Rent, home and utilities: lower your biggest bills

Topic: Saving on Living Costs · Part 3 of 7 · 🟢 Basic

In one sentence

Housing is usually the biggest cost in a monthly budget, so choosing the right rental and lowering heating and electricity use can save more than almost anything else.

Words to know

Lease: the rental agreement between you and the landlord. It says the rent, how long you rent and what is included.
Utilities: services for your home, like electricity, heating (gas or electric), water and sometimes internet.
Hydro: in many parts of Canada, people say “hydro” for the electricity bill.
Tenant insurance: insurance for renters. It covers your belongings, and your liability if you accidentally damage the building or hurt someone. Many landlords ask for it.
Time-of-use pricing: electricity that costs less at some hours (like overnight) and more at busy hours. It is used in some provinces, like Ontario.

Step 1: Choose rent you can afford

Statistics Canada uses a simple standard: housing is “affordable” when it costs less than 30% of a household’s income before tax. For renters, that cost includes rent plus utilities. Many people in big cities pay more than this. It is a guide, not a rule. Your own budget matters most (see Splitting your paycheque).

Ways many people lower housing costs:

Roommates or shared housing: splitting a larger place often costs much less per person. Write down who pays what, including utilities.
A basement or secondary suite: often cheaper. Make sure it has proper exits and smoke alarms.
A slightly farther area: rent may be lower, but count the cost of getting to work and school (Step 2).

Step 2: Count the transit or car cost

A cheaper rental far from work can cost more in total if you need a car. Before you choose, add up:

Rent + utilities + transit pass, or
Rent + utilities + car payment, insurance, gas, parking and repairs.

Car insurance in Canada can be high, especially for new drivers. A home near good transit can save you from needing a car at all. We cover this in Getting around.

Step 3: Ask what is included

Two rentals with the same rent can cost very different amounts. Before you sign, ask:

Is heat included? Is electricity? Water? Hot water?
Is the heating electric or gas? Electric baseboard heat can be costly in winter.
Is internet, parking, laundry or storage included or extra?
Can I see a recent bill, or the average monthly cost, for this unit?
Does the landlord require tenant insurance?

Rules for rentals, like deposits and rent increases, are set by each province. Look up your province’s landlord and tenant office or website before you sign.

Deposits: some utility and internet companies ask new customers for a security deposit, especially if you have no credit history yet. Ask if they can waive it, for example with a letter of credit history from your bank or automatic payments. Ask when and how you get it back.

Step 4: Lower your heating and electricity bills

Heating and cooling make up almost two-thirds of the energy used in Canadian homes, says Natural Resources Canada. Small changes help:

Thermostat: Natural Resources Canada suggests about 20 °C when you are home and awake, and 17 °C when you are asleep or away. A programmable or smart thermostat can do this for you.
Draft-proofing: cold air comes in around windows and doors. Weatherstripping, door sweeps and window film are cheap and easy to install. Ask your landlord first if you rent.
Curtains: open them on sunny winter days and close them at night.
Time-of-use: where it exists, run the dishwasher, washer and dryer at off-peak hours. In Ontario, for example, time-of-use off-peak is 7 p.m. to 7 a.m. on weekdays, and all day on weekends and holidays. Most Ontario households can also switch to a tiered or ultra-low overnight plan. Check your local utility’s current hours and prices.
Hot water: wash clothes in cold water and take shorter showers.
Lights and devices: use LED bulbs, and turn off power bars for TVs and computers when not in use.

Step 5: Look for rebate and help programs

Governments and utility companies have programs that can lower costs:

Energy-saving rebates: many provinces and utilities give rebates for things like smart thermostats, insulation or heat pumps. Check your provincial government’s energy-efficiency program or your utility’s website.
Free home upgrades for some households: the federal Canada Greener Homes Affordability Program offers no-cost energy upgrades to low- to median-income households. For the first time, it includes renters. It is delivered with the provinces and territories, and is still expanding, so check if it is available in your province.
Bill help: many utilities have payment plans that spread winter costs over the year, and emergency help if you fall behind. Call them early if a bill is hard to pay.

Example

Here is a simple comparison with round numbers. Imagine two rentals.

Rental A, near transit: rent $1,800 + utilities $100 + transit pass $130 = $2,030 a month.
Rental B, farther away, needs a car: rent $1,500 + utilities $150 + car costs $700 (payment, insurance, gas, parking) = $2,350 a month.
Difference: $2,350 − $2,030 = $320 a month, or $320 × 12 = $3,840 a year.

Rental B has lower rent, but costs $3,840 more a year in this example. Use your real numbers. If you already need a car, the math changes.

Common mistakes

Comparing rent only, without utilities and getting-around costs.
Not asking whether heat and electricity are included.
Skipping tenant insurance. Losing everything in a fire or flood can be very expensive.
Signing a lease without reading the province’s tenant rules.

✅ My checklist

☐ I added rent, utilities and transit or car costs before choosing a home.
☐ I asked what is included and saw a recent utility bill.
☐ I have tenant insurance quotes from at least two companies.
☐ My thermostat is set lower when I am asleep or away.
☐ I checked my province’s energy rebate programs.

Next in this topic → Getting around: transit, cars and gas

Back to the topic → Saving on Living Costs

There are no affiliate or referral links in this post. This is general information, not financial, tax or legal advice; everyone’s situation is different. Figures were checked in October 2026 and can change.

Sources: Statistics Canada: Shelter-cost-to-income ratio and the affordability standard · Natural Resources Canada: Smart thermostats · Government of Ontario: Electricity price plans · Natural Resources Canada: Canada Greener Homes Affordability Program · Toronto Community Housing: Tenant insurance explained