Mortgages in Downtown Toronto

Buying in Downtown Toronto

The core of the city, dominated by condo towers, the Financial District and busy commercial streets, with many first-time buyers and investors.

Most homes here are condo suites, from studios to two-bedrooms, with a smaller number of older row houses on the side streets. Many buyers walk or take transit to work, and a good share of units are owned by investors and rented out.

What to know about a mortgage in Downtown Toronto

Many homes in Downtown Toronto are condos. Lenders include your monthly condo fees when they work out what you can afford, and your lawyer will review the building’s status certificate, which shows the reserve fund and any upcoming special assessments.

Older homes in Downtown Toronto often need updates. A thorough inspection helps you budget, and if you plan to renovate, ask about a purchase-plus-improvements mortgage, which adds the cost of the work to your mortgage up front.

Downtown Toronto has steady rental demand. If you’re buying to rent, or to live in one unit and rent another, lenders count part of the expected rent as income, and the down payment and rules are different from a home you live in alone.

What it costs to buy a $600,000 home in Downtown Toronto

Toronto rules that apply in Downtown Toronto

Toronto’s 2026 residential property tax rate is 0.7673%, about $767 a year for every $100,000 of assessed value. Source

Toronto charges a Vacant Home Tax of 3% of the assessed value on homes left empty for more than six months of the year. Every owner has to declare their home’s status each year, even if they live in it. Source

Since May 2023, Toronto allows up to four units in residential zones across the city, so a house can become a duplex, triplex or fourplex, subject to building permits. Source

Operators of multi-tenant (rooming) houses need a City licence, under a city-wide framework in place since March 2024. Source

Sources

We checked these figures against official sources in October 2026. Rules and rates change, so confirm the details with your mortgage professional, lawyer or the source before you rely on them.

1. Minimum down payment (Financial Consumer Agency of Canada)
2. Mortgage insurance premiums (CMHC)
3. Calculating land transfer tax (Government of Ontario)
4. Land transfer tax refunds for first-time buyers (Government of Ontario)
5. Municipal Land Transfer Tax rates (City of Toronto)
6. Toronto property tax rates
7. Toronto: vacant home tax
8. Toronto: rental licensing
9. Toronto: additional units
10. Home Ownership Assistance Program

Common questions