Every agent tells you to buy. I would rather show you the actual numbers and let you decide — including the cases where continuing to rent is clearly the better call.
As of early July 2026, the median Toronto condo sold for roughly $590,000, around $766 per square foot. There were about 5,850 active listings with roughly 5.3 months of supply — and sales have been rising month-over-month while new listings decline, which means demand is firming relative to supply rather than the reverse.
On financing, the best five-year fixed rates sit near 3.94%, with high-ratio insured rates around 4.04%. The Bank of Canada held its overnight rate at 2.25% in mid-July, so variable pricing has been stable while fixed rates drift with bond yields.
Condo prices softened over the past couple of years while Toronto rents did not. That has narrowed the gap between a monthly rent cheque and a monthly ownership cost more than at almost any point in the last decade. It has not closed the gap — but it has narrowed it.
Take a one-bedroom that rents for $2,300 a month, versus buying a comparable unit at $590,000 with 10% down at 4.04% over 30 years.
| Renting | Buying | |
|---|---|---|
| Monthly housing cost | $2,300 | ≈ $2,620 mortgage + ≈ $354 property tax + ≈ $550 condo fees |
| Total monthly | $2,300 | ≈ $3,520 |
| Cash to start | First & last ≈ $4,600 | ≈ $73,000 all-in |
| Builds equity | No | Yes — roughly $790–$850/mo of that payment is principal early on, rising every month |
| Exposed to price moves | No | Yes, both directions |
So buying that unit costs roughly $1,220 more per month and about $73,000 up front. Of that monthly difference, a meaningful chunk is principal — money moving from one pocket to another rather than disappearing. But it is still money you must produce every month, and the up-front cash is real.
Your rent, your savings, your target price. The calculator shows monthly cost, cash-to-close, and the income a lender will want to see.
I would rather you rent for another year and buy well than stretch now and regret it. Renting is the right answer when:
The rough test: divide your total entry costs — down payment aside, so land transfer taxes, legal, insurance PST, roughly $12,000 on this $590,000 example after rebates, closer to $19,000 at $750,000 — by the monthly amount of your payment that goes to principal. That gives you a crude number of months before ownership starts pulling ahead of renting, before any price movement.
On the example above, that is roughly a year and a half on this example — longer at higher price points — just to work off the friction — which is why the five-year horizon keeps coming up.
Most of my clients started as renters. Some bought within a year, some rented for three more and bought better. The ones who did well were not the ones who timed the market — they were the ones who knew their real number before they started looking, so they could move quickly when something right appeared and pass on everything else without second-guessing.
If you are renting right now and buying is somewhere on your horizon, the useful move is not to decide today. It is to find out precisely what you would qualify for and what it would cost, so the decision is arithmetic instead of anxiety.
Month to month, renting is still cheaper for most units. A one-bedroom renting at $2,300 compares to roughly $3,520 all-in to own a comparable $590,000 condo with 10% down at current rates. Buying wins over longer horizons because a portion of the payment builds equity and the principal-and-interest portion is fixed, while rent generally rises.
Commonly around five years. Entry costs in Toronto are unusually high because buyers pay both provincial and municipal land transfer tax, and selling costs commission. Shorter holds frequently lose money once all transaction costs are counted.
The median Toronto condo sold for approximately $590,000 in early July 2026, around $766 per square foot, with roughly 5,850 active listings and about 5.3 months of supply.
As of late July 2026 the best five-year fixed rates were near 3.94%, with high-ratio insured rates around 4.04% and big-bank posted rates higher. Remember lenders qualify you at the greater of your rate plus two percent or 5.25%, not the rate you are quoted.
Not necessarily, but it deserves scrutiny. A five percent down payment means the highest mortgage insurance premium at 4.00% plus Ontario's 8% PST on it in cash. If reaching ten or twenty percent is achievable within a year, the savings are substantial. If rents are climbing faster than you can save, waiting can also cost you.
This page is general information for Ontario buyers, not legal, tax, mortgage, or financial advice, and it is not a guarantee of approval, pricing, or availability. Figures are estimates current as of July 2026 and change frequently. Confirm your own numbers with a licensed mortgage professional and a real estate lawyer before making an offer. Brendan Stewart is a Sales Representative registered with RECO (Lic. 6004758) with Keller Williams Referred Urban Realty, Brokerage.
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