Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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For most people, renting is still cheaper in the GTA heading into 2027. In my worked examples, owning a median Toronto condo or townhouse costs about $680 to $850 a month more than renting a similar home, counting only money you never get back. Buying wins if you stay seven years or more.
This guide is for GTA renters who are trying to decide whether 2027 is the year to buy, or whether renting a while longer is the smarter money move. You will get real rent figures with their sources, two worked ownership examples with every number shown, and a simple way to run the test on your own situation.
Is it cheaper to rent or buy in Toronto right now?
For most people, renting is cheaper month to month right now. In my two worked examples below, owning costs roughly $680 to $850 a month more than renting a similar home, once you count only the money you never get back: mortgage interest, property tax, condo fees or upkeep, insurance and the return your down payment could have earned.
That gap is smaller than it was a few years ago. Prices have dropped. TRREB MLS data via REALM shows the median Toronto C01 (downtown core) condo apartment sold for $600,000 from January to October 2026, down from $680,000 in the same period of 2024. Rents have also eased, so the two sides moved together. Buying still wins for some people, mainly those who will stay put for many years and build equity through principal payments.
What does rent cost in Toronto and the GTA in late 2026?
Rent numbers differ a lot depending on who measures them. Purpose-built rental buildings (older apartment towers owned by one landlord) often hold long-time tenants with lower rents. Condo rentals and new listings show what you would pay if you signed a lease today. Here are four named sources, each with its date.
| Source and date | Area | 1-bedroom | 2-bedroom |
|---|---|---|---|
| TRREB Rental Market Report, Q2 2026 (condo apartments leased on MLS) | City of Toronto | $2,316 | $3,154 |
| TRREB Rental Market Report, Q2 2026 | All TRREB areas | $2,273 (down 2.3% y/y) | $3,013 (down 1.7% y/y) |
| CMHC Rental Market Survey, October 2025 (purpose-built apartments) | City of Toronto | $1,763 | $2,055 |
| CMHC Rental Market Survey, October 2025 (rented condo apartments) | City of Toronto | $2,365 | $2,942 |
| liv.rent Ontario Rent Report, October 2026 (unfurnished listings) | Toronto | $1,969 (down 3.7% y/y) | Not published |
Source: TRREB Rental Market Report Q2 2026 (released 31 August 2026); CMHC Rental Market Survey data tables, Toronto, October 2025; liv.rent October 2026 Ontario Rent Report.
The national trend points the same way. The Rentals.ca and Urbanation report for September 2026, published 7 October 2026, put the average national asking rent at $2,034, down 4.2% from a year earlier. For a fair rent-or-buy test, compare a home you might buy with the rent for a similar unit leased recently. That is why I use the TRREB figures in the examples below.
What does it really cost to own a condo in Toronto each month?
Let’s take the median downtown condo: $600,000 in Toronto C01. Assume 20% down ($120,000), a $480,000 mortgage at 4.69% over 25 years, and a 3% yearly return you give up on the down payment. The 4.69% is the lowest big-bank five-year fixed rate Ratehub listed on 2 November 2026. Your rate will differ.
| Year-one cost of owning a $600,000 condo | Per year | Per month |
|---|---|---|
| Mortgage interest (first 12 payments) | $22,075 | $1,840 |
| Property tax estimate (2026 Toronto rate 0.767311% applied to price) | $4,604 | $384 |
| Condo fee (assumed $600 a month; check the real building) | $7,200 | $600 |
| Contents and liability insurance (assumed) | $360 | $30 |
| Return given up on $120,000 at 3% | $3,600 | $300 |
| Unrecoverable cost of owning | $37,839 | $3,153 |
| Rent: C01 condo 1-bedroom / 2-bedroom (TRREB Q2 2026) | $29,700 / $41,928 | $2,475 / $3,494 |
Source: TRREB MLS data via REALM, January–October 2026 (median price); TRREB Rental Market Report Q2 2026 (rents); City of Toronto 2026 tax rates; Ratehub, 2 November 2026. Fees, insurance and the 3% return are my assumptions.
The monthly payment is $2,707.61. Of that, about $868 a month in year one is principal, which is savings, not a cost. The real test is the $3,153 line. If the condo is a one-bedroom, renting at $2,475 is about $678 a month cheaper. If it is a two-bedroom, owning at $3,153 now beats renting at $3,494. Your actual tax bill is based on your MPAC assessment, not your price, so treat the tax line as a rough estimate.
Free tool — what can you actually afford?
Is it cheaper to rent or buy a townhouse in Toronto for a family?
