There are few things more exciting than getting a new gadget. Low-end smartphones are powerful enough to manage most tasks and have affordable prices. However, if you want a best-of-the-best flagship phone like the iPhone 15 you will have to be prepared to shell out over $1,000. 

Most carriers let you reduce the upfront cost through a few different kinds of plans, including:

• Financing a phone
• Scoring a subsidized phone
• Tab plans
• Leasing a phone

Want to understand the key differences between these money-saving options? Of course you do! In the process, we'll also recommend some excellent deals on affordable smartphones.

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Want to score a phone for $0 down? Check out the most popular phones that require no money at signing.

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How to finance a new phone

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Financing for 100% of the price of a new phone is currently available at Telus, Rogers, Bell, Freedom Mobile, and most other carriers in Canada.

When you sign up to any postpaid mobile plan with a carrier in Canada then you are on a month-to-month contract. That means you can move to another plan (or even another company) at any time. When you also buy a phone at less than the full retail value, then you must sign a two-year contract and make payments on the balance. Knowing how much you will pay on each bill with financing is as simple as taking the balance of the phone and dividing by 24 months.

If you pay $0 upfront, then the balance is whatever the phone costs. Expensive smartphones mean high monthly bills. So there's some ways to reduce the phone balance:

• The carrier may apply a discount when you sign up for two-year financing
• Trade-in value from your old phone further discounts the price
• Make an upfront payment to reduce monthly bills
• Add a leasing option where you pay a larger sum at the end or just hand the phone back after two years

Interested in financing a new iPhone? Maybe you've got your eye on the brand-new iPhone 15. Maybe you realized now's the best time to save big on an older model. Whatever you're interested in, there's likely a Canadian carrier offering financing for the iPhone of your dreams. Find the best of them below.

Financing, leasing, tabs...what's the difference?

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While smartphone financing is supposed to make buying a new device easier, it adds yet another way to buy your phone in an already diverse market. Some companies ask you to subscribe to a subsidized pricing plan system, others use tabs, and some will require financing. Leasing works separately to help reduce the initial cost and is found in combination with the other options.

What is smartphone financing?

Very simply, the cost of the phone is divided over 24 equal payments with 0% interest. You pay it off over two years of monthly bills. The simplest example would be a $1,200 smartphone. Split over 24 months, you would have $50 added to each monthly bill to pay off the financing. 

• Promotions may include upfront discounts off the total price
• Monthly bills immediately drop to just the cost of your plan after two years
• Upgrade or downgrade your plan to any other qualifying plan
• Can be combined with leasing to further reduce monthly costs
• Still a very expensive option for premium smartphones
• Plans start around at $15/month before the financing is added (Bell, Rogers, Telus)
• Premium phones ($800 and up) may require a large upfront payment (Fido, Virgin Mobile)

Below, you can find a list of the most popular smartphones available for financing.

What are subsidized plans?

This was once the most common way to offset the price of a new phone in Canada, but in 2023 very few carriers still sell phones on subsidized plans. Smartphone plans with fixed talk time and data are offered, but how much your plan costs will depend on how much you save on the upfront cost of a new phone. 

For example, if you bring your own phone you might get unlimited talk and text plus 10GB of data for $45/month. If you get a cheap smartphone for $0 down then that same plan costs $55/month. A premium phone like the iPhone 15 might cost $0 upfront but that same 10GB plan is now $85/month.

Some carriers including Cityfone offer free phones when you sign a two-year contract with no additional monthly fee.

• Some of the biggest discounts can be found this way; sometimes up to $600 off
• Simple, predictable calculations to know what you'll pay each month
• Paying a bit upfront can sometimes result in lower overall cost
• You keep paying that inflated monthly price even after two years
• The carrier can raise your monthly rate plan while you're on contract
• You can't downgrade or cancel your plan before two years without additional fees

What are tab plans?

Tabs sit between financing and subsidized plans. Devices are often discounted like subsidized plans, but your plan and phone payments are separate. Buying an iPhone upfront might cost $1,200, but a tab plan might give it to you for 24 monthly payments of $40 ($960 total). You're still locked in for two years. 

