Is it cheaper to rent or buy in Toronto?

Month to month, owning the $547,400 benchmark condo apartment costs about $3,714.59 in year one (mortgage, tax, maintenance, insurance) against $2,034 of rent. Over 10 years, with 3% price growth and the renter investing the difference at 5%, renting comes out ahead by $4,550.

How long do I need to stay in Toronto for buying to pay off?

In the default scenario renting stays ahead for the whole 10 years. Buying needs faster price growth or a longer stay (after 25 years the gap is $154,971 in favour of buying).

What is the average rent in Toronto?

$2,034 a month for a two-bedroom apartment in CMHC's October 2025 Rental Market Survey, which covers purpose-built rentals. Newer buildings and condos rented by owners are usually higher.

What does a $547,400 condo apartment cost to carry?

About $3,714.59 a month in year one: the mortgage on $492,660 plus the CMHC premium at 4.5%, $350 of property tax, 1% of value a year for maintenance and $100 of insurance.

Rent vs Buy in Toronto (2026)

Start with Toronto's numbers: a $547,400 benchmark condo apartment and $2,034 average two-bedroom rent. Change anything. The calculator plays out buying against renting and investing the difference, year by year, with Toronto's property tax, CMHC insurance, Ontario land transfer tax and selling costs. It tells you who ends up with more, and when.

Start from a city's typical price and rentToronto: MLS condo apartment benchmark (2026-08) and CMHC's average 2-bedroom apartment rent (2025-10). Change the price or the rent to match the place you would buy or rent.

Province

How long you'd stay

years

Buying

Price of the home

Down payment

Mortgage rate

Renting

Rent for a similar place, per month

Return on the money you invest instead

The down payment and any monthly savings

More options

Buying

Home price growth per year

Property tax per year (% of value)

Maintenance per year (% of value)

1% is the usual rule of thumb

Condo fees per month

Home insurance per month

Selling costs (commission, legal)

Mortgage rate after year 5

0 = same rate

Amortization

years

First-time buyer (land transfer rebate)?

Renting

Rent increases per year

0 = Ontario's 2026 guideline of 2.1%

Tenant insurance per month

Tax drag on the investments

0 if it sits in a TFSA or RRSP. 15 to 25% if non-registered

Renting and investing wins by$13,103After 10 years, assuming the renter invests the $125,846 the buyer pays up front and the $1,171 a month that owning costs more than renting and earns 6% a year. If that money is spent instead of invested, buying wins. Renting stays ahead for the whole 10 years at these numbers. It flips if you can rent the same place for over $2,110 a month, or if prices grow more than 3.2% a year instead of 3%.

Owner net worthRenter net worth

Where the lines cross is the year buying pulls ahead.

Month one	Owning	Renting
Cash out each month	$3,230.08	$2,059.00
Of that, gone for good (interest, tax, upkeep, fees, or rent)	$2,369.89	$2,059.00
Cash needed up front (20% down, land transfer tax, legal)	$125,846	invested instead
When you sell in year 10: commission and legal	− $36,756	—
Net worth after 10 years	$385,458	$398,561

Owner: home value after selling costs, less mortgage$385,458

Renter: invested down payment and monthly savings$398,561

If you stay longer or shorter, or prices grow differently

Stay	Prices 0%/yr	Prices 2%/yr	Prices 3%/yr	Prices 4%/yr	Prices 5%/yr
5 yrs	Rent +$103,967	Rent +$51,978	Rent +$24,375	Buy +$4,342	Buy +$34,207
10 yrs	Rent +$175,196	Rent +$72,196	Rent +$13,103	Buy +$51,616	Buy +$122,423
15 yrs	Rent +$260,939	Rent +$110,170	Rent +$16,274	Buy +$92,293	Buy +$217,555
20 yrs	Rent +$365,954	Rent +$173,886	Rent +$43,056	Buy +$117,321	Buy +$313,117
25 yrs	Rent +$496,792	Rent +$274,440	Rent +$106,608	Buy +$112,898	Buy +$397,759

Year by year

Year	Owner cost	Rent	Home value	Mortgage left	Owner net	Renter net
1	$38,761	$24,708	$563,410	$427,278	$107,962	$147,450
2	$39,051	$25,221	$580,312	$416,529	$134,768	$170,128
3	$39,351	$25,744	$597,722	$405,336	$162,500	$193,942
4	$39,659	$26,278	$615,653	$393,680	$191,190	$218,959
5	$39,976	$26,824	$634,123	$381,543	$220,874	$245,249
6	$40,303	$27,381	$653,147	$368,905	$251,585	$272,886
7	$40,640	$27,949	$672,741	$355,744	$283,360	$301,950
8	$40,987	$28,530	$692,923	$342,039	$316,238	$332,523
9	$41,344	$29,123	$713,711	$327,769	$350,257	$364,696
10	$41,712	$29,728	$735,122	$312,908	$385,458	$398,561

Show the math

Owner: mortgage on $437,600 at 4.09% over 25 years. Property tax 0.77% and maintenance 1% of the growing value, plus condo fees and insurance. Land transfer tax $14,946 and legal fees up front. 5% selling costs at the end. Renter: pays rent rising 2.1% a year, invests the owner's up-front cash and, each year, whatever owning would have cost more than renting, at 6% tax-free. Net worth compares home equity after selling costs with the renter's portfolio. Not modelled: capital gains tax on the renter's portfolio at the end (the home is tax-free as a principal residence), utilities differences, and the value of stability or flexibility.

