Ontario
Buy vs rent in Toronto
A buy vs rent calculator preset for Toronto: Ontario’s closing-cost rules are built in, and the starting inputs are rounded planning values you can replace.
Starting inputs ($1,050,000 home, $2,900 rent, 0.65% property tax) are planning figures, not a market report. Replace them with current listings, rental ads and the property’s tax bill.
Buy vs rent in Toronto at a glance
On the starting inputs, buying does not overtake renting within 40 years. After ten years, renting and investing finishes ahead by about $215,638.
| Years you stay | Finishes ahead | By about |
|---|---|---|
| 3 | Renting | $120,062 |
| 5 | Renting | $133,334 |
| 10 | Renting | $215,638 |
| 15 | Renting | $350,432 |
What to check in Toronto
- Buyers inside the City of Toronto pay both Ontario land transfer tax and a municipal land transfer tax, which roughly doubles the tax; first-time buyer rebates apply to each.
- Ontario’s annual rent increase guideline (2.1% in 2026) applies to many older rentals but not to units first occupied after November 15, 2018.
- For condos, ask for a status certificate and review the reserve fund before treating the monthly fee as fixed.
Ontario closing costs
Ontario land transfer tax is tiered. Toronto adds a municipal land transfer tax. First-time buyer rebates are available.
Questions people ask
Is it better to buy or rent in Toronto?
It depends on how long you stay and what prices, rents and returns do. With the starting inputs on this page (a $1,050,000 home and $2,900 rent), buying does not overtake renting within 40 years. Replace the inputs with current listings and rental ads for your own answer.
How much are closing costs when buying in Toronto?
On the starting inputs, estimated closing costs are about $39,050, including $34,950 of transfer tax and registration fees. Ontario land transfer tax is tiered. Toronto adds a municipal land transfer tax. First-time buyer rebates are available.
What property tax rate does the Toronto calculator use?
0.65% of the home’s value per year, a rounded planning figure. Use the property’s actual tax bill when you have it.
Nearby buy vs rent pages
Educational illustration; not advice.