Canadians share their best passive income strategies: The most interesting ones to note

Learn about some of the most interesting passive income strategies Canadians are using right now

IT’S NO NEWS that many Canadians are keying into promising passive income ideas in 2025. With rising healthcare expenses, housing costs, and inconsistent inflation, more folks are realizing that just relying on the income from a single job isn’t enough. Many are also looking for ways to make their money work for them.

For the benefit of people who want to know about these ideas and even explore them to better their own earning prospects, this post will walk through some of the most interesting passive income strategies Canadians are using right now.

Dividend and High-Yield Investing

If you’re looking for a way to earn a passive income that doesn’t demand constant work, the idea of dividend and high-yield investing really fits. You buy shares of a company (or units of an ETF) and, instead of only counting on the price of the shares going up, you get paid a portion of the company’s profits regularly. That payout is your “passive” income.

Canadian markets are especially rich in these opportunities because many big companies, especially in utilities, energy, and banking, have long histories of paying dividends. One of the companies to look towards is Fortis Inc. For example, Fortis Inc. has boosted its dividend every year for over 51 years, and the firm offers a yield around 4% to 6% in 2025 extended to 2029.

According to David Hutchens, President and CEO, Fortis Inc. “Our regulated growth strategy remains committed to the delivery of reliable and affordable service for our customers and annual dividend growth of 4-6% through 2029 for our shareholders.”

Investing in REITs

Investing in Real Estate Investment Trusts (REITs) helps you tap into real-estate income without having to buy a building, deal with tenants, or handle maintenance. In Canada, REITs give you access to commercial, residential, and industrial property income, and you get paid much like you’d get paid dividends from stocks.

Canadians like this idea because:

• It’s more accessible than buying real estate outright. You don’t need a huge down-payment or multiple contractors.
• It offers diversification. One REIT investment will afford the chance to own many properties across different locations.

But you need to pay attention to tax. In Canada, REIT distributions are taxed depending on what kind of income they’re passing through so holding them inside registered accounts (TFSA, RRSP) can help.

Real Money Online Gambling

Now, this is for Canadians who enjoy playing online casino games and other games of chance for real money. While many see them primarily as entertainment, you can also earn decent money off playing casino games online.

If you choose to play, the most important thing is to do it safely. Experts often advise that intending casino players in Canada go through review sites and guides to discover the best platforms that fits their needs. If slots or pokies is what a player prefers to play, checking reviews to learn about the most reliable Canada online pokies sites can be a great thing to do.

It’s also good to set money limits before you start and stick to it. Another thing to have in mind is responsible gambling. Yes, there’s a chance to win real money playing casino games, but participants can also lose money, so playing responsibly is the way to get the best out of the experience.

As Jerry Lewis once pointed out, “Gambling is part of the human condition. I love it. I have the best time gambling. I’ve been winning fortunes, and I’ve been losing them.”

Creating and Selling Digital Products

One of the most exciting passive-income paths for Canadians right now is creating digital products. Think e-books, online courses, printables, and templates that you make one time then sell again and again. Once it’s up and running, it brings in income without any active effort.

Here’s how to pull this off.

1. First, you pick something you’re good at or a niche you know a lot about. It might be a skill, hobby, or a special knowledge.
2. After that, you build a digital product. Write an e-book, record a short course, design some templates or printables. Because it’s digital, you don’t have to worry about shipping, inventory or physical storage.
3. Once your product is ready, upload it to a platform (for Canadians this could be something like Etsy, Gumroad, or your own website,).
4. Then you set up payment and delivery. People find it, buy it, download it, use it.

Renting Out Unused Assets

If you’ve got some space that’s just sitting there, this option might just be one of the simplest passive income ideas you can act on.

Let’s say you have a parking spot in a city like Toronto or Vancouver where parking space is scarce and expensive. Instead of letting it sit empty, you can list it for rent. Drivers who don’t own a dedicated spot will be happy to pay for it. Or maybe you have extra storage space like a garage, attic, basement or shed that you are currently not using, renting it out could earn you some money.

Just ensure that whatever space you’re renting out is presentable, accessible, and secure. Also, check the local rules. Some rental agreements or condo rules may restrict renting out parking or storage spots. And of course, any income from these rentals is taxable, so keep good records.

Final Thoughts

Now you know the smart and interesting ways Canadians are building passive income in 2025. But remember that all of them require some input and efforts from your part.

You’ll usually need to make some upfront investment, either through money or effort before you start reaping the rewards. Also, always double-check that you’re doing things according to the books: meeting tax rules and Canadian business regulations.