Buying the latest smartphone can be expensive, especially with flagship devices like the iPhone 16 Pro Max or Samsung Galaxy S25 Ultra costing well over $1,500 CAD. That’s why many Canadians choose to finance or lease their phones through wireless carriers.

But what’s the difference between financing and leasing? And which one is right for you? Let’s break it down so you can make the best decision for your needs and budget.

What is Device Financing?

Device financing allows you to spread out the cost of a new phone over time instead of paying upfront. Most Canadian carriers including Flanker brands offer financing plans with 0% interest.

How It Works

• You purchase the device through the carrier and own it outright once the 24-month payment term is complete.
• The total cost of the phone is divided into equal monthly payments over 24 months.
• Once paid off, your bill drops to just the plan cost - no more device payments.

Key Benefits of Financing

• You own the phone: No need to return it after 24 months.
• No additional fees: No residual payment required at the end of the term.
• Same discounts & perks: Carrier promotions (trade-ins, gift cards, discounts) apply just like they do for leasing.

Things to Consider

• Higher monthly cost: Monthly Payments would be higher than Leasing as you would own the device
• No early upgrade flexibility: You must complete payments of 24 months before upgrading to a new device

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What is Device Leasing?

Device leasing lets you pay a lower monthly cost for a new phone by renting it instead of owning it. At the end of the term, you can return the device or pay its residual value to keep it.

Leasing is available through national carriers like Bell, Rogers, and TELUS but not on their flanker brands, such as Fido, Koodo, or Virgin Plus. Freedom Mobile and some regional carriers also offer leasing.

How It Works

• You rent the phone for 24 months, paying a lower monthly amount than financing.
• At the end of the lease, you must return the device in good condition, or pay its residual value to keep it.

Key Benefits of Leasing:

• Lower monthly payments compared to financing
• Upgrade flexibility: Some leasing programs allow early upgrades before 24 months
• Option to buy later: You can choose to pay the residual value and keep the phone at the end
• Same discounts & perks: Carrier promotions (trade-ins, gift cards, discounts) apply just like they do for financing

Things to Consider:

• You don’t own the phone: You must return it unless you pay the residual value
• Potential extra costs: If the phone is damaged or not returned in good condition, additional fees may apply.

Financing vs. Leasing: A Quick Comparison

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The Bottom Line

The choice between financing and leasing comes down to what matters most to you:

• Want to own your phone and avoid extra fees? → Financing is the better option.
• Prefer lower monthly payments and early upgrades? → Leasing might be worth considering.
• Not sure? → Look at the total cost, including residual value, to see which option makes the most sense.

At Fliq, we make it easy to compare financing and leasing options from all top carriers in one place, so you can see the full cost and choose what works best for you.

Ready to find the best deal? Explore and compare now with Fliq!

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