Leaving early means that you must pay off the remainder of the full retail price on the phone, and the discounted price you were sold at the beginning is no longer valid. So, if you change plans after only one year then you have to pay off half of the full $1,200 retail price of that iPhone plus any cancellation fees.

• Big discounts off the total price of the phone versus buying it outright
• Monthly bill drops to just the price of your plan after the phone is paid off
• You pay the remainder of the full device price if you leave your contract early (not the discounted price)
• Carrier can raise monthly rate plan while you're on contract
• Downgrading your plan before two years usually isn't available without breaking the contract

The best tab plans are available from Koodo, who offers plenty of high-quality smartphones at discounted rates.

How can leasing help?

Many carriers offer a form of leasing to help reduce the upfront and monthly cost of premium smartphones. Sign a two-year contract and the carrier will reduce the cost of your phone, sometimes by several hundred dollars. At the end of your contract, you either hand back the phone or pay the balance and keep it. 

Mobile carriers have different names for leasing, but they all work the same.

• Telus offers Bring-It-Back
• Rogers calls it Upfront Edge
• Bell has a Device Return Option

Leasing is only available with financing plans. For example, a new iPhone may cost $1,200 to buy outright. With leasing you save $300 upfront and only pay $37.50/month. After two years you can pay $300 and keep the device or hand it back and buy a new phone.

If your phone has any damage (like a cracked screen), you will have to pay a penalty upon return. This means you should be prepared to pay off the full price at the end of your contract.

• Best option if you upgrade your phone every two years
• Trade-in value after two years may be higher than paying it off, saving you money on a new phone
• You lose your phone after two years unless you pay off the balance
• Your return option may be rejected if there's damage
• Prepare for that final payment, it may catch you by surprise
• Ending the contract early means you have to pay that full sum immediately

Want to see some of the best phones on the market that can be leased? We've got the list below.

Should I buy my phone outright?

We usually recommend Bring Your Own Phone (BYOP) plans because they are often cheaper than plans that include a new phone (by at least $10/month). Buying a smartphone outright gives you more options. You can buy from the carrier, a manufacturer like Google and Apple, or a third-party storefront online or like those shops you see in the mall. Some stores like Best Buy can't sell the most popular phones outright, but will offer you unique deals when signing a two-year contract with supported carriers. If you sell your current phone, you can also put that money towards a new outright purchase. Just make sure you factory reset your device before you sell.

Premium smartphone retail prices have risen to well over a thousand dollars. That is out of reach for many Canadians. Frequent promotions by carriers may discount your favourite phone by hundreds of dollars if you sign a contract. They may even include a cool bonus like free wireless earbuds.

Not all brands are available at your local carrier store and buying a new phone outright opens many more options. Alternative brands like OnePlus and HTC sell directly from their website or through small independent shops. Niche smartphones aimed at Gamers including the Razer Phone 2 and Asus ROG Phone II can only be bought by paying the full price upfront in Canada.

• Buying outright from the manufacturer is often cheaper than buying outright from a carrier
• Wider selection of brands not sold by carriers (e.g. Razer, OnePlus, HTC, Asus)
• BYOP discounts and monthly contracts mean you're free to change carriers and chase the best deal at any time
• Large upfront cost can be difficult to afford
• Some phones are hard to buy outright in Canada

There are plenty of excellent smartphones that can be purchased outright. See the most popular below.

Which mobile carriers offer financing?

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Now that you know a bit more about your options for buying a new mobile device, here's what options your carrier offers when it's time to get a new cell phone.

Change your cell phone company for free

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It's okay to be nervous about the unexpected costs of changing your cell phone provider. However, if you've already paid off the full value of your current phone then you're free to change carriers.

You can unlock your current smartphone and keep your existing phone number when changing carriers. Most cell phone companies may also offer a bundling discount or data-sharing plan when you partner a smartphone with a data stick, hub or LTE-enabled tablet. Check out data-only plans to see what smart-devices you might be able to use with your plan.