenant insurance
On exit	Brokerage fees on resale (often ~5%), discharge	—

💡 Keep in mind: a down payment under 20% triggers a CMHC insurance premium added to your loan. And selling costs, paid only once, can on their own wipe out several years of appreciation if you resell too soon.

Two worked scenarios (computed with Immobascule)

Common assumptions: 4.5% mortgage rate, 25-year amortization, 3%/yr property appreciation, and a comparable after-tax investment return. The figures below are starting points — your situation can change everything.

Scenario 1 — Buying in Montreal ($600,000)

With 20% down ($120,000), the loan is $480,000, i.e. a payment of about $2,657/month; no CMHC premium (down ≥ 20%), and a welcome tax of about $7,200. In a big city, with the equivalent rent often well below the total cost of owning, renting and investing the difference frequently wins — provided you actually invest that gap.

Scenario 2 — Buying in the regions ($350,000)

With 5% down ($17,500), a CMHC premium of about $13,300 is added to the loan (total ~$345,800), for a payment of about $1,914/month and a welcome tax of about $3,500. Where the rent/owning gap is thinner, buying often wins after a few years, once the entry costs are amortized.

The lesson from both scenarios: the wider the gap between rent and the cost of owning, the more renting-and-investing wins; the thinner it is, the faster buying wins. And the horizon matters enormously — reselling in 2-3 years almost always favours renting.

▸ Run your own scenario on Immobascule

The crucial condition: investing the difference

"Rent and invest" only beats buying if you actually invest the difference every month. In reality, many renters spend that gap. If that's you, buying — forced savings — can become the better financial choice, even when theory says otherwise. That's why a good calculator doesn't just give a winner: it also shows the condition ("if the difference is invested at X%/yr").

The HBP and the FHSA: the Quebec angle

In Quebec, a first-time buyer can tap their RRSP via the HBP (up to $60,000, tax-free, repayable over 15 years) and use the FHSA for their down payment. These levers change the equation: they reduce the loan and the payments, but pull out money that would have grown tax-sheltered. A good tool should account for them rather than ignore them.

5 questions to ask before buying

1. How long will I stay? Less than 5 years: renting is often safer.
2. Do I have the down payment and the entry costs (notary, welcome tax, inspection) without emptying my emergency fund?
3. Will I really invest the difference if I keep renting?
4. Does my housing budget stay reasonable (ideally under ~32% of gross income)?
5. Am I ready for the responsibilities (maintenance, surprises, immobility) of an owner?

In conclusion

Financially, buying or renting depends on three levers: the rent/owning-cost gap, the return on your investments, and your time horizon. Beyond the numbers, the desire to own and your quality of life matter just as much. The best way to decide: test your scenario, with your real amounts.

▸ Compare buy vs rent with my numbers

This article is provided for informational purposes only and does not constitute financial, tax or legal advice. Amounts are estimates based on assumptions (4.5% rate, 25-year amortization, 3%/yr appreciation) and can vary with your situation, the municipality and the market. Consult a professional before making any decision.