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  • Muhibur Rahman

Down Payment to buy a home in Toronto

So, how much do you actually need for the down payment? Well, from my analysis and discussing with many realtors, the minimum you need is 35%. That is assuming, you will not live in the home and the rent should cover mortgage, taxes, utilities etc. Still maybe a stretch but one should be somewhat conservative.


The market did cool down a bit, however, still not very affordable for majority of Torontonians. Let's analyze a property.



This is a cute bungalow. It is a 2+2 property. I am assuming the rent is $2800 for the entire house based on a property (similar area but semi detached) listed on Padmapper.

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Now, let's take a financial look at our property.


The property taxes are $3228 for this property (to be always verified with City of Toronto) and we are assuming no maintenance cost. Which we know is not the case. Again, we are being very conservative and approaching from theory point of view. However, this paints a picture for the reader to understand how much money they should have as down payment. If anything, I would argue, one should have 40% down payment for this property to be even more on safe side.


This is an example and high level analysis. If you have any questions about neighborhoods in Toronto or want me to analyze a property for you, send me a quick note! Would love to help and guide you on the correct path!

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