How Much Does a Three-Bedroom Home in Toronto Cost?

Living space, no doubt, is a premium – and a necessity for a growing family. In Toronto, the cost of a three-bedroom home is not exactly cheap compared to other cities in Ontario. Nevertheless, it may be worth considering as an investment due to the sustained rising prices of the real estate housing market.

There are only three things to think about as you look at 3-bedroom houses for sale in the city of Toronto:

1. Do you need three bedrooms?

2. Is the location a necessity?

3. Can you afford the downpayment, mortgage, and other fees?

First, the size of the property affects the price. 3-bedroom home is more costly than a 2-bedroom. For couples that are only starting a family, a 3-bedroom house may seem lavish but also practical in the long run. It is better to have space instead of being stuck in a small home as the household grows.

A property’s location and proximity to workplaces, schools, hospitals and others affect the price. The more ideal it is, the more costly it is. For most families, compromising is necessary as you need to strike a balance between the suitability of a location and the price of the house.

Lastly, the most critical consideration of all is your ability to pay. The listing price is only a starter. There may be other buyers in a hot Toronto real estate climate, leading to multiple offers and bidding wars. Apart from that, there are also additional costs to consider.

The Cost of Houses for Sale in Toronto, Ontario

Even though some economists warned of a possible bubble in Toronto real estate, there seems to be no slowdown. According to the Toronto Regional Real Estate Board (TRREB), the average price of homes sold in Toronto is $1,097,565 in March 2021. This figure is 21.6% higher than the same month of the previous year, in which the average cost of homes sold was $902,787. To date (January to March 2021), the average price is $1,053,585 (“TRREB Market Watch March 2021”).

Table 1. Summary of the Average Prices of Homes Sold in Toronto (All Home Types)

	2020	2021
January	$838,087	$966,735
February	$910,024	$1,045,435
March	$902,787	$1,097,565

The rapid acceleration is not only limited to prices. The number of homes sold in March almost doubled up compared to the previous year, increasing by 97% from 7,945 to 15,652 units.

Table 2. Summary of Homes Sold in Toronto (All Home Types)

	2020	2021
January	4,546	6,898
February	7,192	10,953
March	7,945	15,652

As stated earlier, you need to strike a balance between location and cost as a buyer. For one, the price in each area in the GTA varies from the others. Availability is also an issue. Looking at the listings, it is apparent that many sellers opt to underprice their properties. It is a common tactic used to encourage multiple offers, which drives up prices. In some cases, it may even lead to bidding wars.

Table 3. Summary of Homes Sold and Average Prices in the Greater Toronto Area (All Home Types)

	# Homes Sold	Average Price
Halton Region	1,647	$1,245,062
Peel Region	3,185	$1,061,015
City of Toronto	5,130	$1,083,322
York Region	2,911	$1,265,481
Durham Region	2,077	$901,322
Dufferin County	114	$808,540
Simcoe County	588	$924,585
	15,652	$1,097,565

For sellers, multiple offers and bidding wars are especially advantageous as they could get more money than originally intended. As a buyer, the experience can be frustrating. You have to compete with tens (or even hundreds) of other buyers and end up paying a higher price.

Cost of Buying a House in the GTA

In Canada, buying a house comes with costs other than the agreed purchase price. One thing going on for buyers is that interest rates on loans are at a historical low. However, buyers also need to qualify under new lending guidelines. Since 2018, Canadians applying for a mortgage need to undergo the OSFI Mortgage Stress Test (“Residential Mortgage Underwriting Practices and Procedures Guideline (B-20)”). It includes buyers who pay a 20% down payment.

You are responsible for paying the Land Transfer Tax (LTT). Furthermore, in Toronto, you are also going to pay provincial LTT and municipal LTT. As a first-time buyer, though, you are eligible for a rebate on the LTT.

Hiring a real estate lawyer is beneficial as you can have someone taking care of and ensuring all the legal papers are in order. It can cost up to $2,000, and may or may not include the cost of title registration ($400).

There are plenty of other costs that you may incur – insurance, home inspection, and others. Most of these are optional. At any rate, the following estimates are to give you an idea of how much it costs to buy a 3-bedroom house in the GTA.

