2023 started with Toronto condos going up in price. If you are a first time home buyer. most probably your only choice is a condo if you want to be a home owner in the Greater Toronto Area. In this article we’ll go through the cost of buying a condo in Toronto and it’s major neighbourhoods. After going through this condo guide, you’ll have a good understanding of how much does it cost to buy a condo in Toronto!
Costs of Buying a Condo Apartment in Toronto
With the average approximate 15% annual appreciation of condo apartments in Toronto from January 1996 to May 2023, condos have been at the centre of attention for many buyers, including first time home buyers, investors, and luxury buyers.
In this article we’ll review how much costs you should expect when purchasing a condo, and also different condo apartment price ranges in different areas of Toronto.
After that will come a complete guide about all the costs involved in buying a condo apartment in Toronto. Followed by important advises for purchasers from Top Condo Real Estate agents in Downtown Toronto.
Read More : Buying a Condo in Toronto
Downtown Toronto Condo Cost:
The biggest condo apartment market in Toronto is Downtown, with over 35% of all condo sales if we look at the past month only. The Downtown Toronto is consisted of two parts, west downtown and east downtown. The cost of buying a condo apartment in each side of downtown can be different.
The West side of downtown, which is called C01 in Toronto’s Real Estate Board’s Maps, stretched from Yonge St in east all the way to Dufferin St, and from Bloor St to Lake Ontario north to south. The East side of downtown is again stretched from Yonge St all the way to Don Valley Parkway and north to south from Bloor St. to Lake Ontario.
A one bedroom condo apartment in Downtown Toronto has a price tag anywhere between approx $650,000 to $750,000 depending on the neighbourhood, square footage, proximity to public transit such as subway, proximity to entertainment such as clubs and bars and restaurants, or proximity to the job centres such as financial district. A two bedroom condo in the same areas could be anywhere between $800,000 to over $1,100,000.
In other prime areas such as North York or Mimico (South Etobicoke) the price tags are lower than downtown Toronto. Mimico’s condo market has been on a rise though. Any condo suit that has water views in Mimico also sells close to Downtown Toronto price points.
North York Condo Cost:
North York have a good public transit network and central North York is accessible by Subway, with less than 30 mins subway ride to downtown, is a good candidate for first-time buyers and or Condo Investors who want to get into the market with a lower purchase price. The price tag for a 1 bedroom condo in North York is approx between $550,000 to $660,000.
Mimico Condos Costs:
The average price of a 1 bedroom condo in this neighbourhood starts from approx $550,000 to $650,000.
If you are a first time buyer and you are eligible for an Insured mortgage, you can buy a condo apartment in Toronto with as low as 5% downpayment. I you are an investor and are looking to buy you 2nd or 3rd property, if a mortgage broker approves you for a conventional uninsured mortgage, you may buy a property with as low as 20% down payment.
Finding and securing a condo apartment in Toronto’s high demand market is no easy task, even savvy buyers would see a seasoned Toronto real estate agent’s help in that matter. Finding a house or a condo for sale in Toronto is not the last step, a Toronto realtor would help you with negotiations, paperwork, and could guide you through the process , and if he/she sees any red flags can pinpoint it to you, for a more detailed list of services that a Toronto Realtor does for a buyer, you can view this link.
What are the Costs of Buying a Condo Apartment in Toronto?
Costs involved in buying a condo:
As discussed above, it can be as low as 5% of the purchase price for first time buyers if they get approved by a mortgage broker or a bank, and as low as 20% for investors if they get approved by a bank or a mortgage broker. Finding downpayment for a condo in Toronto is challenging for first time home buyers. There are ways to Find downpayment for a condo in Toronto that can boost the purchasing power of first-time home buyers though.
2.Land Transfer Tax:
Other than the down payment which we talked about it in this article, a buyer has other costs such as Land Transfer Tax, which purchasing properties in Toronto have a Municipality Land transfer tax in addition to Provincial land transfer tax. (Depending on the purchase price, use this link to calculate Land Transfer Tax )
3.Legal Fees and Title Insurance.
