Mortgages in The Annex
A central neighbourhood near the University of Toronto, with large Victorian homes, many split into units, and a lively Bloor Street. Here’s what buying there costs and which rules apply, before you compare lenders with one licensed mortgage professional.
Short answer
The Annex is in Toronto, so Toronto’s tax rates and Ontario’s rules apply. On a $1,000,000 home you’d need at least $75,000 down and $32,950 in land transfer tax ($24,475 for a first-time buyer). Property tax runs about $767 a year per $100,000 of assessed value.
Buying in The Annex
A central neighbourhood near the University of Toronto, with large Victorian homes, many split into units, and a lively Bloor Street.
Large Victorian and Edwardian houses are often divided into several units, which makes the area popular with investors buying multi-unit homes. Single-family buyers here are often looking at major renovations.
What to know about a mortgage in The Annex
Older homes in The Annex 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.
The Annex 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.
How NorthMerit can help
Tell us what you’re planning and we’ll connect you with one licensed mortgage professional who compares lenders for you. It’s free, and there’s no obligation.
What it costs to buy a $1,000,000 home in The Annex
| Repeat buyer | First-time buyer | |
|---|---|---|
| Minimum down payment | $75,000 | $75,000 |
| Mortgage insurance (added to the loan) | $37,000 | $37,000 |
| Sales tax on insurance (cash) | $2,960 | $2,960 |
| Ontario + Toronto land transfer tax | $32,950 | $24,475 |
| Cash at closing | $110,910 | $102,435 |
Example price, not a local average. Minimum down payment and a 25-year amortization; legal fees, title insurance and adjustments are extra.
Toronto rules that apply in The Annex
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.
- Minimum down payment (Financial Consumer Agency of Canada)
- Mortgage insurance premiums (CMHC)
- Calculating land transfer tax (Government of Ontario)
- Land transfer tax refunds for first-time buyers (Government of Ontario)
- Municipal Land Transfer Tax rates (City of Toronto)
- Toronto property tax rates
- Toronto: vacant home tax
- Toronto: rental licensing
- Toronto: additional units
- Home Ownership Assistance Program
Common questions
How much down payment do I need for a home in The Annex?
What property tax will I pay in The Annex?
Can I add a rental unit to a home in The Annex?
Who can help me get a mortgage in The Annex?
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