Toronto started off 2025 with an average home price of $1,040,994 across all home types. January 2025’s average home price in Toronto is $26,192 less than the average home price on December 2024 of $1,067,186.
While on the surface a lower home price may appear more affordable, in reality the affordability of a home is impacted by many factors, one of the main factors being mortgage interest rates. The average interest rate at the end of January 2025 was 5.01% for the 5-year fixed mortgage rate. So how much income does it take to afford a home in Toronto?
It would take income of $195,149 to afford the average home price of $1,040,994 in Toronto for January 2025.
This income calculation is based on the following:
- 20% down payment
- 5.01% mortgage rate (7.01% for stress test)
- Maintain a debt-to-income ratio of 39%
- $354 / month of property tax
- $150 / month of heating expense
- 25 Year amortization period
While the amount required to purchase a home in Toronto has decreased from the $200,113 it would have taken in December 2024, it would still require a household income in the top 2% of income percentiles to afford this home price. This is far from affordable for the typical homebuyer.
Income to afford a home in Toronto across time
Here is a breakdown of the average home prices, mortgage rates and salary needed to afford the home in Toronto for 2024 and 2025.
Date | Average Price | Mortgage Rate | Annual Salary |
---|---|---|---|
01/2024 | $1,026,703 | 5.71% | $203,741 |
02/2024 | $1,108,720 | 5.63% | $217,399 |
03/2024 | $1,121,615 | 5.62% | $219,573 |
04/2024 | $1,156,167 | 5.50% | $223,710 |
05/2024 | $1,165,691 | 5.49% | $225,245 |
06/2024 | $1,162,167 | 5.47% | $224,251 |
07/2024 | $1,106,617 | 5.29% | $211,207 |
08/2024 | $1,074,425 | 5.16% | $203,374 |
09/2024 | $1,107,291 | 5.04% | $207,095 |
10/2024 | $1,135,215 | 4.86% | $208,826 |
11/2024 | $1,106,050 | 4.81% | $203,024 |
12/2024 | $1,067,186 | 4.99% | $199,344 |
01/2025 | $1,047,728 | 5.01% | $195,149 |
Average home prices in Toronto
These are the average home prices in Toronto across home types for January 2025:
Home Type | Average Price |
---|---|
All Home Types | $1,040,994 |
Att/Row/Townhouse | $983,856 |
Condo Apartment | $670,675 |
Detached | $1,377,430 |
Semi-Detached | $1,047,728 |
Income needed to afford a home across Toronto
This is a breakdown of what it would take to afford a home in Toronto based on the area you want to live in. These income figures are based on the price of a single-detached house in January 2025 across the Greater Toronto Area.
Area | Annual Salary |
---|---|
All TRREB Areas | $195,149 |
Halton Region | $215,900 |
Burlington | $206,782 |
Halton Hills | $198,179 |
Milton | $194,739 |
Oakville | $248,908 |
Peel Region | $193,963 |
Brampton | $185,542 |
Caledon | $240,189 |
Mississauga | $196,190 |
City of Toronto | $185,599 |
Toronto West | $178,117 |
Toronto Central | $195,415 |
Toronto East | $175,948 |
York Region | $225,380 |
Aurora | $274,558 |
East Gwillimbury | $248,968 |
Georgina | $177,614 |
King | $337,022 |
Markham | $226,012 |
Newmarket | $198,396 |
Richmond Hill | $243,298 |
Vaughan | $207,122 |
Stouffville | $247,618 |
Durham Region | $170,234 |
Ajax | $173,413 |
Brock | $127,755 |
Clarington | $162,668 |
Oshawa | $150,088 |
Pickering | $179,503 |
Scugog | $187,371 |
Uxbridge | $251,106 |
Whitby | $192,555 |
Dufferin County | $172,505 |
Orangeville | $172,505 |
Simcoe County | $189,237 |
Adjala-Tosorontio | $228,584 |
Bradford | $253,894 |
Essa | $146,296 |
Innisfil | $172,260 |
New Tecumseth | $174,136 |
How is affordability determined?
Home affordability is based on the CMHC guidance that your maximum gross debt service ratio not exceed 39%. Your gross debt service ratio is related to all your home related expenses, such as mortgage payment, heating and property taxes etc.
For the purposes of these calculations property taxes were estimated at $4250 a year with heating expenses at $150 per month. The loan term used was 25-years and the mortgage rate was the average rate for the period to track affordability over time. A down payment of 20% was used on the purchase price of the home to avoid any mortgage default insurance.
It is important to note that substantial additional costs may arise on the closing of a home such as land transfer tax which you should be prepared for.
If you want to estimate the affordability of a specific home purchase, it would be wise to use a mortgage affordability calculator to provide you with an estimate that is suited to your situation.
How has affordability been in Toronto for 2025?
While home affordability remains a challenge for many looking to purchase a home in Toronto the price of homes paired with interest rates have seen home affordability improve in early 2025. While home affordability has improved, homes are still far from being considered affordable as Canada is firmly in a housing crisis.