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Here is how much income you will need to afford a Toronto home in 2025.

Income to afford a home in toronto hero image

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.