Toronto cash flow is tight. Most investors here are betting on rent, long-term growth and what the lot can become. That's fine, as long as you know which bet you're making.
First rentalHouse hackMultiplexBuying for your kids
More homes per lot
Toronto changedthe math.
4
Units citywide
Up to four units allowed as-of-right on residential lots across Toronto.
6
Units in 10 wards
Including Ward 4, Parkdale-High Park, where David lives. Toronto and East York wards plus Ward 23.
90%
Suite refinancing
Insured refinancing up to 90% of as-improved value to add suites, homes under $2M, up to four units, 30-year amortization.
3%
Vacant Home Tax
Of assessed value if a Toronto home sits empty. Every owner declares occupancy by April 30 each year.
As of October 2026. Subject to zoning, building code and permits. General information, not tax, legal or financial advice.
Underwriting
The math,straight.
Newer units first occupied after November 15, 2018 aren't under the rent increase guideline, so rents can reset. Condo fees and carrying costs still eat into returns, so we look at the whole picture.
Pick the wrong project, floor plan or contract terms and the math never recovers.
You asked
Goodquestions.
What's a good cap rate in Toronto?
Lower than most places, which is why investors here play for appreciation and density, not just yield. I show you the real numbers on each property instead of a rule of thumb.
Can I add units to my house?
Very possibly. Up to four units citywide and up to six in some wards, subject to zoning, code and permits. We check your lot before you spend a dollar.
Can I borrow to build a suite?
Yes. Insured refinancing can go to 90% of as-improved value for homes under $2M with up to four units, over 30 years.
Is pre-construction worth it?
It can be. Deposits are usually paid in instalments over a year or two, which works like forced savings. The risks are the project, the builder, the floor plan, delays and the contract. You can cancel a new condo purchase within 10 days of getting the signed agreement and disclosure statement, so we use those days to get your lawyer through it.
Can I sell a pre-construction condo before it closes?
Usually, through an assignment, if the builder allows it. Expect fees and conditions in the contract, and tax rules on any profit. Check the assignment clause before you sign.
Can foreign investors buy here?
Until January 1, 2027, federal rules stop most non-Canadians from buying residential property, with some exceptions. Eligible foreign buyers also pay 25% Ontario and 10% Toronto speculation taxes.
Should I buy a condo to rent out?
It can work, especially newer units outside rent control, but fees and carrying costs matter. We compare it to a house hack or multiplex first.
Can I use the equity in my home?
Often. A refinance or a home equity line can fund a down payment on a rental. Your lender sets the limits; I'll help you weigh what it buys you.
I want to buy for my kids. How does that work?
Co-ownership, gifting the down payment and other structures. Talk to your lawyer and accountant; I'll find the right place.
First place, the family home, more space, or just figuring out what's next. You don't need it all mapped out. Tell me what's on your mind and we'll start there.
Come behindthe scenes.
Open houses, new listings, neighbourhood finds and the odd round of golf.
Follow @davidspeedie Preview photos until the live feed is connected