Legal fees include closing costs such as Lawyer fees who does the closing for you. Title insurance, which it is highly recommended to be purchased and protects you against many issues related to the purchase and title ( it varies based on the insurance policy you buy)! Approx $1,500 to $2,000
Which when you move to a new place, regardless of whether you’re renting it or you’ve purchased it, you’ll have to pay. Approx $1,000 to $2,000
If you don’t insist to live in downtown Toronto you can get cheaper condo apartments in areas such as North York which has a good transit score and is in the proximity to Subway stations which can take you to downtown Toronto within approx half an hour and or you can get access to major highways such as Hwy 401 and Hwy 404, and or major streets such as Yonge St. or Sheppard Ave.
If you are wondering that Canadian homes or in particular condos in Toronto are expensive, if you compare markets like Toronto with other global cities like London, Tokyo, New York, San Francisco, you’ll notice that the home prices in Toronto are still way cheaper than many of the other global cities.
Advice from a Top Condo Real Estate Agent in Downtown Toronto:
If you are planning to invest in a condo in Toronto, below are good to know:
If you go to a newer condo apartment, usually because they have less square footage, and or been built in the very recent years, they may seem cheaper in regards to maintenance fees. However, cheaper maintenance fee is not everything. Basically you get what you paid for. If you divide the maintenance fee by the square footage of a condo apartment you might even wonder the maintenance fee per square foot might be higher than another comparable unit, with higher square footage. While the latter can give you more comfort, if you want to live in the first one, you might have to sacrifice the space!
2.If you are buying into a newer building, expect a slight rise in the maintenance fees:
Usually new condos have budgeted their maintenance fees based on a plan which was devised a few years ago, but after the developer delivers the condo to the new owners, the new condo board would conduct a new Budget Study. So expect a hike!
3.Age is important, not always though.
If you are a young first time buyer, you might prefer a newer shinier building. But remember that, newer buildings come with less space. However if you are a young family with a newborn baby, and because of affordability or your work or etc, you have to live in a condo, then you might find it a better option to buy in an older condo with much more space for you and your little ones.
4.Consult a top Toronto condo real estate agent
Getting the service of a top Toronto real estate agent who is specialized in condos, is FREE for you, unless you agree otherwise for different tiers of services!
A great condo real estate agent can help you locate the best options, and also warn you about the red flags that each building might have.
For a complete list of what a top real estate agent can do for a buyer, view this link:
The Factors Determining the Price of a Condo in Toronto
In the case of selling or purchasing a condo in Toronto, price is an influencing factor. It may be thought that pricing is simple, but there are lots of factors determining a condo’s price, so coming up with the best price in the market is really challenging.
These factors could be the interior and exterior matters, the neighborhood, real estate market condition, and even the difference between supply and demand.
Location of Toronto Condo
The Toronto neighborhood and its facilities including the availability of necessities, public transportation, entertainment centers, community, etc. increase your Toronto condo prices.
High-valued and high-quality Toronto condos have facilities like swimming pools, barbecue areas, fitness centers, spas, playing areas and gardens which decreases the residents’ expenses.
Maintenance Fees and Extra Charges
If you are using the building amenities, there’s a fee you have to pay for the maintenance of the area which is called HOA and it defines the condo’s price.
The prices will normally be lower, if the maintenance fees are higher than the average.
The available parking spaces
In a crowded city Like the GTA, available parking lots have always been a challenging matter in everyone’s life. So, if a Toronto condo offers a separate parking spot, its value may increase from $ 25,000 to $ 75,000 easily.
Upgrades and Renovations
Toronto condos which are recently renovated which have modern fixtures and accessories have higher prices.
The average price of sale
This price includes the number that Toronto condo buyers have paid for properties with the same size, neighborhood, bedroom number, building’s age, amenities and other features.
Average List Price
This price includes the average that had been listed by sellers for Toronto condos with similar features.
Average days on Market
The demand for similar Toronto condos and the probability of a condo being sold in a market is indicated by this factor.
- Height: Toronto Condos on upper floors cost higher per square foot.
- Layout: Those Toronto condos with more usable space are more expensive.
- Size: The larger the condo, its monetary value will be lower per square foot.
- View: Having a better view or Toronto lake view for example, the sale rate will be higher.
- Direction: Toronto condos facing east side direction face the sunrise and have the highest value.
- Corners: Those occupying the corner spot are highest valued.