Toronto is one of the fastest-growing cities in the world, and for good reason! On top of being Canada’s economic hub, we also have great homes, transit, nightlife, culture, amenities, and overall quality of living. 

If you’re considering a move to Toronto, you may have wondered which path is best for you – renting a home or choosing to buy one. Both options have their pros and cons. However, in today’s market, the advantages of homeownership far outweigh the benefits of renting. 

As local real estate agents, we understand the vast intricacies of Toronto’s housing markets inside and out. If you’re relocating to the city, here’s our best advice for why you should buy a home instead of renting. 

Rental Market Recap

While Toronto’s rental market has always been expensive, it’s now more competitive than ever. With increased interest rates influencing the cost of mortgages, a higher number of residents are unable to afford home financing. As a result, there’s a greater need for rental housing in the city. Landlords have been capitalizing on this demand by inflating their rates. 

Today, the average cost of rental housing in Toronto is at an all-time high – with no sign of slowing down. At the end of 2022, the average rent price across available units rose by over 26% year over year.  

Even if future changes to interest rates allow for more Toronto buyers to pursue homeownership, it’s unlikely that rental costs will drop. As a result, it makes sense to get into the housing market sooner rather than later. 

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Looking for more helpful blog posts about buying a home in Toronto? Check out these articles below. 

• Buying a Home? Here Are 5 Things Not To Do
• 10 Important Tips For Buying a Home
• What First-Time Buyers Must Know About Home Inspections

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Long Term Appreciation

One of the best reasons to buy a home in Toronto is to build personal wealth. With some of the highest property values in North America, real estate in Toronto makes an exceptionally smart investment. As you pay off your mortgage, you’re slowly building equity that you can tap into in the future when you sell your home. 

Not only does renting not allow you the opportunity to build equity for yourself, but the premium rates of today’s market can make it more difficult to save for the future.

When you rent, you’re essentially paying your landlord’s mortgage. It makes more financial sense to let your money work for you. Not to mention, Toronto’s population is projected to continue growing for decades to come. Looking ahead, the combination of federal immigration targets and natural growth will continue applying pressure on the city’s housing supply. As a homeowner, this demand will be greatly beneficial to you when it’s time to sell. 

Programs & Incentives 

Another reason to buy a home in Toronto is the various assistance programs tailored to new Canadians, relocators, and first-time buyers. Both the federal and provincial governments offer unique incentives and rebates to help alleviate certain costs associated with buying. 

For instance, the new-to-Canada program allows newcomers to purchase a home with as little as 5% down. For buyers just entering the cycle of homeownership, land transfer tax rebates and the first-time home buyer incentive are designed to help reduce the financial burden of your purchase. 

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Moving to Toronto from outside of Ontario or Canada? Explore these relocator-focused resources from our website. 

• How to Finance a Toronto Home if You’re New to Canada
• Find the Perfect Toronto Neighbourhood For You 
• Working With a Real Estate Agent as a Relocator

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Buying With Stephanie De Souza & Associates

If you’re looking to buy a home in Toronto, the best place to start is with a top-notch real estate agent. That’s where we come in. In our close to two decades of industry experience, we’ve created a bespoke buying process that’s proven to help you get the absolute best value from your purchase. 

We specialize in supporting relocators and new Canadians, providing an experience that’s seamless, straightforward, and stress-free. When you work with our team, we make you feel like our only client. Have a question? Want to view a home? We’re always available to meet your needs. 

Relocating to Toronto? Our specialized buying services can help you find the perfect place to call home while making a strategic long-term investment. Send us an email or call 647.330.5279 to get started.