Moving to Ontario as a new immigrant usually comes with one immediate financial question: how much will it actually cost to rent a decent apartment in Toronto?
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The answer depends heavily on where you live.
A modern condo near downtown Toronto may consume a large part of a newcomer’s starting salary, while an older one-bedroom apartment, basement suite or shared property in Scarborough, Etobicoke, North York or York could reduce housing costs by hundreds of dollars every month.
And there is some encouraging news for people searching in 2026.
Toronto’s rental market has loosened compared with the extremely tight years before it. CMHC’s 2025 Rental Market Report found the Greater Toronto Area’s purpose-built rental vacancy rate climbed to 3.0% in October 2025, up from 2.2% a year earlier, the highest level since 2021. Rentals.ca’s July 2026 National Rent Report also found Toronto had the best annual rent performance of Canada’s six largest markets, with asking rents down just 0.8% year-over-year, even as they ticked up 1.5% from June to July as the market hit its seasonal peak.
That gives new immigrants something valuable: more choice, and slightly more negotiating power than Toronto renters have had in years.
Toronto has never been a cheap rental city, and no immigration guide should pretend otherwise. It remains one of Canada’s most expensive rental markets.
However, it can still offer considerably more options for renters who are willing to compare boroughs, apartment types and move-in incentives, and the citywide numbers are noticeably softer than they were a few years ago.
Recent Rentals.ca data listed approximately:
$2,188 Average one-bedroom rent
$2,474 Average two-bedroom rent
3.0% GTA purpose-built vacancy rate (CMHC, Oct. 2025)
These figures were reported for March 2026 and should be treated as a market guide rather than a guaranteed price for every available apartment. Actual rents vary enormously by borough, building age, property type and included utilities. Toronto’s cheapest listed neighbourhood and its most expensive can differ by well over $1,000 a month for the same unit type.
The direction of the market is also worth watching. Rentals.ca reported that Toronto asking rents were down just 0.8% year-over-year in July 2026, the smallest decline among Canada’s six largest markets, while three-bedroom rents actually grew 3.9% annually, a sign the market is stabilizing rather than continuing to soften across the board.
For newcomers, this means it can pay to compare several properties across boroughs rather than rushing to secure the first available apartment.
You do not have to live downtown or in a new luxury condo tower to enjoy the city.
Several established boroughs regularly have apartments, basement suites and older rental buildings that can be considerably more affordable than the Toronto average, often for a fraction of downtown condo rents.
Scarborough remains one of the first places newcomers on a limited housing budget check.
Recent market analysis has put one-bedroom apartments near Kennedy Station or Warden Avenue at roughly $1,700 to $2,000 a month, well below the downtown core. Family-friendly pockets such as West Hill, near the University of Toronto Scarborough campus, offer larger lots and houses at a discount to the citywide average, though the commute downtown can run 40 to 60 minutes by transit.
Typical option: Older apartments, basement suites and townhouses near the RT and GO lines Good for: Newcomers and families prioritising affordability and space over a downtown commute
Do not judge the area only by the lowest advertised rent. Check TTC and GO Transit access, the condition of the building, utilities and your commute before signing.
Etobicoke can be a genuinely two-tier market, and that’s exactly why newcomers should search it carefully rather than skip it.
North Etobicoke pockets including Rexdale-Kipling, Mount Olive-Silverstone-Jamestown, Smithfield, West Humber-Clairville and Thistletown-Beaumonde Heights consistently show some of the lowest costs in the entire city, including basement apartments and rooms for rent, while waterfront buildings near Humber Bay Shores can push a one-bedroom past $2,800. Along the Bloor-Danforth subway line, two-bedroom units have listed around $2,200 to $2,500.
Typical option: Basement apartments, older walk-ups, rooms for rent Good for: Newcomers who want subway or bus access without downtown pricing
A rental with heat and water included can sometimes be better value than a cheaper unit where most utilities are extra.
