Five things people say about buying in Etobicoke that are wrong or badly incomplete: 1) “Etobicoke isn’t really Toronto” — it is, fully, with the same land transfer taxes and the same city services; 2) “prices always go up” — GTA condo apartment values are down about 9.4% year over year; 3) “you need 20% down” — you do not for an owner-occupied home under $1 million, though you do need it above $1 million and for rentals; 4) “condos are a bad investment now” — some are, some are not, and the difference is whether the building has an advantage a new one cannot copy; 5) “wait for the bottom” — nobody identifies the bottom in advance, and active listings are down about 13.5% year over year, so waiting costs you selection as well as time.
The market figures in this article reflect data available when it was written. TRREB’s July 2026 report is now the most current: the GTA average selling price was $1,003,956, down 4.5% year over year, new listings fell 17.8% to 14,484, and condo apartments averaged $672,807 in the 416 and $560,923 in the 905. TRREB describes the market as tightening and setting the stage for price stability. For the current picture and what it means for a decision to sell or hold, see Should I sell my Toronto condo now or wait?
Some of these I hear weekly. A few of them are half-true, which is what makes them stick — and what makes them expensive, because a half-true belief feels like knowledge.
I am going to correct them with the actual numbers where numbers exist, and tell you honestly where the answer is “it depends” rather than pretending otherwise.
The market context for all of it: GTA condo apartment values are down roughly 9.4% year over year to an average near $630,688. The overall GTA average is around $1,058,658, down about 3.9%. Inventory is near four months, and active listings are down about 13.5% year over year. Softer prices, fewer choices.
1Myth: “Etobicoke isn’t really Toronto”
This one is repeated by people who have not looked at a map since 1997, and it has a real financial consequence.
The correction
Etobicoke amalgamated into the City of Toronto in 1998. It is fully part of the city: TTC service, Toronto police and fire, Toronto by-laws, TDSB and TCDSB schools, Toronto zoning, Toronto building permits.
Why it costs money to believe otherwise
Buyers regularly assume Etobicoke escapes the Toronto Municipal Land Transfer Tax. It does not. You pay both the provincial Ontario Land Transfer Tax and the municipal Toronto tax, exactly as you would downtown. That is a substantial sum and buyers who budgeted for only the provincial tax find out at closing — which is the worst possible moment.
The same applies to the Toronto Vacant Home Tax, which covers Etobicoke properties. Owners with a property sitting empty — including during a renovation or a probate — must file a declaration annually. Failing to declare can result in the property being deemed vacant and taxed. This catches estate sales and renovation projects constantly.
Where the confusion has a grain of truth
Etobicoke feels different — lower density, more green space, wider lots, more cars. That is a real character difference. It is not a jurisdictional one, and confusing the two is expensive.
Why it makes the list: Because believing it means under-budgeting your closing costs by a significant amount and potentially missing a Vacant Home Tax declaration.
2Myth: “Toronto real estate always goes up”
This is the most damaging belief on the list because it feels like it has been proven by decades of experience.
The correction
GTA condo apartment values are down roughly 9.4% year over year to an average near $630,688. The overall GTA average is down about 3.9% to around $1,058,658. These are not forecasts. They are what happened.
The consequence is not abstract. A meaningful number of people who bought pre-construction in 2020 and 2021 are now closing on units that appraise below their purchase price — and because lenders fund against appraised value rather than the price you agreed to pay, they must find the shortfall in cash at closing.
Why condos fell further
Structural reasons: a large wave of investor-owned completions arriving at once, higher carrying costs, and rents that no longer cover them. Freehold has held up better because supply is genuinely fixed. This is not a temporary sentiment dip; it is a supply-and-carrying-cost problem working itself out.
What is actually true
Over long holds — fifteen to thirty years — Toronto real estate has performed well, and owning has generally beaten renting for people who stayed put. That is a real and defensible statement.
“Always goes up” is not the same claim, and the difference matters enormously if your horizon is three years rather than twenty.
Why it makes the list: Because “always goes up” is what makes people over-leverage on short horizons — and the current market is where that belief gets tested.
3Myth: “You need 20% down to buy in Toronto”
This one is genuinely half-true, which is why it persists — and the half that is false shuts capable buyers out of the market unnecessarily.
The actual rules
For an owner-occupied home under $1 million, the minimum down payment is 5% on the first $500,000 and 10% on the portion between $500,000 and $1 million. On a $700,000 condo that is $25,000 plus $20,000 — $45,000, not $140,000.
Below 20% down you require mortgage default insurance (CMHC, Sagen or Canada Guaranty), whose premium is added to your mortgage. That is a real cost and it should be modelled — but it is not a prohibition.
