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Is real estate investment in Canada still profitable?

The real estate market has been slightly unpredictable since the beginning of the pandemic. However, apart from some minor glitches, 2020 was reasonably profitable. The market may have been down in Q2, but it recovered in Q3 and Q4. Additionally, for Canadian investors, the real estate market is still one of the most attractive opportunities. Before you start investing in the real estate market in Canada, it’s critical to understand some of the recent trends. This information can help you make profitable investing decisions.

Is real estate investment in Canada still profitable in 2021

How 2021 is treating the real estate sector

In the world of investing, it’s a well-known fact that real estate inventory has been low ever since the pandemic hit. However, the government is making tremendous efforts to stabilize the real estate market by pushing funds and starting new projects. Also, many buyers are trying to move out of the big cities into single-family homes located in the suburbs. This makes it clear that investing in single-family homes is in trend and a good investment opportunity.

According to the experts, housing values are expected to increase by about 5% in 2021. If you purchased a home for $1 million today and decided to sell it soon, you can expect to receive a purchase offer of around $1,050,000. You gain a profit of $50,000 in a matter of months. This is just an example to demonstrate that investing in the Canadian real estate market is profitable.


For both investors and first-time homebuyers, condos have always been a good investment opportunity. They are relatively inexpensive and perfect for individuals or small families. They are also a great source of income if you choose to use them as a rental property. Unfortunately, since the pandemic hit, the condo market in large cities seems to be declining. Still, this is an excellent opportunity for investment because:

  • Sooner or later, people will start returning to the cities. Based on trends, this will push the prices up. You can invest now and reap the benefits later.
  • Currently, the interest rates are extremely low because the government is trying to provide affordable homes and grow the real estate market. If you don’t have the money to purchase a house, invest in a condo instead. You can seize this opportunity to build an asset.
  • According to the experts, immigrants are expected to begin returning to Canada from 2021 to 2023, which will fuel the need for housing.

Single-family homes

Another excellent option for investments is detached or semi-detached single-family homes. The minimum down payment for any home costing under $500,000 is 5%. If you make a down payment of less than 20%, you need to purchase mortgage loan insurance. While independent homes offer a high return on investment, they’re also in very high demand at the moment. After the pandemic hit, most people wanted the extra space that single-family homes offer. You can consider purchasing an independent house and renting it for some time. In the coming years, you can sell it and make a high profit. To give you an idea, if you bought a house for $1.6 million in 2020, it was a 27.2% increase from its estimated price in 2019.

Spare rooms

One of the least expensive investment options is renting a spare room or space. Of course, in light of the pandemic, this may not seem like a viable option, but it’s still worth a shot, especially if you just started investing in the real estate market in Canada.

Where should you be investing?

There are many options for investing in the Canadian real estate market. You can purchase vacation homes, commercial properties, REITs (Real estate investment trusts), and more. Each option will offer good returns as the years pass. Condos will almost always be in high demand and are typically affordable. Since the pandemic, the need for both detached and semi-detached single-family homes has surged. Finally, renting out a spare room or space does not cost much but offers excellent returns, which you can turn around and re-invest.

To invest in real estate in Canada, all you need is:

  • A 5%-20% down payment
  • A stable income to make mortgage payments
  • A good credit history

When the pandemic first hit, there was a definite lull in the real estate market worldwide, but the Canadian market is bouncing back. You can invest while the interest rates are low and build an asset that will offer excellent returns in the coming years.