Why Buying in Toronto Doesn't Make Sense Right Now

If you're eyeing a two-bedroom condo in downtown Toronto, you might want to pump the brakes. Sure, that $700,000 price tag seems standard, but even with a $70,000 down payment, the math simply doesn’t add up.

How Interest Rates Are Shaping This Decision

High interest rates have made homeownership in Toronto increasingly unaffordable. A $700,000 condo may have been a solid investment when rates were low, but with today's higher rates, mortgage payments have doubled for many buyers. That’s why a better strategy is to rent in Toronto while investing in Niagara, where property prices are lower, and rental yields are higher.

The Rent-to-Invest Strategy in Action

Let’s compare two possible scenarios:

Scenario 1: Rent in Toronto & Invest in Niagara

• Rent a Toronto condo for: $2,800/month

• Buy a Niagara property for: $450,000

  • 10% down = $45,000

  • Mortgage (at 4%) = ~$1,952 /month

  • Property Tax & maintenance = $200/month

  • Rental income = $2,500/month

  • Rental Cash Flow = +$348/month

  • Net Monthly Cost = -$2,452/month

This setup allows you to live affordably in Toronto while earning passive income from a Niagara investment property.

Scenario 2: Just Buy in Toronto

• Buy a Toronto condo for: $700,000

  • 10% down = $70,000

  • Mortgage (at 4%) = ~$3,036/month

  • Property tax & maintenance = ~$700/month

  • Net Monthly Cost = -$3,736/month

  Final Take: A Smarter Strategy

  Rather than stretching your budget for an overpriced Toronto mortgage, renting in the city while investing in a high-yield Niagara property offers the best of both worlds. You keep your monthly costs lower while your investment property generates income and builds equity.