How Much Does A Condo Cost in Toronto?
Friday Mar 18th, 2022
How Much Does A Condo Cost in Toronto?
Condominiums, also known as Condos, are residential units that have become the preferred choice of homebuyers in Toronto. They offer more significant living space and level of luxury, unmatched by all other types of accommodations.
Toronto condos are ideal for first-time homebuyers, luxury home seekers, and investors, considering the added average of 15% in property prices annually.
However, it is essential to understand the factors impacting Toronto condo prices before signing papers and making your purchase decision. Let us discuss all the aspects of your condo property search, ranging from the condo prices in various parts of Toronto to the additional costs of purchasing a condo.
The following provides only a representative idea of Toronto condo prices, while actual costs on the ground may slightly differ from property to property and person to person.
Understanding Toronto Condo Prices
By far, Downtown Toronto remains the hottest market for condos. According to data, it registered almost 35% of all condo sales in 2021.
Downtown Toronto is divided between West Downtown and East Downtown, and the cost of buying condos in each location differs significantly. Factors such as neighbourhood, facilities offered, proximity to public utilities like schools and hospitals, closeness to public transit systems and nearby entertainment or work hubs decide the price of a particular condo.
On average, a one-bedroom condo in Downtown Toronto ranges from between $500,000 and $650,000. On the other hand, if you are looking for two-bedroom accommodation, it might cost you around $750,000 to $1 million in the same locality.
The Downtown Core is the most expensive location concerning buying condos in Toronto, with high-profile neighbourhoods including King West, the Entertainment District, Liberty Village, Queen West and Yorkville. Most other places in the city are considerably cheaper.
If you are a first-time homebuyer, North York is an excellent area better suited to various needs and budgets. North York offers a wide variety of urban amenities such as shopping centres, diverse restaurants and bars, and top schools without the congestion found in the city. It has excellent connectivity to other regions of the Greater Toronto Area via the subway and nearby highways.
A one-bedroom condo in North York will cost somewhere from $500,000 to 600,000.
Mimico is an upcoming district concerning condos. Although the current prices are lower than other parts of Toronto, they are fast rising and provide an excellent investment destination for those looking for quick gains in property prices.
Condos in Mimico provide the perfect combination of a suburban environment and proximity to the busy city.
The Various Costs Involved In Buying A Condo
Numerous payments are involved when buying a Condo in Toronto beyond the overall cost.
Your condo downpayment is dependent on the price at which you purchase the condo. It is an initial up-front partial payment for your condo purchase,
Securing a down payment for condo Toronto is an overwhelming task. However, you can choose several strategies to prepare yourself for the purchase, such as turning to savings, family and friends, and The Home Buyer's Plan.
Your down payment can be as high as you can afford. Remember, the greater the down payment you make, the less you'll have to borrow from the bank. A more significant initial downpayment means lower interest and possibly lower mortgage.
If you are a first-time buyer, these costs can be as low as 5% of the house costs. However, investors looking to buy second or third properties can get approved by a mortgage broker to reduce these costs to around 20%.
Land Transfer Tax (LTT)
Toronto is a city that levies a traditional Municipal Land Transfer Tax and Provincial Land Transfer Tax. These taxes naturally cause a double burden of taxation on homebuyers. However, the amount of tax differs from location to location.
When you buy land or an interest in land in Ontario, you pay Ontario's Land Transfer Tax. The Land Transfer Tax refers to a fee that each buyer must pay within 30 days of purchasing the property that depends on the value of your property. The 30 days is calculated from your completed transaction.
Legal Fees and Assessment Charges
Buying a Toronto Condo is a highly complex task involving paperwork and visits to the government authorities for registration. A proper property assessment of its various aspects is advisable to help better understand average Toronto condo prices.
But all this costs money, and it would be financially sensible for you to consider these charges before deciding to purchase a condo.
Legal Fees include the fees of a lawyer who completes paperwork and closes the deal on your behalf. Title insurance is included in these charges.
Shifting Charges are incurred when shirting residences from your old house to a new one. Investors and second-home buyers will not have to pay for these charges.
Apart from all these one-time costs, you would also be required to pay annual property tax to the concerned authorities.
Toronto is a city that offers you world-class facilities. It presents a truly modern lifestyle like any other major city in the world. But comparatively speaking, the condo charges here are much less than in other cities. As a result, investing in Toronto Condos is an excellent financial option.
At Toronto Condo Team, our dedicated real estate brokers provide excellent services and bridge the gap between prospective clients and their dream condo for sale. Whether you are shopping for your ﬁrst condo or are interested in learning more about Toronto Condo Prices, our team works with you throughout the entire process.