Where 20% genuinely is required
Purchase price of $1 million or more. No exceptions, no insurance available. This is a hard line and it is why the sub-$1 million segment behaves so differently from the segment just above it.
Investment and rental properties. Minimum 20% down.
Why this matters in Etobicoke specifically
With the GTA condo average near $630,688, a very large share of Etobicoke condo inventory sits well below the $1 million threshold. That means the lower down payment rules apply to most of what a first-time buyer would actually look at here.
I have had buyers spend two extra years saving toward a 20% figure they never needed, while the units they were saving for moved out of reach. Talk to a mortgage professional before you decide what you can afford — not after.
Why it makes the list: Because it keeps qualified buyers renting for years toward a threshold that does not apply to them.
4Myth: “Condos are a bad investment right now”
This one is understandable given the numbers, but it is too blunt to be useful — and acting on it as a blanket rule causes people to miss the best entry point in years.
Where the pessimism is justified
A 500-square-foot investor unit in a 600-unit tower, competing directly against dozens of near-identical units in its own building, with no differentiating feature, in an area with heavy new supply — that is a genuinely difficult asset right now, and it is a large share of what was built in the last decade.
Where it is wrong
Condos with an advantage a new building cannot reproduce behave differently:
Protected views. A Humber Bay Shores unit facing south over Humber Bay Park and the lake has a view guaranteed by public parkland and open water. Nobody can build that away.
Square footage nobody builds anymore. A 1,000-square-foot two-bedroom in Mimico is not interchangeable with a new 700-square-foot two-bedroom. That supply is fixed and shrinking while demand for a genuine second room has grown.
Existing rapid transit. Buildings at Kipling and Islington stations have something that cannot be replicated by a project elsewhere.
The honest framing
In a rising market, a mediocre building gets carried along. In this one it does not — which means selection matters far more than it did, and the reward for choosing well is larger. “Condos are bad” is not analysis; it is a way of avoiding the work of telling them apart.
Why it makes the list: Because the statement is true of a lot of condos and false of the ones actually worth buying — and treating it as a rule means missing both.
5Myth: “Wait for the bottom before you buy”
The most reasonable-sounding advice on this list and the hardest to act on, because it requires information nobody has.
The core problem
Market bottoms are only identifiable in hindsight. By the time it is clear the bottom has passed, prices have already moved and competition has already returned. Nobody rings a bell. The people who bought at the actual bottom of previous corrections did not know it at the time — they bought because they were ready.
What waiting actually costs right now
Selection. Active listings are down about 13.5% year over year. There is less on the market than there was, and the good inventory is thin. Waiting does not just cost you time — it costs you choice, and in a market with limited supply that is the scarcer resource.
Negotiating position. Right now buyers have real leverage — conditions are accepted, prices are negotiated, and closing dates are flexible. That leverage disappears fast when rates fall and sidelined buyers return simultaneously. A slightly lower price with five competing offers is worse than today’s price with none.
The honest counter-argument
Waiting is genuinely right if you are not financially ready, if your job is unstable, if you have not saved a proper closing-cost buffer beyond the down payment, or if your horizon is under three years. Those are good reasons and I tell people to wait for them regularly.
“I think prices might drop a bit more” is not one of them, because you cannot act on it with any precision.
Why it makes the list: Because the question is never “is this the bottom.” It is “am I financially ready and do I intend to stay put.” Those you can actually answer.
Side-by-side comparison
| The myth | The reality |
|---|---|
| “Etobicoke isn’t really Toronto” | Amalgamated in 1998. Toronto Municipal Land Transfer Tax and Vacant Home Tax both apply. |
| “Prices always go up” | GTA condo apartments down ~9.4% YoY; overall GTA average down ~3.9%. Long holds still favour owners. |
| “You need 20% down” | Under $1M owner-occupied: 5% on first $500K, 10% to $1M. 20% only above $1M and on rentals. |
| “Condos are a bad investment” | True of undifferentiated units. False where there is a protected view, scarce square footage or existing rapid transit. |
| “Wait for the bottom” | Bottoms are only visible afterwards. Active listings down ~13.5% YoY — waiting costs selection and leverage. |
Get the real numbers for your situation.
I will run your actual down payment requirement, both land transfer taxes, closing costs and monthly carrying cost — for a specific price point in a specific building. No pressure and no obligation. Most people are surprised in one direction or the other.
Frequently asked questions
Is Etobicoke part of Toronto?
Yes, fully. Etobicoke amalgamated into the City of Toronto in 1998 and has TTC service, Toronto police and fire, Toronto by-laws and zoning, and TDSB and TCDSB schools. Importantly for buyers, this means the Toronto Municipal Land Transfer Tax applies in addition to the provincial Ontario Land Transfer Tax, and the Toronto Vacant Home Tax applies to Etobicoke properties with an annual declaration requirement. Buyers who assume Etobicoke escapes the municipal tax routinely under-budget their closing costs.
