Buying a House in Toronto

The Toronto market in official numbers

Statistics Canada's new housing price index for Toronto is 105.0 (Sep 2026), down 4.9% vs 12 months earlier. It tracks new homes with the same specifications over time, not resale prices.

Housing starts over the latest 12 months: 23,355 units (Sep 2026). Purpose-built 2-bedroom rent: $2,045 (October 2025 survey); vacancy: 3.00% (October 2025 survey).

Federal rules that apply everywhere

• You need at least 5% of the first $500,000, plus 10% of any part of the price above $500,000. At $1,500,000 or more, the minimum is 20%.
• The qualifying rate is the higher of your contract rate plus 2 percentage points or 5.25%.
• Default insurance is required with less than 20% down. In Ontario, provincial sales tax on the premium is paid in cash at closing.

Steps to buy

• Check your budget and credit, and estimate what you can afford at the stress-test rate.
• Save the down payment and closing costs; an FHSA and the Home Buyers' Plan can help first-time buyers.
• Get pre-approved so you know your maximum mortgage and can hold a rate.
• Make an offer with conditions you need, such as financing and inspection.
• Finalize the mortgage, arrange property insurance and complete closing with your lawyer or notary.

Toronto market conditions

New-home prices in Toronto, measured by Statistics Canada's new housing price index, are down 4.9% vs 12 months earlier. Housing starts over the latest 12 months total 23,355 units (Sep 2026), down 9.8% vs prior 12 months.

For renters weighing a purchase, the average purpose-built two-bedroom rent is $2,045 (October 2025 survey) and the rental vacancy rate is 3.00% (October 2025 survey).

Two land transfer taxes

Toronto buyers pay Ontario's land transfer tax and the City of Toronto's municipal land transfer tax, with refunds available to eligible first-time buyers.

Today's borrowing costs

On new uninsured mortgages, Canadians paid an average of 4.58% (Aug 2026) for fixed terms of five years or more and 3.90% (Aug 2026) for variable rates, according to the Bank of Canada. Insured borrowers paid 4.12% and 3.74%.

The Bank of Canada's policy rate is 2.50% (Nov 11, 2026) and the banks' prime rate is 4.70% (Nov 11, 2026). Variable rates move with prime; fixed rates follow Government of Canada bond yields, with the 5-year yield at 3.46% (Nov 10, 2026).