Home care agency or private caregiver? The real pros, cons and costs

A private caregiver usually costs less per hour. An agency costs more because the rate includes screening, insurance, payroll, backup caregivers and supervision. When you hire privately, those jobs usually become yours, and in Ontario you may legally become an employer.

Private hire can work well for a few hours a week with someone you know and trust. For regular, personal or complex care, most families find an agency safer and simpler.

Illustrative scenario — the following names and situation are fictional, not a client testimonial.

Sarah found Lourdes through a friend of a friend. She was kind, patient, and her mother adored her. Four mornings a week, $22 an hour, paid in cash. For eight months, it was perfect.

Then Lourdes hurt her back helping Sarah's mother out of the tub. She couldn't work for six weeks. Sarah scrambled: she took unpaid leave, her brother flew in, and a neighbour covered two afternoons. Lourdes asked who would cover her lost wages. Sarah didn't have an answer.

That's when Sarah started asking the questions she wishes she'd asked on day one. Was she Lourdes's employer? Was Lourdes insured? What did she owe the CRA? And who was supposed to step in when the one person holding everything together couldn't come?

None of this means private caregivers are a bad choice. Many are wonderful. It means the decision is bigger than the hourly rate. Here's how to make it with your eyes open.

For a planning example, compare an agency quote of $35–$45 an hour with an independent caregiver quote in the $20s. These are illustrative figures, not a province-wide price survey. Corelia care starts from $35 an hour, with a minimum three-hour visit; your exact quote depends on the care plan and schedule.

For 20 hours of care a week, that gap can look like several hundred dollars a week. But the comparison isn't like for like, because an agency rate and a private rate pay for different things.

This is the part most families don't learn until something goes wrong.

The Canada Revenue Agency says you may be an employer if you hire a caregiver, set their regular working hours, and assign and supervise what they do. That describes most private caregiving arrangements. Employers generally need a payroll account, must deduct and remit CPP, EI and income tax, and issue a T4 each year. Calling the caregiver a contractor doesn't settle it: the working relationship does. If you're unsure, you or the caregiver can ask the CRA for a CPP/EI ruling.

In Ontario, WSIB policy covers a domestic worker employed by one household for more than 24 hours a week, and the household employer must register. If your caregiver works 30 hours a week and is injured lifting your father, that matters a great deal. In Alberta, check the Workers' Compensation Board's rules for household employers.

Ontario's general minimum wage rose to $17.95 an hour on October 1, 2026, and employment standards cover things like overtime, vacation pay, public holidays and rest periods. Live-in arrangements have their own rules about hours and room and board. A private agreement can't sign these away.

Checking references, confirming training, getting a vulnerable sector police check and verifying identity all fall to you. In Ontario, you can also check whether a PSW is on the public register kept by the Health and Supportive Care Providers Oversight Authority, though registration is still largely voluntary.

Caregivers get sick, take holidays, have family emergencies and sometimes quit. With one private caregiver, every absence becomes your emergency. That's usually the moment families discover the real cost of a lower hourly rate.

Who notices if your mother is losing weight, the bruises are new, or the caregiver is struggling with lifts that now need two people? With an agency, a care coordinator reviews the plan. Privately, it's you, often from a distance.

To be fair, private hire is the right choice for some families. It tends to work best when:

You need a few hours a week of companionship or light help, not personal or complex care.
You already know and trust the person, such as a long-time neighbour.
You live nearby and can cover absences yourself.
You're comfortable handling payroll and paperwork, and you've checked your obligations.
If you go this way, get a written agreement covering duties, hours, pay, notice and what happens when the caregiver can't come. Ask an accountant about payroll, and check WSIB or WCB rules.

Your parent needs help with bathing, toileting, transfers or medications.
Care is more than a few hours a week, or includes nights and weekends.
Your parent has dementia, a fall risk or health conditions that change.
You work full time or live far away and can't be the backup.
You want someone accountable for quality, with a person to call when something isn't right.
Some families combine the two: a trusted private companion for a couple of afternoons, and an agency for personal care, nights and cover. That can work well, as long as everyone knows who does what.

The cheapest hour of care is the one that shows up. The most expensive is the one that doesn't, when there's no one to send instead.

Before you hire anyone
Who has done a vulnerable sector police check, and when?
What training does the caregiver have, and is it relevant to my parent's needs?
Who is the employer, and who handles payroll and taxes?
Is there liability insurance and WSIB or WCB coverage?
What happens when the caregiver is sick, on vacation or quits?
Who oversees the care plan, and how will the family get updates?
What's the notice period, and is there a long-term contract?

"I don't want to become an employer to care for my mom."
We're the employer, not you
Corelia caregivers are bonded, WSIB/WCB insured and cleared through vulnerable sector police checks. Scheduling and payroll are handled for you.
"What if the caregiver is sick?"
Backup and consistency
We arrange cover so a sick day doesn't become your emergency, and if a caregiver isn't the right fit, we change them.
"I need someone to keep an eye on the whole picture."
Clinical oversight
Care plans are overseen by our Clinical Director, a Registered Nurse, and reviewed as your parent's needs change.
"We need help with bathing and dressing."
Personal care assistance
Trained caregivers for bathing, toileting, dressing and safe transfers.
"Dad mainly needs company and someone to drive him."
Companion care
Conversation, errands, appointments and outings, a few hours or a few days a week.
No long-term contracts, and most families start with two or three visits a week. We serve Mississauga, Brampton, Caledon, Oakville, Burlington, Milton, Halton Hills, Guelph, North Bay, Edmonton and Red Deer.

Get a care plan and an exact price from a free, no-obligation assessment, then weigh it against a private arrangement. Not ready to talk? Try the AI Care Matchmaker or the two-minute care needs quiz.

This article provides general information, not legal, tax or employment advice. Rules differ by province and by the working relationship. Price comparisons are planning examples, not guaranteed quotes. Check your circumstances with the CRA, WSIB or WCB Alberta, an accountant or an employment lawyer.