North York Condo Investment: The Rules, Taxes and Figures to Know

If you buy a North York condo to rent out, you can check a set of rules before you make an offer. They include Ontario’s rent increase guideline, the City of Toronto’s Vacant Home Tax and short-term rental by-law and two land transfer taxes. Buyers who are not Canadian citizens or permanent residents also face a provincial tax and a federal purchase ban. We set those rules beside the rent and sale figures the Toronto Regional Real Estate Board (TRREB) has recorded by district.

This is general information, not investment advice. We make no claim about returns, yields, price growth or cash flow and no forecast. Ask an accountant about the tax treatment of a rental property. Ask the Landlord and Tenant Board or a lawyer about tenancy rules. Ask a mortgage professional about financing.

What you will get from this page

We report what TRREB recorded for condo rents and sale prices in the second quarter of 2026. We state the rules that apply to an owner who rents out a condo in the City of Toronto, each from the agency that sets it. We list what to read and whom to ask before buying.

We cannot tell you whether to buy, what a unit could earn or where prices or rents are heading. Past figures record that period and nothing more.

Condo rents and sale prices by district, Q2 2026

TRREB publishes no figure for North York as a whole. It reports by district. The table puts two of its reports side by side for the second quarter of 2026. They are condo apartment sales from the Condo Market Report and condo apartment leases from the Rental Market Report. The number of leases is shown in brackets beside each average rent.

TRREB district	Condo sales	Average sale price	Leases, all sizes	One-bedroom average rent	Two-bedroom average rent
Toronto C04	45	$926,411	75	$2,330 (43)	$3,196 (26)
Toronto C06	49	$509,204	158	$2,132 (78)	$2,496 (70)
Toronto C07	101	$619,683	408	$2,232 (193)	$2,902 (185)
Toronto C11	49	$595,725	123	$2,178 (59)	$2,774 (50)
Toronto C12	18	$1,603,889	20	$2,759 (8)	$4,123 (11)
Toronto C13	75	$611,065	470	$2,077 (277)	$2,634 (176)
Toronto C14	174	$597,444	738	$2,273 (419)	$2,954 (290)
Toronto C15	180	$588,484	986	$2,224 (595)	$2,840 (309)
Toronto W04	56	$493,441	137	$2,126 (82)	$2,539 (44)
Toronto W05	46	$467,695	146	$2,171 (91)	$2,663 (46)
City of Toronto	3,174	$667,916	15,388	$2,316 (8,847)	$3,154 (4,964)

Here is what each district holds. C14 holds Willowdale East and Newtonbrook East. C07 holds Lansing-Westgate, Willowdale West, Newtonbrook West and Westminster-Branson. C15 holds Bayview Village, Henry Farm, Don Valley Village, Hillcrest Village, Pleasant View and Bayview Woods-Steeles. C13 holds Banbury-Don Mills, Parkwoods-Donalda and Victoria Village. C06 holds Bathurst Manor and Clanton Park. C12 holds Bridle Path-Sunnybrook-York Mills and St. Andrew-Windfields.

Four districts reach past the former North York boundary. C04 takes in Forest Hill North and Lawrence Park South. C11 includes Leaside and Thorncliffe Park. W04 includes Mount Dennis and Weston. W05 includes Humbermede. Their figures cover those communities too.

Why we do not work out a yield

The two columns cover different units. The average sale price takes in every condo apartment sold in the district, of every size. The rents are split by bedroom count. Dividing one by the other would compare different homes. The sample sizes differ widely too. C12 has 8 one-bedroom leases and 18 sales, while C15 has 595 one-bedroom leases and 180 sales. Neither column includes condo fees, property tax, financing or time without a tenant.

To assess one unit, use that unit’s own numbers. You need its price, its common expenses from the status certificate, its property tax bill and recent leases for the same size in the same building or community.

The whole TRREB market that quarter

Across all TRREB areas there were 21,251 condo apartment leases in the second quarter of 2026, up 4.2% from 20,396 a year earlier. There were 27,844 units listed for rent, up 2.9%. The average one-bedroom rent was $2,273, down 2.3%. The average two-bedroom rent was $3,013, down 1.7%.

On the sale side there were 4,783 condo apartment sales, up 8.8% from 4,395. The average price was $634,972, down 7.5% from $686,387. Active listings at the end of the quarter stood at 8,061, down 15.4%.

