Newcomer in Montreal in 2026: rent or buy? CMHC rents, the real cost of a $450,000 condo, the break-even point and the 3-year rule

Buying · Newcomers · Montreal 2026

Renting costs less per month, buying costs less over three years: both sentences are true, and your horizon decides. Here are Montreal's real rents, the full cost of a $450,000 condo, and the simple rule.

For a newcomer in Montreal, renting the first year remains the rule and buying in the second the exception that gets calculated. According to CMHC, the average rent for a two-bedroom apartment in the Montreal area was $1,346 in October 2025, up 7.2% in a year, but the asking rent for a unit that frees up runs around $1,930 (third quarter of 2025), and the vacancy rate rose to 2.9% (2.1% the year before, 8% in new buildings), giving tenants a bit more choice. Buying a $450,000 condo with 5% down costs about $2,175 a month in mortgage at 4.24% over 30 years (insured loan $444,600), plus $350 to $500 in condo fees, $250 to $350 in taxes and $40 in insurance: about $2,965 a month, of which about $1,571 is interest in the first year. The equivalent rent is therefore cheaper each month, but buying builds about $7,249 of equity a year and follows the market. The rule: buy if you are staying at least three years in the area (purchase and resale costs, about 8% of the price, amortize over that period), if your job is stable after probation, and if the down payment and 1.5% of closing costs are in Canada; otherwise rent, build your credit and your FHSA, and buy in year two or three.

Montreal's rental market in 2026

Indicator (CMHC, Montreal area)ValueNote
Average rent, 2 bedrooms, existing stock$1,346 a month (October 2025)+7.2% in a year; leases in place, often old
Asking rent, 2 bedrooms≈ $1,930 a month (Q3 2025)What a new tenant pays; flat over a year
Vacancy rate2.9% (2.1% in 2024)8% in buildings 3 years old or newer
Rental units under construction≈ 26,000The market is expected to keep loosening in 2026

The full cost of a $450,000 condo

ItemPer monthNote
Mortgage (5% down, insured loan $444,600, 4.24%, 30 years)$2,175Of which ≈ $1,571 interest in year one
Condo fees$350 to $500Depends on the building and the contingency fund
Municipal and school taxes$250 to $350≈ 0.8% to 0.9% of value per year
Home insurance≈ $40Condo, contents and liability
Monthly total≈ $2,965Versus ≈ $1,930 renting; the gap is equity and ownership costs
Down payment and closing costs$22,500 + ≈ $12,000 (notary, welcome tax net of the credit, 9% tax on the premium, inspection)Gross income required ≈ $98,000

Illustrative calculation with the mortgage calculator; median condo prices by borough on our "buying a condo" pages.

The break-even point

Over three years, the tenant at $1,930 a month spends about $69,480. The owner spends about $106,740 plus about $36,000 in purchase and resale costs (notary, welcome tax, commission at resale), close to $142,740, but recovers about $21,747 of repaid principal and the change in the condo's value: at 0% appreciation, renting wins; at 3% a year (about $42,000 on $450,000), buying catches up with the tenant around year three; at five years, buying wins in most scenarios. Hence the three-year rule, and the preference for a house or a plex over a new condo when the horizon is short, because new builds resell less well in the first years (see rent or buy in Quebec).

The first year renting, put to use

Open and fund an FHSA ($8,000 deductible), build a credit score with a card paid monthly, finish probation, repatriate the down payment, choose the area by living it (real commute, school, groceries), and meet a mortgage broker by month six to learn the attainable price. A 12-month lease ending July 1 can be negotiated with the landlord to leave earlier (assignment or sublet, allowed in Quebec) if the purchase comes first.

Frequently asked questions

Is it better to rent or buy when arriving in Montreal?

Rent the first year in most cases, buy as soon as you are sure to stay three years, the job is stable and the down payment is in Canada.

How much is rent in Montreal in 2026?

On average $1,346 for two bedrooms in the existing stock according to CMHC (October 2025), but around $1,930 for an advertised unit; vacancy is at 2.9%.

How much do you need to earn to buy a $450,000 condo?

About $98,000 in gross income with 5% down, at the 6.24% stress test.

Can a newcomer buy in the first year?

Yes, as a permanent resident or on a work permit valid 183 days, with Canadian income and a documented down payment; the question is whether it is the right time, not whether it is allowed.

To run your own numbers: the commission calculator, our fees and the mortgage calculator. French versions are linked below.

Our proof, not our promises

The Loaa & Manseur team, led by Lotfi Manseur and Loaa Al Daow, is the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 of large residential teams according to the official RE/MAX ranking, computed on actual transactions. Its Google profile counts 221 reviews with a 4.9 rating. Its offices are at 55 avenue de l'Équinoxe in Brossard, one bridge from the island, and every broker's licence can be checked in the OACIQ public register. Three things to verify yourself before calling us, and to demand of any other broker.

Also available in French: version française de ce guide.

Published September 7, 2026 by the Loaa & Manseur team, the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 according to the official RE/MAX ranking. Tell us about your project.

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