Investors looking at rental condos in Toronto and the GTA face a market with 6,983 apartment-style units listed as of October 2026, a median asking price of $560,000, and borrowing costs shaped by the Bank of Canada policy rate at 2.25%. Understanding how rent, expenses and tax reporting combine is essential before making an offer.
Key Takeaways
- 6,983 condos listed in Toronto and the GTA with a median asking price of $560,000 as of October 2026
- One-bedroom units listed at a median of $459,000; two-bedroom units at $589,900
- Average rent in the Toronto census metropolitan area was $2,364 as of October 2025, according to the Canada Mortgage and Housing Corporation annual survey
- The Bank of Canada policy rate stands at 2.25%, with the five-year posted rate at 6.09% (most borrowers negotiate below the posted figure)
- Canada Revenue Agency requires rental income and all allowable expenses to be reported annually
What the Listings Show
As of early October 2026, the Toronto and the GTA market holds 6,983 condos and apartments available for purchase, representing just under one-third of all residential listings in the region. The median asking price is $560,000, and units have been on the market for a median of 32 days so far.
Of the 3,313 condos first listed in the last 30 days, the median asking price is $565,000. Investors shopping by bedroom count will find 1,399 one-bedroom units listed at a median of $459,000 and 4,830 two-bedroom units at a median of $589,900 across all property types in the region.
Toronto itself accounts for 8,313 of the region's 22,800 total listings, with 4,425 of those first listed in the last 30 days. Mississauga holds 2,222 listings, Brampton 1,625, and Oakville 1,138.
Rent Figures and What They Represent
The Canada Mortgage and Housing Corporation conducts an annual survey of purpose-built rental buildings each October. The most recent data, covering October 2025, shows average rent in the Toronto census metropolitan area at $2,364, up 2.2% from the prior year's figure of $2,313.
This survey captures only purpose-built rental stock, not condos rented by individual owners, so it serves as a reference point rather than a live asking-rent index. Actual rents for investor-owned condos can vary widely depending on location, building age, amenities, unit condition and lease terms.
Borrowing Costs in October 2026
The Bank of Canada policy rate—the target for the overnight rate—sits at 2.25% as of October 2026. The Canadian Overnight Repo Rate Average, which tracks the actual cost of overnight borrowing, was 2.30% on the same date.
The five-year posted rate for conventional mortgages at the six major chartered banks stands at 6.09% as of late September 2026. This is the posted rate, not what most borrowers actually pay; the majority negotiate a rate below that figure. Lenders set contract rates based on the borrower's credit profile, down payment, property type and whether the mortgage is insured or uninsured.
Investment properties typically require a larger down payment than owner-occupied homes and may carry a rate premium. Borrowers should speak directly with lenders or a mortgage broker to understand the terms available to them.
How Investors Think About Carrying Costs
Investors evaluate rental properties by comparing expected rent against all the costs of ownership. Carrying costs include the mortgage payment (principal and interest), property taxes, condominium fees, insurance, utilities the landlord pays, repairs, and a reserve for vacancy.
Vacancy is the period when a unit sits empty between tenants or during turnover. Even a well-located condo will experience some vacancy over time, and investors factor that into their annual budget. A unit that rents quickly in a strong market may still face a gap if a tenant moves out mid-year.
Condominium corporations set rules that can affect rental investors. Some buildings restrict the total percentage of units that may be rented, impose minimum lease terms, or require landlord registration. Investors should review the declaration, bylaws and rules before purchasing, and confirm that renting is permitted without restrictions that would interfere with their plans.
What the Canada Revenue Agency Requires
According to the Canada Revenue Agency guide on rental income, anyone earning rent from real estate must report that income on their annual tax return. The guide, updated for 2025, explains that rental income is generally considered property income, not business income, unless the landlord provides significant additional services beyond basic accommodation.
Landlords report gross rental income—the total rent received during the year—and deduct allowable expenses to arrive at net rental income or loss. Allowable expenses include advertising, insurance, interest and bank charges, office expenses, professional fees such as legal and accounting, management and administration fees, repairs and maintenance, salaries and wages, property taxes, travel, utilities, and motor vehicle expenses where applicable.
Prepaid expenses must be deducted in the year to which they apply, not the year paid. For example, if a landlord pays property insurance covering January through December 2027 in November 2026, that expense is deducted on the 2027 return.
The guide also covers capital cost allowance, a deduction for the depreciation of the building and certain other assets. Investors can claim capital cost allowance to reduce rental income, but doing so reduces the property's adjusted cost base, which can increase capital gains tax when the property is eventually sold. Many investors choose not to claim it in years when rental income is already low or negative.