What you need to know for 2026

Toronto's benchmark condo apartment price is $547,400 (2026-08), and $918,400 across all home types. CMHC's average rent for a two-bedroom apartment is $2,034 a month (October 2025 survey).
The price-to-rent ratio is 22.4: the benchmark home costs 22 years of rent. Above about 25, renting and investing tends to win over 5 to 10 years.
Toronto's residential property tax rate is 0.77% of assessed value (2026), about $4,200 a year on the benchmark condo apartment (assessments lag market value, so the effective rate on price is lower).
Buying the benchmark condo apartment with 10% down means a $15,260 CMHC premium and $7,415 of land transfer tax in Toronto (provincial plus municipal).
With 3% price growth and 5% investment returns, renting is ahead after 10 years by $4,550. At 1% growth renting wins by $117,858.

Rent vs buy in Toronto: three horizons

Benchmark condo apartment, 10% down, 4.5% mortgage, 3% price growth, 3% rent growth, 5% investment return, 5% selling costs.

Stay for	Buyer's net worth	Renter's net worth	Better off
5 years	$156,833	$189,449	Renting by $32,616
10 years	$330,153	$334,703	Renting by $4,550
25 years	$1,088,032	$933,061	Buying by $154,971

The answer depends on the assumptions. At 1% price growth over 10 years, renting wins by $117,858. Try your own rent, price and return. The main rent vs buy page explains how the model works and where it falls short.

City of Toronto composite benchmark. All-TRREB-areas composite is $925,900 (-4.46% y/y). Average selling price Aug 2026 $993,410 (TRREB Market Watch, Sept 3 2026). 2026 residential total = city 0.605295% + education 0.153000% + City Building Fund 0.009016%. Ontario: MPAC assessments frozen at fully phased-in January 1, 2016 current values for the 2026 tax year (mpac.ca/en/UnderstandingYourAssessment/AssessmentCycle), so assessed value is far below market value; apply this rate to 2016-CVA, not to today's price.

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Other cities

Vancouver Calgary Edmonton Ottawa Montreal Winnipeg Halifax Quebec City Hamilton Kitchener-Waterloo Victoria Saskatoon Regina London

If you decide to buy: what to line up first

Three programs change the down payment math and all need paperwork before closing.

Open an FHSA now, even with nothing in it, so room starts accruing.Opening an FHSA ↗
Plan the Home Buyers’ Plan withdrawal (form T1036) with your RRSP issuer at least a few weeks before closing.Home Buyers’ Plan ↗
Tell your lawyer you are a first-time buyer so the land transfer tax rebate is claimed at closing.Ontario land transfer tax refund for first-time buyers ↗
Get a mortgage pre-approval and a rate hold (usually 90 to 120 days) before you shop.FCAC: getting pre-approved ↗

Common questions

Frequently asked questions

Is it cheaper to rent or buy in Toronto?: Month to month, owning the $547,400 benchmark condo apartment costs about $3,714.59 in year one (mortgage, tax, maintenance, insurance) against $2,034 of rent. Over 10 years, with 3% price growth and the renter investing the difference at 5%, renting comes out ahead by $4,550.
How long do I need to stay in Toronto for buying to pay off?: In the default scenario renting stays ahead for the whole 10 years. Buying needs faster price growth or a longer stay (after 25 years the gap is $154,971 in favour of buying).
What is the average rent in Toronto?: $2,034 a month for a two-bedroom apartment in CMHC's October 2025 Rental Market Survey, which covers purpose-built rentals. Newer buildings and condos rented by owners are usually higher.
What does a $547,400 condo apartment cost to carry?: About $3,714.59 a month in year one: the mortgage on $492,660 plus the CMHC premium at 4.5%, $350 of property tax, 1% of value a year for maintenance and $100 of insurance.

What changed in 2025 and 2026

Sources

Every figure on this page comes from one of these primary sources. Data last verified September 7, 2026.

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Data verified for tax year 2026: September 7, 2026 Updated September 7, 2026 By Nishant Malik, founder of GlassLayer

Rent vs Buy in Toronto (2026)

Rent vs buy in Toronto: three horizons

Other cities

If you decide to buy: what to line up first

Frequently asked questions

What changed in 2025 and 2026

Sources

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