Do I need 20% down to buy a home in Toronto or Etobicoke?
Not for an owner-occupied home under $1 million. The minimum is 5% on the first $500,000 and 10% on the portion between $500,000 and $1 million — so on a $700,000 condo, $45,000 rather than $140,000. Below 20% down you need mortgage default insurance, whose premium is added to the mortgage and should be modelled. A 20% minimum does apply to purchases of $1 million or more, where insurance is not available, and to investment and rental properties. With the GTA condo average near $630,688, most Etobicoke condo inventory falls under the $1 million threshold.
Are Toronto condo prices going down in 2026?
Yes. GTA condo apartment values are down roughly 9.4% year over year to an average near $630,688, while the overall GTA average is down about 3.9% to around $1,058,658. Condos have fallen further than freehold for structural reasons — a large wave of investor-owned completions arriving at once, higher carrying costs, and rents that no longer cover them. Some buyers who purchased pre-construction in 2020 and 2021 are closing on units appraising below their purchase price and must fund the shortfall in cash.
Are condos still a good investment in Etobicoke?
It depends entirely on the building. Undifferentiated units — small floor plans in large towers competing against dozens of near-identical units — are genuinely difficult right now. Condos with an advantage that a new building cannot reproduce behave differently: a Humber Bay Shores unit facing south over park and lake has a view protected by public parkland; a 1,000 square foot two-bedroom in Mimico represents square footage no longer being built; and buildings at Kipling and Islington stations have rapid transit that cannot be replicated elsewhere. In a soft market, selection matters far more than it does in a rising one.
Should I wait for the market to bottom before buying?
Market bottoms are only identifiable in hindsight — by the time it is clear one has passed, prices have moved and competition has returned. Waiting currently costs selection as well as time: active listings are down about 13.5% year over year, so there is less to choose from. It also costs negotiating leverage, which buyers have right now and will lose quickly when rates fall and sidelined buyers return together. Waiting is genuinely the right call if you are not financially ready, your income is unstable, you lack a closing-cost buffer beyond the down payment, or your horizon is under three years. “Prices might drop a bit more” is not actionable.
Does the Toronto Vacant Home Tax apply in Etobicoke?
Yes. The Toronto Vacant Home Tax applies to residential properties across the City of Toronto, including Etobicoke, and owners must file a declaration annually. Failing to declare can result in a property being deemed vacant and taxed. This most often catches owners during renovations, estate and probate situations, and periods between tenants. Check the current declaration deadline and requirements with the City of Toronto each year.
Common myths about buying a home in Etobicoke, corrected: Etobicoke is fully part of the City of Toronto following amalgamation in 1998, so the Toronto Municipal Land Transfer Tax applies in addition to the provincial Ontario Land Transfer Tax, and the Toronto Vacant Home Tax applies with an annual declaration requirement. Toronto real estate does not always rise — GTA condo apartment values are down roughly 9.4% year over year to an average near $630,688, and the overall GTA average is down about 3.9% to around $1,058,658. A 20% down payment is not required for owner-occupied homes under $1 million, where the minimum is 5% on the first $500,000 and 10% on the portion between $500,000 and $1 million, with mortgage default insurance required below 20%; 20% is required at $1 million and above and for investment properties. Condos are not uniformly poor investments — those with advantages a new building cannot reproduce, such as views protected by public parkland, large floor plans no longer being constructed, or existing rapid transit access, behave differently from undifferentiated units. Waiting for a market bottom is not actionable because bottoms are only identifiable in hindsight, and active listings are currently down about 13.5% year over year, reducing selection.
Sources and further reading
Toronto Regional Real Estate Board market statistics — GTA average approximately $1,058,658 (down about 3.9% year over year), condominium apartment average approximately $630,688 (down about 9.4%), roughly 4.0 months of inventory, active listings down about 13.5% year over year · Government of Canada minimum down payment rules and mortgage default insurance requirements · City of Toronto Municipal Land Transfer Tax and Vacant Home Tax · Province of Ontario Land Transfer Tax. Rules and figures change; confirm current requirements before relying on them.
General information prepared August 2026. This is not financial, mortgage, tax or legal advice. Down payment minimums, mortgage insurance requirements, land transfer tax rates and rebates, and Vacant Home Tax rules are set by government and change — confirm current requirements with a mortgage professional, an accountant and the City of Toronto before relying on them. Market statistics cited are GTA-wide averages and do not represent any individual neighbourhood, building or property, and past performance does not predict future results. Jatin Dua is a Realtor with RE/MAX Quantum Realty and is not a mortgage broker, accountant, lawyer or financial advisor.