North York, home to roughly 670,000 residents, is one of Toronto’s most diverse and rental-heavy boroughs, and it has an unusually wide price range.
Recent listings have ranged from private basement studios around $990 to $1,250 near Bathurst and Lawrence, up to renovated one-bedroom condos closer to $1,800 to $2,100 near subway stations such as Sheppard-Yonge and Finch. Students and newcomers can often find basement apartments and room rentals near local colleges at the lower end of that range.
Typical option: Basement apartments, room rentals, older high-rise apartments Good for: Budget-conscious renters who want strong subway access
For newcomers without a car, check the subway or bus route to your workplace before committing to any property. North York’s transit access varies a lot block to block.
The York district, in Toronto’s west end, is worth comparing for renters who want lower rents while staying inside the city.
Recent listings in the Trethewey and Brookhaven area have advertised one-bedroom units around $1,600 a month, with larger two-bedroom units in the same area listed closer to $2,250.
Typical option: Older apartment buildings and basement units Good for: Newcomers who want proximity to the UP Express and Eglinton Crosstown LRT
Leslieville has a reputation as a trendier east-end neighbourhood, but its basement apartment market can still undercut the citywide average considerably.
Recent listings showed a one-bedroom basement apartment near Carlaw and Lake Shore around $1,600 a month plus a share of utilities, well below Toronto’s $2,188 average one-bedroom rent.
Typical option: Basement apartments with private entrances Good for: Singles and couples who want east-end access without downtown-core pricing
The best deal may not always have the lowest rent. Transit access and included utilities can change your real monthly expenses considerably.
Several major Canadian banks and mortgage-insurance companies provide financing options that may help newcomers purchase a home. Eligibility, interest rates, down-payment requirements, and approval criteria vary by lender.
RBC offers banking and mortgage services for newcomers, helping eligible immigrants explore home financing based on their income, credit history, and residency status.
TD provides mortgage and banking products for newcomers. Applicants can discuss available financing options even if they have limited Canadian credit history.
CIBC offers mortgage solutions and newcomer banking services designed to help eligible immigrants establish their finances and work toward homeownership.
BMO provides mortgage financing and newcomer banking services. Qualified applicants may explore different home-loan options depending on their financial circumstances.
Scotiabank offers banking and mortgage products for newcomers, making it another lender immigrants can consider when comparing home-financing options.
CMHC provides mortgage insurance and housing resources for eligible newcomers. Its programs can help qualified buyers access home financing with a smaller down payment.
Canada Guaranty provides mortgage insurance that can support eligible homebuyers who meet the lender’s requirements, including borrowers who may not have a large down payment.
Sagen is another major Canadian mortgage insurer. Its insurance products can help eligible borrowers obtain mortgage financing through participating lenders.
Tip: Immigrants should compare several lenders rather than choosing the first mortgage offer. Consider the interest rate, down payment, mortgage terms, insurance costs, and total borrowing cost before making a decision.
| Company/Organization | Best angle for immigrants |
|---|---|
| RBC | Newcomer banking & mortgages |
| TD | Mortgage financing & newcomer banking |
| CIBC | Newcomer mortgage options |
| BMO | Home financing & newcomer services |
| Scotiabank | Newcomer banking & mortgages |
| CMHC | Mortgage insurance & newcomer housing information |
| Canada Guaranty | Mortgage insurance |
| Sagen | Mortgage insurance |
CMHC itself provides newcomer-specific housing resources covering both renting and buying, including mortgage planning and homebuyer information.
New immigrants do not all need the same type of housing.
Choosing the right property type can have just as much impact on your budget as choosing the right neighbourhood.
A private one-bedroom apartment gives you more independence, but usually costs considerably more than renting a room.
Rentals.ca reported an average Toronto one-bedroom rent of approximately $2,188 per month in March 2026.
This can work well for:
Two-bedroom apartments can work well for families, but they can also be shared by two working adults who want to reduce individual housing costs.
