Toronto Real Estate FAQ
Answers to the most common questions about buying, selling, and investing in Toronto real estate. Updated for 2026.
Buying a Home in Toronto
How much do I need for a down payment in Toronto?
For homes under $500,000, the minimum is 5%. For $500,000-$1.5M, it's 5% on the first $500K and 10% on the remainder. For homes over $1.5M, 20% is required. However, with Toronto's average home prices around $1.1M, most buyers need 10-20% down, plus 3-5% for closing costs.
What credit score do I need to buy a home in Toronto?
A minimum score of 680 is typically needed for prime mortgage rates. Scores between 600-680 may still qualify with alternative lenders at higher rates. Below 600 makes qualification difficult. Before house hunting, check your score and work to improve it if needed.
How long does it take to buy a house in Toronto?
The active search typically takes 2-6 months, depending on budget and requirements. Once you find a home, closing takes 30-90 days from accepted offer. Pre-approval, which takes 1-2 weeks, should be done before searching. Total timeline is usually 3-9 months.
What are closing costs in Toronto?
Budget 3-5% of purchase price. Major costs include: Land Transfer Tax (both Ontario and Toronto municipal, offset by first-time buyer rebates), legal fees ($1,500-$2,500), title insurance ($300-$500), home inspection ($400-$600), and moving costs. For a $1M home, expect $35,000-$50,000 in closing costs.
Should I buy a condo or house in Toronto?
It depends on your priorities. Condos offer lower entry cost, maintenance-free living, amenities, and often better locations. Houses provide more space, privacy, outdoor areas, and typically better appreciation. Condos average $680K while detached homes average $1.4M+. Consider your lifestyle, budget, and 5-10 year plans.
Do I need a real estate agent to buy a home?
While not legally required, working with a buyer's agent is strongly recommended. Your agent provides market expertise, handles negotiations, coordinates inspections and paperwork, and protects your interests. In most cases, the seller pays buyer agent commission, so representation is essentially free for buyers.
What is the First-Time Home Buyer Incentive?
Ontario offers land transfer tax rebates up to $4,000, plus Toronto adds up to $4,475 for Toronto properties. The federal First Home Savings Account (FHSA) allows $8,000/year in tax-deductible contributions, and the Home Buyers' Plan lets you withdraw up to $60,000 from RRSPs tax-free.
Selling Your Home in Toronto
How much does it cost to sell a house in Toronto?
Typical costs include: real estate commission (4-5% split between agents), legal fees ($1,500-$2,500), staging ($2,000-$5,000 if needed), and any repairs or updates. Total costs usually run 5-7% of sale price. On a $1M sale, expect $50,000-$70,000 in costs.
What's the best time of year to sell in Toronto?
Spring (March-May) is traditionally best with highest buyer activity. Fall (September-November) is the second-best season. Winter sees fewer buyers but also less competition. The best time is ultimately when your personal circumstances align with reasonable market conditions.
How should I price my home?
Price based on comparable recent sales, current competition, and property condition. Overpricing is the most common mistake—homes that sit lose momentum and often sell for less than properly priced homes. A good agent will provide a detailed Comparative Market Analysis to guide pricing.
Do I need to stage my home?
Staging significantly improves outcomes. Staged homes sell 73% faster and often for 1-5% more than non-staged homes. At minimum, declutter, depersonalize, clean thoroughly, and make minor repairs. Professional staging ($2,000-$5,000) typically pays for itself multiple times over.
How long will it take to sell my Toronto home?
Well-priced homes in desirable areas typically sell within 2-4 weeks in normal markets. Overpriced homes or those in challenging locations may take 2-3+ months. Market conditions, pricing strategy, and presentation all affect timeline.
Toronto Real Estate Market
What is the average home price in Toronto?
As of early 2026, GTA average home prices are around $1.07M. Detached homes average $1.3M, condos average $680K, and townhouses fall between. Prices vary significantly by neighbourhood—from $500K condos in Scarborough to $15M+ estates in Rosedale.
Is Toronto in a buyer's or seller's market?
As of early 2026, the market is balanced to slightly favouring buyers, with about 4.6 months of inventory. This represents a shift from the strong seller's markets of 2020-2022. Buyers have more negotiating power, but well-priced properties still sell relatively quickly.
Will Toronto home prices go down?
Forecasts suggest modest price declines of 3-5% through 2026, following adjustments in 2024-2026. However, long-term fundamentals remain strong: limited land, high immigration, strong economy. Toronto real estate has historically recovered from corrections and appreciated over time.
What are the best neighbourhoods to buy in Toronto?
It depends on your priorities. For families: Leaside, Lawrence Park, High Park. For young professionals: King West, Liberty Village, Queen West. For value: Scarborough, East York, The Junction. For investment: areas near transit expansion (Scarborough, Etobicoke waterfront). Research neighbourhoods based on your specific needs.
Are condos a good investment in Toronto?
Condos can be good investments, especially in well-located areas with transit access. They offer lower entry costs and easier management than houses. However, monthly fees affect cash flow, and appreciation has historically lagged detached homes. Consider your investment goals, timeline, and cash flow requirements.
Mortgages & Financing
What mortgage rate can I get in Toronto?
As of early 2026, competitive 5-year fixed rates range from 4.49-5.29%, and 5-year variable rates from 4.85-5.45%. Your actual rate depends on credit score, down payment size, and property type. A mortgage broker can help you find the best rate for your situation.
Fixed or variable rate mortgage—which is better?
Neither is universally better. Fixed rates offer payment predictability and protection from rate increases. Variable rates are often lower initially and have smaller penalties if you break early. Variable suits risk-tolerant buyers who may move within 5 years; fixed suits those prioritizing stability.
What is the mortgage stress test?
All buyers must qualify at the higher of their contract rate plus 2%, or 5.25%. So if you get a 4.5% rate, you must prove you can afford payments at 6.5%. This reduces purchasing power by roughly 20% but ensures buyers can handle rate increases.
How much can I afford to spend on a home?
General guidelines suggest total housing costs (mortgage, taxes, utilities) shouldn't exceed 32-35% of gross income. With today's prices and rates, a $150,000 household income might afford a $700,000-$800,000 home with 20% down. Pre-approval gives you an exact number based on your situation.
Still Have Questions?
Every real estate situation is unique. Get personalized answers and expert guidance for your specific circumstances.
Ask Your Question