Everyone wants the perfect house — big enough, great shape, ideal neighbourhood. Let’s be real: in Toronto, that doesn’t exist unless you’ve got unlimited money. And even then, you’ll probably be competing with five other offers for it.
Buying here is about trade-offs. Size, condition, location. Pick two. You’re not getting all three. Doesn’t matter if your budget is $700K or $7M — there’s always a compromise.
And that’s not a bad thing. If you land two out of three, you’re doing well. The key is knowing which two matter most to you, and making peace with the one you’re giving up.
Step One: Know Your Budget
Before you spend nights scrolling MLS, figure out your numbers. Not just what the bank says you qualify for, but what you’re actually comfortable with. There’s a big difference between “approved for” and “can sleep at night with.”
Here’s a rough breakdown for Toronto right now:
- Mortgage & Interest: $3,000
- Property Taxes: $400
- Utilities & Internet: $300
- Miscellaneous: $200
Total: $3,900/month
That’s before you fix a leaky roof, replace a furnace, or hand over $15K to a contractor who swears it’ll “only take three weeks.” (It won’t.) If you don’t leave room for those surprises, you’re setting yourself up for stress.
Size – Do You Really Need That Extra Bedroom?
Bigger isn’t always better. More square footage means higher costs, more cleaning, and more stuff you’ll buy just to fill empty space.
Ask yourself:
- Do you actually need four bedrooms, or is that HGTV talking?
- Can you live with a kitchen island instead of a formal dining room?
- Do you need a yard, or will a balcony and nearby park do?
Detached homes are the Toronto dream, but most buyers can’t afford them without giving up everything else. That’s why condos and townhouses make sense for a lot of people once they accept that reality.
Condition – The Fixer-Upper Fantasy
Plenty of buyers say they’re open to a fixer. Very few actually are. Renovations cost more than you expect, take longer than promised, and test every ounce of patience you’ve got.
Before jumping on a “good bones” listing, ask yourself:
- Can you live in the house during renovations?
- Do you have the cash left after closing to cover repairs?
- Do you want to deal with contractors ghosting you?
The smart move is often buying something solid that just needs cosmetic updates — paint, flooring, countertops. Not a house with foundation issues and a roof on its last legs.
Location – The Real Premium
This is the one thing you can’t change. And in Toronto, it’s the one thing that will always cost you.
- Downtown: smaller space, higher mortgage, but walkability, transit, and lifestyle.
- Scarborough, Etobicoke, North York, or the 905: more space for less money, but add commute time.
Be honest about your lifestyle:
- Can you handle a 45-minute commute, or do you need TTC/GO access?
- Do schools matter now, or not yet?
- Do you want nightlife outside your door, or peace and quiet?
- Is being near the lake worth the premium?
And remember: Toronto neighbourhoods flip fast. Leslieville, Junction Triangle, Regent Park — all unrecognizable compared to ten years ago. Always research what’s planned, not just what’s there now.
The Bottom Line
Buying in Toronto is about compromises. You can have size and condition, but sacrifice location. You can get location and condition, but give up space.
Pick your two: size, condition, location. That’s the formula.
The mistake people make is chasing the fantasy of “having it all” — and then overpaying, stretching their budget, or ending up miserable.
My job isn’t to sell you a dream. It’s to help you figure out which two matter most, find the right property, and make sure you don’t get burned in the process.