That is one quarter’s record. Our North York condo prices page also has district figures for sale prices.

Rent control and the 2018 exemption

Ontario sets a rent increase guideline each year. It is 2.1% for 2026 and 1.9% for 2027.

Newer condos are exempt. Ontario’s page says new buildings, additions to existing buildings and most new basement apartments first occupied for residential purposes after November 15, 2018 are exempt from rent control. A condo unit first occupied after that date falls outside the guideline cap.

The same page says an exempt unit still has two rules. Rent can be raised only once 12 months have passed since the last increase or since the tenancy began. The landlord must give at least 90 days’ written notice.

Before buying, find out when the unit was first occupied. For anything beyond these points, including ending a tenancy, check the rules with the Landlord and Tenant Board or a lawyer.

The Vacant Home Tax

The City of Toronto charges a Vacant Home Tax of 3% of a property’s Current Value Assessment. That rate has applied since the 2024 taxation year. A home counts as vacant if it was vacant for six months or more during the taxation year.

Every residential owner must declare the occupancy status of the property every year, even if they live there or qualify for an exemption. A property is deemed vacant if the owner does not declare by the deadline. A false declaration carries a fine of up to $10,000 plus the tax.

The City’s page refers to an April 30 deadline and says the declaration period for 2025 has closed. It gives no date yet for declaring the 2026 taxation year, so check the City’s page.

To put a number on it, 3% of an assessment of $692,140, the figure the City uses in its property tax example, is $20,764.

Short-term rentals in Toronto

The City defines a short-term rental as all or part of a dwelling unit rented for less than 28 consecutive days in exchange for payment. It permits short-term rentals only in principal residences.

That means a condo that is not the owner’s principal residence cannot lawfully be run as a short-term rental in Toronto. If you rent out the home you live in, the City’s rules include:

• registration with the City before listing, with a non-refundable fee of $390 that is subject to annual increase
• a maximum of 180 nights per calendar year for an entire-home rental
• up to three bedrooms and no night limit for a partial-unit rental
• collecting and remitting a 6% Municipal Accommodation Tax

The City also tells condo residents to check that the condominium’s by-laws and rules allow short-term rentals. Its page gives sample fines of $1,000 for failing to register and $700 for renting an entire unit beyond 180 nights.

If you are a non-resident buyer

Ontario Non-Resident Speculation Tax. The rate has been 25% since October 25, 2022. It applies to residential property anywhere in Ontario bought by foreign nationals, foreign corporations and taxable trustees, where the land contains one to six single family residences. Condominium units are included and so are condominium parking and storage units as of March 27, 2024. A rebate is available where a foreign national becomes a permanent resident within four years. On a $600,000 purchase 25% is $150,000.

The City of Toronto’s land transfer tax page also shows a Municipal Non-Resident Speculation Tax of 10% of the purchase amount, with its own rebate. On $600,000 that is $60,000.

Federal purchase ban. The Prohibition on the Purchase of Residential Property by Non-Canadians Act took effect on January 1, 2023 and was extended to January 1, 2027. It applies to residential property in census metropolitan areas and census agglomerations. The penalty is a fine of up to $10,000 and a court may order the property sold. Exceptions include certain temporary residents, refugee claimants and purchases with a Canadian spouse or common-law partner.

That end date is close. We give it as published and say nothing about what follows it. Ask a lawyer for the position on the day you plan to sign.

Buying pre-construction to rent out

HST and rebates

A new condo bought from a builder carries HST. Several rebate programs reduce it for buyers who qualify. Each has conditions and several turn on who lives in the unit.

• The federal new housing rebate is 36% of the federal part of the HST to a maximum of $6,300. It is paid in full up to a price of $350,000 and is phased out to nil at $450,000.
• The Ontario new housing rebate is 75% of the provincial part of the HST to a maximum of $24,000, with no price ceiling. The home must be the primary place of residence of the buyer or a relation.
• The first-time home buyers’ GST/HST rebate is limited to first-time buyers who meet the Canada Revenue Agency’s conditions.
• The Canada Revenue Agency describes an Ontario Enhanced New Housing Rebate that, together with the Ontario new housing rebate, gives combined relief of up to $80,000 of the provincial part of the HST on a new home valued up to $1,850,000, where the agreement with the builder is entered into between April 1, 2026 and March 31, 2027. It is not limited to first-time buyers.

