Toronto real estate has felt uncertain lately, but for patient buyers, this is quietly one of the best moments to secure a well-located condo. Right now, there is real choice. Buyers can find true two-bedroom, two-bath split floor plan condos from reputable developers, close to the subway, in buildings with features people actually use: rooftop terraces, pools, gyms, media rooms, guest suites, and more. Well-priced options in the $600,000’s are taking longer to sell, which creates negotiating power for buyers ready to make a move.
How the Finances Can Work
Here is a simple, realistic example. Imagine buying a split two-bedroom for about $675,000. A typical down payment would be 20% (about $135,000). Closing costs, including land transfer tax (with first-time buyer rebates if they apply), legal fees, and adjustments, might add another $12,000–15,000. So the upfront investment is about $150,000. With today’s market rents, a well-located two-bedroom like this could earn about $2,700–$2,800 per month. That rental income covers a large portion of the carrying costs, so an owner does not have to carry the full amount each month out of pocket. Over ten years, that rent could add up to well over $300,000 in gross rental income, depending on the rental market and how long the owner keeps it tenanted. Meanwhile, every mortgage payment chips away at the principal. After ten years, the mortgage balance could be reduced by around $150,000 or more, depending on the mortgage plan and prepayment options used. Add to that the property’s value growth. Even with a conservative estimate of about 3% per year, a $675,000 condo could be worth around $900,000–$920,000 after ten years. So from an upfront investment of about $150,000, the owner could see:- $150,000+ in mortgage paydown
- $200,000+ in property value growth
- Rental income that helps offset carrying costs every month