Buy a GTA property that pays you back.
Cash flow, basement suites, multiplex conversions and long-term growth. Tell me your plan and I’ll show you the numbers.
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See what rent a property needs to break even
| Mortgage payment (25-yr amortization) | |
| Property tax | |
| Insurance (estimate) | $175 |
| Maintenance + vacancy (8% of rent) | |
| Monthly rent to break even |
Illustrative only, before income tax. Insured mortgages need under 20% down only below $1.5M; investment properties usually need 20%. Your plan uses real rents and costs for the exact property.
Legal basement apartments: rules, costs and how to verify Read →Common questions about investment property
How much down payment does a rental property need?
If you will not live in the property, lenders usually need at least 20% down. If you live in one unit of a two-to-four unit home, insured financing with a smaller down payment may be possible.
Can I add a basement or garden suite?
Ontario allows up to three units on most urban residential lots, but each city has its own rules and the units must meet the Building and Fire Codes. In Brampton, for example, second units, third units and garden suites must be registered with the city to be legal.
Are rents controlled in Ontario?
Units first occupied for residential purposes after November 15, 2018 are exempt from the annual rent increase guideline. Older units are subject to it. Either way, the Residential Tenancies Act governs the tenancy.
What return should I expect?
At today’s prices and rates, many GTA rentals do not cash-flow on rent alone; the break-even calculator above shows why. Returns usually come from a combination of rent, mortgage paydown, a legal additional unit and long-term appreciation.
Where do investors buy in the GTA?
It depends on your budget and strategy. Durham and Brampton often have lower entry prices, while legal second units are most common in Brampton and Markham.
Guides: How to start investing in Ontario real estate · Brampton legal basement guide · Legal basement apartments · Power of sale homes
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