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Income to afford a home in toronto hero image

The average home price in Toronto was $1,051,969 across all property types in April 2026, according to the Toronto Regional Real Estate Board (TRREB). Affording that home requires an annual household income of approximately $195,100 — based on a 20% down payment, the current 5-year fixed mortgage rate of 4.89% (stress tested at 6.89%), and the CMHC gross debt service (GDS) guideline of 39%.

To put that in context: the median Canadian household income is approximately $100,000 per year. The income required to afford the average Toronto home is nearly double that figure.

Bank of Canada rate cuts through 2024 and 2025 have reduced the income requirement from its February 2025 peak of $233,755 — when bond yields spiked on global tariff uncertainty — but Toronto housing remains deeply unaffordable for the vast majority of Canadian households.

Income to afford a home in Toronto across time

The table below tracks average Toronto home prices, the prevailing 5-year fixed mortgage rate, and the annual household income required to afford the average home. Income figures use the stress-tested rate (contract rate + 2%) and the CMHC 39% GDS guideline with 20% down.

Date Average Price Mortgage Rate Annual Income
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
03/2026 $1,017,796 4.89% $189,300
04/2026* $1,051,969 4.89% $195,100

*April 2026 figures from TRREB Market Watch, released May 5, 2026. The 5-year fixed mortgage rate reflects the posted rate used for stress-test purposes.

Average home prices in Toronto in 2026

The following table shows average home prices by property type across the Greater Toronto Area as of April 2026, alongside the annual household income required to purchase with 20% down. All prices are from the TRREB Market Watch April 2026 report.

Home Type Average Price Income Required
All Home Types $1,051,969 $195,100
Condo Apartment $635,653 $124,000
Att/Row/Townhouse $839,509 $158,800
Semi-Detached $1,033,469 $192,000
Detached $1,372,688 $249,900

Even the entry-level condo at $635,653 requires $124,000 in annual household income — well above what most single earners in Toronto bring home.

Income needed to afford a detached home across the GTA

The following table shows the annual household income required to afford a detached home in each area of the Greater Toronto Area, using actual TRREB April 2026 average prices. All figures assume a 20% down payment, 4.89% 5-year fixed rate (stressed at 6.89%), 25-year amortization, $354/month property tax, and $150/month heating cost.

Area Avg Detached Price Income Required
All TRREB Areas $1,372,688 $249,900
Halton Region $1,616,484 $291,500
Burlington $1,359,709 $247,700
Halton Hills $1,156,581 $213,000
Milton $1,238,206 $226,900
Oakville $2,058,983 $367,100
Peel Region $1,192,316 $219,100
Brampton $1,018,564 $189,400
Caledon $1,225,233 $224,700
Mississauga $1,364,097 $248,400
City of Toronto $1,668,973 $300,500
Toronto West $1,410,406 $256,300
Toronto Central $2,461,095 $435,700
Toronto East $1,180,165 $217,000
York Region $1,433,812 $260,300
Aurora $1,461,203 $265,000
East Gwillimbury $1,106,722 $204,500
Georgina $781,475 $148,900
King $1,718,286 $308,900
Markham $1,511,813 $273,600
Newmarket $1,142,017 $210,500
Richmond Hill $1,767,320 $317,300
Vaughan $1,548,367 $279,900
Stouffville $1,482,557 $268,600
Durham Region $958,153 $179,100
Ajax $990,854 $184,700
Brock $722,200 $138,800
Clarington $889,795 $167,400
Oshawa $789,622 $150,300
Pickering $1,172,030 $215,600
Scugog $884,989 $166,600
Uxbridge $1,168,250 $215,000
Whitby $1,043,400 $193,700
Dufferin County $846,581 $160,100
Orangeville $846,581 $160,100
Simcoe County $901,323 $169,400
Adjala-Tosorontio $1,052,160 $195,200
Bradford $1,038,650 $192,800
Essa $887,350 $167,000
Innisfil $783,054 $149,200
New Tecumseth $768,416 $146,700

Oshawa — frequently cited as the most affordable part of the GTA — requires $150,300 in annual household income to afford a detached home. Even that is 50% above the median Ontario household income of approximately $95,000. At the other extreme, a detached home in Toronto Central requires $435,700 in annual income — more than four times the median Canadian household income.

How is affordability determined?

Home affordability is calculated using the CMHC guidance that your gross debt service (GDS) ratio — total monthly housing costs divided by gross monthly income — must not exceed 39%.

Monthly housing costs include:

  • Mortgage payment — calculated at the stress-tested rate (5-year fixed + 2%)
  • Property tax — estimated at $4,250/year ($354/month)
  • Heating — estimated at $150/month

A 20% down payment is used to avoid CMHC mortgage default insurance. The amortization period is 25 years.

Worked example — all TRREB areas, April 2026:

  • Home price: $1,051,969
  • Down payment (20%): $210,394
  • Mortgage: $841,575
  • Monthly payment at 6.89% stress test, 25 years: $5,836
  • Property tax + heat: $504/month
  • Total monthly housing cost: $6,340
  • At 39% GDS: $195,100 annual household income required

For a personalised estimate, use our mortgage affordability calculator. For a full breakdown of closing costs including the Ontario and Toronto land transfer taxes, see our Ontario land transfer tax calculator and Toronto land transfer tax calculator.

How has Toronto housing affordability changed in 2026?

The income required to afford the average Toronto home peaked at $233,755 in February 2025, when global tariff uncertainty pushed bond yields — and with them, 5-year fixed mortgage rates — sharply higher. By April 2026, rate cuts from the Bank of Canada have brought the 5-year fixed rate back to approximately 4.89%, reducing the income requirement to $195,100.

That is a meaningful improvement in monthly carrying costs, but the headline number remains stark: Toronto homeownership requires nearly double the median Canadian household income.

For first-time buyers, the First Home Savings Account (FHSA) allows up to $40,000 in tax-free, tax-deductible contributions toward a first home purchase — one of the most effective tools available to close the down payment gap. The Home Buyers’ Plan (HBP) allows an additional $35,000 withdrawal from your RRSP.

Sources

WealthVieu
Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

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