5 years of rent could cover a home down payment in Mississauga or Ontario

Those looking to save for a down payment on a home will find much of their money going to rent in cities across Ontario including Mississauga.

A new report from real estate brokerage Zoocasa looks at how much rent could have been redirected toward homeownership.

Zoocasa calculated the total rent using Rent.ca’s average one-bedroom rental prices from 2020 to 2025. The total sum was then compared to the down payment a February 2025 homebuyer would need to purchase the average-priced home in each respective city.

The total rent paid in every major Canadian city over that period could have covered a home’s down payment, sometimes two or even three times over, Zoocasa found.

Although rents have declined in Mississauga, a one-bedroom apartment is still expensive at an average of $2,264 in January. And Mississauga tops Zoocasa’s list for high rent and down payment costs.

In Mississauga, five years an average rent could cost you $120,000, according to Zoocasa’s calculations. A down payment is just under $80,000 so in five years renters have spent $40,000 over down payment costs.

In more expensive markets — Toronto and Vancouver — the amount spent on renting a one-bedroom apartment for just four years could have been enough to put a minimum down payment on a home worth over a million dollars, the report found.

Renters in other cities have a better chance to save for a home.

Mid-range cities like Ottawa, Hamilton, Calgary, Montreal, Kitchener, and Halifax would allow renters to save the equivalent of two to three down payments, putting homeownership more within reach.

Meanwhile, five years of rent could cover three to four down payments in more affordable cities like Edmonton, Winnipeg, Regina, and Saskatoon. This means renters in these cities could have bought a home multiple times instead of paying rent or ultimately made a more substantial down payment, which would reduce overall costs in the long run.

Choosing a more affordable rental market can significantly improve long-term financial planning, Zoocasa noted. People with flexible jobs or the ability to work remotely might consider a move. Edmonton and Calgary are two examples. Renting in Edmonton costs $1,362 monthly, leaving more disposable income for savings or investments. A renter in Edmonton could afford a home sooner, with a minimum down payment of just $21,568.

For renters looking to break into the housing market, several programs can help make saving for a down payment more manageable.

The First Home Savings Account is a tax-advantaged account that allows first-time homebuyers to set aside funds specifically for a down payment.

Canada lowered down payment requirements for homes up to $1.5 million. Previously, homes priced above $1 million required a 20 per cent minimum down payment and were not eligible for mortgage insurance. Now, homes priced up to $1.5 million qualify for tiered down payments, reducing the upfront cash burden for buyers in high-cost markets.

For more information, see the full report from Zoocasa here.

Lead photo: Pixabay