The Cost of a 3-bedroom House in Toronto

For estimate purposes, the mortgage computations used here are:

Downpayment: 20%
Mortgage Type: 5-year fixed
Mortgage Rate: 1.68% (CanWise Financial as of April 20, 2021)
Amortization Period: 25 years

Price of 3-bedroom House in The Annex, Toronto

	Cheap	Expensive
Listing Price	$1,199,000	$5,500,000
Downpayment	$239,800	$1,100,000
Total Mortgage Required	$959,200	$4,400,000
Monthly Mortgage Payment	$3,915	$17,960
Land Transfer Tax	$40,910	$247,950
First-time Buyer Rebate	$8,475	$8,475

Price of 3-bedroom House in The Beaches, Toronto

	Cheap	Expensive
Listing Price	$899,000	$2,179,000
Downpayment	$179,800	$435,800
Total Mortgage Required	$719,200	$1,743,200
Monthly Mortgage Payment	$2,936	$7,115
Land Transfer Tax	$28,910	$81,900
First-time Buyer Rebate	$8,475	$8,475

Price of 3-bedroom House in Bellwoods, Toronto

	Cheap	Expensive
Listing Price	$998,900	$2,698,000
Downpayment	$199,780	$539,600
Total Mortgage Required	$799,120	$2,158,400
Monthly Mortgage Payment	$3,262	$8,810
Land Transfer Tax	$32,906	$107,850
First-time Buyer Rebate	$8,475	$8,475

Price of 3-bedroom House in The Danforth, Toronto

	Cheap	Expensive
Listing Price	$750,000	$2,999,000
Downpayment	$150,000	$599,800
Total Mortgage Required	$600,000	$2,399,200
Monthly Mortgage Payment	$2,449	$9,793
Land Transfer Tax	$22,950	$122,900
First-time Buyer Rebate	$8,475	$8,475

Price of 3-bedroom House in Leslieville, Toronto

	Cheap	Expensive
Listing Price	$889,000	$2,999,000
Downpayment	$177,800	$599,800
Total Mortgage Required	$711,200	$2,399,200
Monthly Mortgage Payment	$2,903	$9,793
Land Transfer Tax	$28,510	$122,900
First-time Buyer Rebate	$8,475	$8,475

Price of 3-bedroom House in Parkdale, Toronto

	Cheap	Expensive
Listing Price	$949,000	$2,650,000
Downpayment	$189,800	$530,000
Total Mortgage Required	$759,200	$2,120,000
Monthly Mortgage Payment	$3,099	$8,653
Land Transfer Tax	$30,910	$105,450
First-time Buyer Rebate	$8,475	$8,475

Price of 3-bedroom House in Rosedale, Toronto

	Cheap	Expensive
Listing Price	$999,000	$9,760,000
Downpayment	$199,800	$1,952,000
Total Mortgage Required	$799,200	$7,808,000
Monthly Mortgage Payment	$3,262	$31,870
Land Transfer Tax	$32,910	$460,950
First-time Buyer Rebate	$8,475	$8,475

Price of 3-bedroom House in Upper Beaches, Toronto

	Cheap	Expensive
Listing Price	$899,000	$2,179,000
Downpayment	$179,800	$435,800
Total Mortgage Required	$719,200	$1,743,200
Monthly Mortgage Payment	$2,936	$7,115
Land Transfer Tax	$28,910	$81,900
First-time Buyer Rebate	$8,475	$8,475

Three Bedroom Home Price Fits Budget of $800,000 and Up

Having decided that, indeed, you need a 3-bedroom home, scout the neighbourhoods of Toronto. Although the average home price is currently at $1,097,565, it encompasses all types of homes, including detached and semi-detached houses, apartments, and condo units. On cost, it ranges from $800,000 to nearly $10,000,000.

One thing you can do to make house hunting easier is to work with an experienced realtor in Toronto. Be mindful when choosing a real estate brokerages. They are familiar with the property landscape and can help you find an ideal home. The reputable ones will make sure to guide you accordingly, focusing on your needs instead of their desire to close sales.

Citations

“TRREB Market Watch March 2021.” Toronto Regional Real Estate Board, 5 Apr. 2021.

“Residential Mortgage Underwriting Practices and Procedures Guideline (B-20).” Office of the Superintendent of Financial Institutions, Government of Canada, 18 Feb. 2021, www.osfi-bsif.gc.ca/Eng/fi-if/rg-ro/gdn-ort/gl-ld/Pages/b20-nfo.aspx. Accessed 20 Apr. 2021.