Two cautions. Ontario’s 2026 budget page words the enhanced relief as a proposal while the Canada Revenue Agency page describes it as operating, so read the agency’s page the day you sign. Our sources did not confirm whether a buyer who intends to rent the unit out qualifies for the enhanced rebate. Leave any rebate out of your budget until an accountant has confirmed it.

Assignments

In an assignment you sell your purchase agreement to another buyer before closing. The Canada Revenue Agency states that, effective May 7, 2022, all assignment sales of newly constructed or substantially renovated residential housing are taxable for GST/HST. The person assigning the agreement is generally responsible for collecting and remitting the tax. The part of the payment that reimburses a deposit paid to the builder is excluded from the taxable amount where the assignment agreement says so in writing. Only one new housing rebate application can be made for a home.

Your contract with the builder decides whether you may assign at all and on what terms. We found no general right to assign in our sources.

Deposits, cooling off and interim occupancy

If you buy a pre-construction condo from a developer, you have a 10-day cooling-off period in which you may rescind the agreement. Tarion’s deposit protection for a condominium unit is up to $20,000. During interim occupancy the fee cannot exceed the total of monthly interest on the unpaid balance of the price, estimated monthly municipal taxes for the unit and projected monthly common expenses.

The full process is in the North York pre-construction condo guide.

Land transfer taxes

In the City of Toronto you pay Ontario land transfer tax and the Toronto municipal land transfer tax. Up to $2,000,000 both use the same brackets: 0.5% on the first $55,000, 1.0% from $55,000 to $250,000, 1.5% from $250,000 to $400,000 and 2.0% above $400,000. The first three brackets come to $4,475.

Purchase price	Ontario tax	Toronto tax	Both
$500,000	$6,475	$6,475	$12,950
$600,000	$8,475	$8,475	$16,950
$800,000	$12,475	$12,475	$24,950

Toronto also charges an administration fee of $102.56 plus HST per transaction.

These figures assume no first-time buyer relief. The Ontario refund and the Toronto rebate both require that you have never owned a home anywhere in the world and occupy the home as a principal residence within nine months. Do not count on either for a unit you plan to rent out. Our land transfer tax calculator works out other prices.

Property tax

The City of Toronto’s 2026 residential rate is 0.767311% of assessed value, made up of the City rate, the education rate and the City Building Fund. The City’s example is an assessment of $692,140, which gives a bill of $5,311. The rate applies to the assessed value on the tax bill, which can differ from the purchase price. Ask for the unit’s current bill.

What a landlord reads in the status certificate

The Condominium Authority of Ontario says anyone can request a status certificate. The condominium corporation can charge up to $100 including taxes and must provide it within 10 days. If you plan to rent the unit out, read four parts closely.

• The declaration, by-laws and rules. Read them for anything that affects renting the unit. The City says short-term rentals must be allowed by a condominium’s by-laws and rules.
• Common expenses for the unit and any arrears. You pay this amount every month whether or not a tenant is in place.
• Common expense increases and special assessments. The certificate reports them.
• The reserve fund and the most recent reserve fund study. The reserve fund pays for major repairs and replacements of common elements. A study is required at least every three years.

The certificate also has the budget, the last audited financial statements, the insurance certificate and outstanding judgments and litigation. Have a lawyer review it. Our North York condo buying guide covers the rest of a resale purchase.

Step by step, before you buy to rent

1. Talk to an accountant about how rent and a later sale are taxed in your situation.
2. Talk to a mortgage professional about the down payment and terms a lender requires for a rental property.
3. Find out when the unit was first occupied. That tells you whether the rent increase guideline applies to it.
4. Look up recorded rents and sale prices for the district and note the number of leases and sales behind each figure.
5. Request the status certificate and have a lawyer review it, including the rules on renting.
6. Budget for both land transfer taxes with no first-time buyer relief.
7. Get the current property tax bill and the common expenses for the unit.
8. Plan for the yearly Vacant Home Tax declaration and for months without a tenant.
9. If you are not a Canadian citizen or permanent resident, have a lawyer confirm how the purchase ban and the Non-Resident Speculation Tax apply.
10. For a pre-construction unit, read the assignment terms and confirm every HST rebate before relying on it.

Ask about a unit or an area

Ask us anything about North York condos and we can book a showing. Reach us through the contact page. Current listings are on the condo search page. Our area guides for Yonge and Sheppard, Willowdale and North York Centre and Bayview Village name the TRREB communities each one covers.