Expenses that cannot be deducted include the principal portion of mortgage payments, capital expenses such as renovations that add lasting value (these are claimed through capital cost allowance instead), and personal-use portions of any expense if the property is used partly for personal purposes.
The Canada Revenue Agency guide is detailed and technical. Investors should read it in full or work with an accountant familiar with rental property to ensure accurate reporting.
What It Means for Buyers
Buyers considering a condo as a rental investment face a decision shaped by the purchase price, the rent the market will bear, borrowing costs, and all the ongoing expenses of ownership. A one-bedroom unit listed at $459,000 or a two-bedroom at $589,900 must generate enough rent to cover or come close to covering those costs, or the investor must be prepared to subsidize the property from other income while building equity over time.
Location within the region matters. A condo near transit, employment centres or universities may rent faster and command higher rent than a similar unit farther from those amenities. Time on market—currently a median of 32 days for condos—suggests that buyers have room to negotiate, particularly on units that have been listed longer.
Investors should also consider the opportunity cost. Money used for a down payment and ongoing negative cash flow could be deployed elsewhere, and the return on a rental property includes not just monthly rent but also long-term appreciation, mortgage paydown and tax treatment.
What It Means for Sellers
Sellers with investment condos will find a market that holds substantial inventory—6,983 units as of early October—and buyers who are evaluating properties with a sharp pencil. Investors compare asking prices against potential rent and carrying costs, so a unit priced in line with similar properties and presented in good condition will stand out.
Condos that are tenant-occupied can be sold with the tenant in place, which may appeal to an investor looking for immediate rental income, or vacant, which may appeal to a broader pool including owner-occupants. Sellers should understand the rules in their building regarding rentals and be prepared to provide that information to prospective buyers.
Units listed at the median of $560,000 compete with 6,983 other condos, so pricing, presentation and responsiveness to showings all matter. Sellers working with a licensed agent can access market data and a free home valuation to position their property competitively.
What It Means for Investors
Investors active in the Toronto and GTA market have a wide selection of condos to evaluate, with asking prices that span from well under $500,000 for smaller or older units to above $750,000 for larger or newer ones. The decision to buy hinges on whether the rent the unit can command, minus all expenses and a vacancy allowance, produces a return that justifies the capital and effort involved.
Borrowing costs at current levels—policy rate at 2.25%, with contract mortgage rates negotiated below the 6.09% posted figure—are lower than they were a year ago, which improves the math for leveraged purchases. At the same time, average rent growth has slowed to 2.2% year-over-year, so investors should not assume rapid rent increases will quickly close any gap between income and expenses.
Condominium rules, property taxes, insurance and strata fees vary widely by building and municipality. Investors should request a status certificate for any condo under consideration, review the reserve fund study, and confirm that the building's financial health and rental policies align with their plans.
Rental income must be reported to the Canada Revenue Agency, and all allowable expenses must be documented. Keeping detailed records throughout the year—receipts, invoices, bank statements, lease agreements—makes tax filing straightforward and ensures that every legitimate deduction is claimed.
Outlook
The supply of condos available for purchase in Toronto and the GTA remains substantial, and the pace of new listings suggests that inventory will stay elevated through the remainder of 2026. Borrowing costs have declined from their recent peak, but rent growth has moderated, so the balance between income and expenses for new rental purchases is tighter than it was in earlier years.
Investors who understand the full cost structure, have a realistic view of rent and vacancy, and are prepared to hold the property through market cycles will find opportunities in the current market. Those expecting immediate positive cash flow or rapid appreciation may need to adjust their expectations or wait for conditions to shift.
Renanza Realty works with buyers and investors across the Toronto and GTA market. Explore current listings, read our buyer guides, or request a free home valuation to understand what your property or a potential purchase is worth in today's market.
Sources
Renanza Realty — Analysis of active MLS® listings (CREA DDF®) — Toronto & the GTA, October 2026 Bank of Canada — Target for the overnight rate (policy interest rate), October 2026 Bank of Canada — Conventional mortgage, 5-year posted rate (major chartered banks), September 2026 Bank of Canada — Canadian Overnight Repo Rate Average (CORRA), October 2026 Canada Mortgage and Housing Corporation (via Statistics Canada) — CMHC average rents by centre (Table 34-10-0133-01), October 2025 Canada Revenue Agency — Rental income (guide T4036), 2025 edition
Data last checked: 2026-10-02