Families usually need three bedrooms. The median freehold townhouse in Toronto E04 (Kennedy Park, Dorset Park, Wexford-Maryvale and nearby Scarborough communities) sold for $840,000 from January to October 2026, according to TRREB MLS data via REALM. Here I assume 10% down ($84,000), which needs default insurance.
| Year-one cost of owning an $840,000 townhouse | Per year | Per month |
|---|---|---|
| Mortgage interest on $779,436 (loan plus 3.10% CMHC premium) at 4.44%, 25 years | $33,941 | $2,828 |
| Property tax estimate (0.767311% of price) | $6,445 | $537 |
| Maintenance at 1% of price a year (my rule of thumb) | $8,400 | $700 |
| Home insurance (assumed) | $1,800 | $150 |
| Return given up on $84,000 at 3% | $2,520 | $210 |
| Unrecoverable cost of owning | $53,106 | $4,426 |
| Rent: City of Toronto 3-bedroom townhouse (TRREB Q2 2026) | $42,900 | $3,575 |
Source: TRREB MLS data via REALM, January–October 2026; TRREB Rental Market Report Q2 2026; CMHC premium schedule; Ratehub lowest insured five-year fixed, 2 November 2026. Maintenance, insurance and the 3% return are my assumptions.
The payment is $4,288.01 a month, and about $1,460 of it in year one is principal. Still, owning costs about $851 a month more than renting in unrecoverable money. For that to pay off, the home has to rise in value, or you have to stay long enough for rents to climb past your fixed costs.
How many years of rent does it take to equal a condo price in the GTA?
A quick way to compare cities is a price-to-rent ratio: the median condo price divided by a full year of two-bedroom rent. A lower number leans toward buying. A higher number leans toward renting. It is rough, because the median condo includes all sizes.
| Area | Median condo apartment price, Jan–Oct 2026 | Average 2-bed condo rent, Q2 2026 | Years of rent |
|---|---|---|---|
| Toronto C01 | $600,000 | $3,494 | 14.3 |
| Brampton | $415,000 | $2,408 | 14.4 |
| Mississauga | $485,000 | $2,713 | 14.9 |
| Oakville | $528,000 | $2,923 | 15.1 |
| Markham | $558,000 | $2,840 | 16.4 |
| Vaughan | $530,000 | $2,666 | 16.6 |
Source: TRREB MLS data via REALM, January–October 2026 (medians); TRREB Rental Market Report Q2 2026 (rents).
The spread is narrow. Across the GTA, a median condo costs about 14 to 17 years of two-bedroom rent. No city stands out as a clear bargain to buy, which matches the month-by-month math above.
How much cash do you need upfront to buy instead of rent?
Renting needs first and last month’s rent. Buying needs much more. On a $600,000 Toronto condo, the minimum down payment is $35,000 (5% of the first $500,000 plus 10% of the rest), though 20% avoids the insurance premium. Inside Toronto you also pay two land transfer taxes.
- Ontario land transfer tax on $600,000: $8,475.
- Toronto municipal land transfer tax on $600,000: $8,475.
- First-time buyers can get up to $4,000 back from Ontario and up to $4,475 from Toronto, which cuts the total from $16,950 to $8,475.
Add legal fees, a home inspection and moving. My guide to land transfer tax in Toronto shows more price points, and this breakdown of the income you need to buy in the GTA covers the qualifying side.
How will interest rates in 2027 change the rent vs buy math?
Rates moved the wrong way for buyers this fall. On 28 October 2026 the Bank of Canada raised its policy rate by 0.25 points to 2.50%, its first increase in more than three years. The big banks raised prime from 4.45% to 4.70% the next day. The Bank’s next decision is 9 December 2026, and Governor Macklem said another increase could be needed.
Forecasts vary. RBC expected three more hikes in total. The Bank of Canada expects inflation near 3.5% by the end of 2026, easing to about 2% by mid-2028. Fixed rates follow bond yields, which rose in September and October. Each 0.5-point jump in your rate adds roughly $2,400 a year in interest on a $480,000 loan, which pushes the balance further toward renting. If you are weighing rate types, my piece on fixed or variable in 2026 explains the trade-off.
Rent control does not protect every tenant. Ontario’s 2027 rent increase guideline is 1.9%, but units first occupied as homes after 15 November 2018 are exempt. If you rent in a newer condo, your landlord can raise the rent by any amount once a year with 90 days’ written notice. Build that risk into your plan.
Who should rent and who should buy in the GTA in 2027?
Renting usually makes more sense if you:
- May move for work or family within three to five years. Buying and selling costs can wipe out any equity you build.
- Rent an older, rent-controlled unit well below today’s market rent.
- Would drain your emergency fund to make the down payment.
Buying usually makes more sense if you:
- Plan to stay seven years or more and want fixed housing costs.
- Need more bedrooms than you can rent at a fair price.
- Will invest the savings if you rent. If you would spend the difference, ownership is the forced savings plan that works.
If you are leaning toward renting for now, read renting now and buying later so the timing does not trip you up later. For a more local version of this math, see rent versus buy in Etobicoke.
