I wish I would have seen this thread earlier as I would have commented!
I love flowertown, shipping is fast and reasonable. I purchased my midwest cages from them and my roommate buys her rats lab blocks from there.
I'm not sure where you're located in Southern Ontario but I found great hay at a pets supply store called Ren's Pet Depot (they do not sell live pets). There are locations in Guelph, Burlington, Waterdown, Kitchener, Waterloo, Oakville and Woodbridge. You can also order online and they have free shipping on orders over $60 I believe.
You mention you can't store big bales but you can get 9lb boxes which are not big at all as it's compressed! It's only $29.99 for the 9 lbs of either orchard grass or timothy hay. It's a much better deal than the 40oz bags and the boxes are about the size of 1 and half 40oz bags. In the long run it would save you a lot!