Are you on the fence about buying a home or continuing to rent in 2026? You’re not alone. With mortgage rates having stabilized after two rather turbulent years and a rental market that remains tight in the Estrie and Centre-du-Québec regions, this is a question worth giving serious thought to.

There’s no one-size-fits-all answer: whether you buy or rent depends on your financial situation, your life plans, and where you plan to settle. This article provides an overview of the current real estate landscape and offers concrete criteria to help you make a decision based on your individual circumstances.

The real estate landscape: What you need to know

Mortgage rates have stabilized but remain higher than before 2022

Since July 2026, the Bank of Canada has maintained its key interest rate at 2.25%, a level that has remained stable following several consecutive announcements. The prime rate is around 4.45%, which serves as the basis for variable-rate mortgages. As for fixed rates, the best offers for 5-year insured fixed-rate mortgages range from 3.9% to 4%, supported by bond yields that remain high.

Source: Ratehub.ca: Best Mortgage Rates

Source: Ratehub.ca: Best 5-Year Fixed Rates

Source: hypotheques.ca: 2026 Mortgage Market Guide

In practical terms, this means that buyers’ borrowing capacity has improved slightly compared to the peaks of 2023–2024, though it has not yet returned to the exceptional conditions seen before the pandemic. About 60% of mortgages in Canada are set to mature in 2026, prompting many homeowners to reassess their budgets and, for some renters, to wonder if now is the right time to become homeowners.

The rental market in the Estrie region remains under pressure

On the rental front, the situation remains challenging in the region. The vacancy rate for rental units in Sherbrooke is about 1%, well below the 3% equilibrium threshold set by CMHC. As a result, rents have risen significantly in recent years, and quality units are rented out very quickly. For many households, this scarcity makes the decision to buy or rent even more critical, as renting is no longer automatically the most economical or flexible option it once was.

With this in mind, Lachance offers both modern rental units and new homes for sale in the Estrie region and Drummondville to address both market realities.

Source: FROHME: Housing Situation Report for Sherbrooke

Source: LendCity Mortgages: Analysis of the Sherbrooke Rental Market

Buying in 2026: who should do it and why?

Buying a home remains a major life milestone and offers certain advantages for well-prepared buyers.

Discover the 5 benefits of buying

1. Building equity: Every mortgage payment adds to your net worth instead of lining a landlord’s pocket.
2. Ensure stable payments with a fixed rate, protecting you from rent hikes that affect the rental market.
3. Enjoy the freedom to customize: renovate, personalize, or build a custom home that meets your needs.
4. Take advantage of financial incentives such as the Home Buyers’ Plan (HBP), the First-Time Home Buyers’ Tax Credit (FTHBC), and the First-Time Home Buyers’ Tax Credit, in addition to municipal grants and the GST/QST rebate on a new home.
5. Prices are still affordable in the Estrie and Centre-du-Québec regions compared to major cities like Montreal.

What to consider before buying

• You’ll need to set aside an adequate down payment as well as closing costs (notary, inspection, transfer taxes).
• Your financial institution will conduct a mortgage simulation.
• This is a long-term commitment: buying is a wiser choice if you plan to stay in the area for at least a few years.
• You are now responsible for maintenance tasks, unlike when renting.

To determine your borrowing capacity and the various financing options, it’s advisable to speak with a mortgage expert before buying a property.

Renting in 2026: who is it for and why?

Renting a home remains a sensible option for many families, especially in a market where flexibility is just as important as cost.

The benefits of renting

• Flexibility to move: This is ideal if your professional or family situation is likely to change soon.
• No major maintenance costs: the landlord is responsible for repairs and general building maintenance.
• No down payment or closing costs, which frees up funds for other goals (savings, RESP, education, other projects).
• Less risk from unforeseen fluctuations in the real estate market and changes in mortgage interest rates.

Things to consider before renting

• In a market where rental housing is scarce, such as in the Estrie region, you often need to act quickly to find a suitable apartment.
• Rent prices tend to rise every year, especially when a new tenant moves in.
• Renting does not allow you to build long-term wealth.

At Lachance, our modern apartments for rent offer an attractive solution for those who want the comfort of renting without the hassles of homeownership, and we’re currently offering one month’s rent free on all new leases.

Buying vs. renting: a quick comparison

How should you choose based on your situation?

You’re a first-time homebuyer

If you have a down payment ready, a stable job, and plan to settle in the Estrie region or Drummondville for several years, 2026 is an excellent time to buy a home. This is largely thanks to assistance programs for first-time buyers and fixed interest rates. The available lots and residential developments from Lachance in Sherbrooke, Waterloo, Coaticook, Compton, Orford, East Angus, and Drummondville offer a variety of entry points to suit your budget.

You’re in the midst of a transition (school, new job, separation)

If your professional or personal situation is likely to change in the coming years, renting is often the most sensible choice: less financial commitment, greater freedom to move, and no worries about reselling a property in the short term.

You’re looking to expand or customize your living space

If the homes available on the market don’t meet your needs (in terms of space, style, or location), custom building allows you to design a home that truly reflects who you are—whether or not you already own a lot.

You want to explore a region before making a commitment

Renting for a while in the Estrie region before buying gives you the opportunity to get to know a neighborhood or municipality before making a long-term commitment—an approach that’s particularly useful for those new to the area.

Key points to remember

Neither buying nor renting is universally the “best” option: it all depends on your financial stability, your time horizon, and your personal priorities. The current environment—with stable mortgage rates around 4%, subsidies available for first-time homebuyers, and a tight rental market in the Estrie region—favors buyers looking to make a long-term commitment, while renting remains a viable option for those who prioritize flexibility.

Whether you’re looking to buy a new home, rent an apartment, or build a custom home, the Lachance team can help you evaluate your options in the Estrie region and Drummondville based on your individual circumstances.

Contact us to discuss your project, or schedule an appointment today.