I do not think anyone should buy in 2027 just because prices fell. Buy because the numbers work for your life. With medians down and buyers cautious, you have more room to negotiate than in years. If your unrecoverable cost of owning is within about $300 a month of your rent and you plan to stay seven years or more, buying is worth a serious look. If the gap is $800 or more, keep renting, invest the difference and review every six months. This is my view, not a forecast.
What to do next
- Write down your real rent and what a similar unit would rent for today.
- Get a mortgage pre-approval so you work with your actual rate, not an average.
- Rebuild the cost table above with a real listing: actual condo fee, tax bill and insurance quote.
- Decide how long you will stay. Under five years tilts toward renting.
- Recheck after the Bank of Canada decision on 9 December 2026.
Need help with this? Talk to me.
I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].
Frequently asked questions
Is it better to rent or buy in Toronto in 2027?
For most people in Toronto, renting is cheaper month to month heading into 2027. In my worked examples, owning a median condo or townhouse costs about $680 to $850 a month more than renting, counting only interest, tax, fees, upkeep and lost investment return. Buying makes more sense if you will stay seven years or more and want fixed housing costs.
How much is rent in Toronto right now?
A one-bedroom condo in the City of Toronto leased for an average of $2,316 a month in Q2 2026, and a two-bedroom for $3,154, according to TRREB’s Rental Market Report released 31 August 2026. Older purpose-built apartments are cheaper: CMHC’s October 2025 survey put the Toronto averages at $1,763 for a one-bedroom and $2,055 for a two-bedroom.
Are Toronto rents going down?
Yes, Toronto rents were lower in 2026 than a year earlier. TRREB reported the average GTA one-bedroom condo rent at $2,273 in Q2 2026, down 2.3% year over year, and liv.rent’s October 2026 report put Toronto unfurnished one-bedrooms at $1,969, down 3.7%. TRREB expects conditions to keep favouring renters in the near term but says the market could tighten gradually.
Is renting a waste of money in Toronto?
No, renting in Toronto is not a waste of money if you compare it with the costs of owning you never get back. Mortgage interest, property tax, condo fees and maintenance are also sunk costs. On a $600,000 Toronto condo in 2026, those came to about $3,153 a month in year one in my example, more than the $2,475 average one-bedroom condo rent downtown.
How much do you need to make to buy instead of rent in Toronto?
To buy a $600,000 Toronto condo in 2026 with 20% down, you need about $120,000 in savings plus closing costs, and enough income to pass the federal mortgage stress test, which checks you could still pay at a higher rate. Lenders also count condo fees and property tax in your debt ratios. A pre-approval from a lender is the only way to know your exact limit.
Can my landlord raise my rent more than 1.9% in 2027?
Yes, if your unit was first occupied as a home after 15 November 2018. Ontario’s 2027 rent increase guideline is 1.9%, but newer units are exempt from it. In other units, the landlord needs Landlord and Tenant Board approval to go above the guideline. Either way, increases need 12 months between them and 90 days’ written notice.
Will house prices in the GTA go down in 2027?
Nobody can say for sure whether GTA prices will fall in 2027. TRREB MLS data via REALM shows medians fell year over year in most GTA municipalities from January to October 2026, and the Bank of Canada raised rates to 2.50% on 28 October 2026. Further hikes would weigh on prices, but forecasts differ, so plan around your own budget, not a prediction.
Is it cheaper to rent or buy in Mississauga or Brampton?
In both Mississauga and Brampton, a median condo apartment costs about 14 to 15 years of average two-bedroom condo rent, close to downtown Toronto’s ratio. Brampton’s median condo sold for $415,000 and Mississauga’s for $485,000 from January to October 2026 (TRREB MLS data via REALM), against average two-bedroom rents of $2,408 and $2,713 in Q2 2026.
How long do you need to stay in a home for buying to beat renting in Toronto?
Most Toronto buyers need to stay at least five to seven years for buying to beat renting, in my view. Land transfer tax on a $600,000 Toronto home is $16,950 before first-time buyer refunds, and selling later adds commission and legal fees. Those costs take years of principal payments and any price growth to recover.
Sources
- TRREB Rental Market Report, Q2 2026
- CMHC Rental Market Reports and Data Tables (Toronto, October 2025)
- liv.rent October 2026 Ontario Rent Report
- Advisor.ca: Average asking rents fall 4.2% in September (Rentals.ca and Urbanation)
- Ontario: Rent increase guideline
- Bank of Canada: Policy interest rate
- City of Toronto: Property tax rates and fees
- Ratehub: Best 5-year fixed mortgage rates
Related reading
- GTA Housing Market Forecast 2027: City-by-City Numbers
- Mississauga Housing Market 2027: Prices, Sales and What to Expect
- Brampton Housing Market 2027: Prices, Sales and What to Expect
- Markham and Richmond Hill Housing Market 2027
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Toronto. I work with buyers and sellers across Toronto and the GTA and have helped more than 100 families sell. Four-plus years of active GTA transactions and over $100 million in sales volume.
Reach me at [email protected] or 833-330-1925, or book a call.