Here is how much income you will need to afford a Toronto home in 2025.
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Toronto February 2025’s average home price in Toronto is $1,084,547. If you have found yourself wondering what it takes to afford the average priced home in Toronto, look no further as we break down the cost in our income to afford a home in Toronto report.
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 February 2025 was 6.84% for the 5-year fixed mortgage rate.
To ensure the borrower will be able to repay their mortgage, the mortgage payment is also tested against a stress test mortgage rate. This already high mortgage rate of 6.84% will be bumped up an additional 2% for purposes of determining what the mortgage borrower can afford.
It would take income of $233,755 to afford the average home price of $1,084,547 in Toronto for February 2025.
This income calculation is based on the following:
- 20% down payment
- 6.84% mortgage rate (8.64% 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
Income of $233,755 is a lot! so much so that this annual household is in the top 2% of income percentiles just to afford the average priced home in Toronto. This is far from affordable for the typical homebuyer. Home prices are much lower in certain parts of the GTA.
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 |
| 02/2025 | $1,084,547 | 6.48% | $233,755 |
Average home prices in Toronto
These are the average home prices in Toronto across home types for February 2025:
| Home Type | Average Price |
|---|---|
| All Home Types | $1,084,547 |
| Att/Row/Townhouse | $991,066 |
| Condo Apartment | $688,055 |
| Detached | $1,445,879 |
| Semi-Detached | $1,079,996 |
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 February 2025 across the Greater Toronto Area.
| Area | Annual Salary |
|---|---|
| All TRREB Areas | $233,755 |
| Halton Region | $255,285 |
| Burlington | $224,348 |
| Halton Hills | $226,196 |
| Milton | $211,900 |
| Oakville | $318,227 |
| Peel Region | $223,942 |
| Brampton | $211,144 |
| Caledon | $286,442 |
| Mississauga | $224,781 |
| City of Toronto | $234,264 |
| Toronto West | $217,049 |
| Toronto Central | $248,027 |
| Toronto East | $224,023 |
| York Region | $266,060 |
| Aurora | $246,485 |
| East Gwillimbury | $272,538 |
| Georgina | $174,408 |
| King | $567,349 |
| Markham | $259,283 |
| Newmarket | $254,055 |
| Richmond Hill | $283,061 |
| Vaughan | $262,424 |
| Stouffville | $280,879 |
| Durham Region | $196,168 |
| Ajax | $211,970 |
| Brock | $174,053 |
| Clarington | $196,588 |
| Oshawa | $170,447 |
| Pickering | $205,234 |
| Scugog | $208,801 |
| Uxbridge | $241,557 |
| Whitby | $214,294 |
| Dufferin County | $180,576 |
| Orangeville | $180,576 |
| Simcoe County | $198,620 |
| Adjala-Tosorontio | $318,362 |
| Bradford | $221,996 |
| Essa | $166,433 |
| Innisfil | $183,255 |
| New Tecumseth | $194,269 |
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.