The Toronto average was approximately $2,474 for a two-bedroom unit in March 2026, though CMHC’s purpose-built rental survey (which includes older, non-condo buildings) put the average closer to $2,045 as of October 2025, a reminder that older purpose-built rental buildings are often meaningfully cheaper than newer condo listings.
Splitting a suitable two-bedroom apartment may sometimes cost less per person than each renter taking a separate one-bedroom unit.
Basement apartments are extremely common across Toronto’s residential neighbourhoods and are often the single biggest lever a newcomer has to cut housing costs, sometimes by $500 to $800 a month compared with an above-grade unit in the same area.
When viewing one, ask about:
A cheap monthly rent can quickly become less attractive if you are responsible for substantial additional utility costs.
For a newcomer arriving without Canadian employment history or credit history, renting a room can be a practical temporary strategy.
Some rooms and shared properties across the GTA are advertised well below $1,500 a month, although price, quality and availability vary considerably. Rentals.ca and Kijiji both maintain listings specifically for rooms and shared accommodation across Toronto’s boroughs.
Living in shared accommodation for six months can give you time to find employment, understand the city, build savings and prepare for your own apartment.
Getting approved for your first Canadian apartment can sometimes be harder than finding the apartment itself.
The biggest challenge is often not your immigration status.
It is your lack of Canadian financial history.
A landlord or property management company may ask for:
Requirements vary between landlords and properties.
If you have only recently arrived and do not yet have a Canadian credit history, prepare other evidence showing that you can comfortably afford the rent.
Useful documents may include an employment contract, proof of savings or previous rental references.
This is one of the biggest concerns for new immigrants, and it’s worth tackling early, before you even start apartment hunting.
A Canadian credit score helps landlords assess how you have previously handled financial obligations in Canada. A person who arrived only weeks ago obviously may not have much Canadian credit history yet.
That does not mean you cannot find accommodation.
Start building your Canadian financial profile early. Many banks in Canada now offer newcomer banking packages built specifically for new permanent residents and work-permit holders, often including a no-annual-fee chequing account and a starter or secured credit card for newcomers with no credit history. Using one of these cards responsibly, paying it off in full every month, and keeping a high-interest savings account can meaningfully strengthen your credit profile within just a few months.
More importantly, when applying for an apartment, have your income and financial documents organised.
A landlord may be much more comfortable with an applicant who can immediately provide:
If your application is repeatedly turned down for lack of credit history, some newcomers also look into no-credit-check apartments or landlords who accept a larger last month’s rent deposit as reassurance, but always confirm any such arrangement is legal under Ontario’s Residential Tenancies Act before agreeing to it (see below).
Avoid submitting altered or misleading financial documents. Rental fraud can create much bigger problems than losing one apartment application.
This is where Ontario rules genuinely surprise a lot of newcomers, so read this section carefully before you pay anyone a deposit.
Unlike many other provinces, Ontario does not allow landlords to charge a security or damage deposit at all. Under the Residential Tenancies Act, 2006, the only deposit a landlord may legally collect is a last month’s rent (LMR) deposit, equal to no more than one month’s rent, plus (in limited cases) a refundable key deposit equal to the actual replacement cost of the keys.
For example:
Apartment rent: $1,800 → Maximum last month’s rent deposit: $1,800 Apartment rent: $2,400 → Maximum last month’s rent deposit: $2,400
That deposit must be applied only to your final month of rent. It cannot legally be used to cover damage, cleaning or unpaid utilities. If a landlord asks for a separate “damage deposit,” “cleaning deposit” or “pet deposit” on top of first and last month’s rent, that request does not comply with Ontario law, and you can raise this with the Landlord and Tenant Board (LTB) if needed.
Landlords must also pay annual interest on your last month’s rent deposit, tied to Ontario’s rent increase guideline: 2.1% for 2026.
Always keep copies of your lease, move-in inspection notes and payment receipts, regardless of which deposit rules apply.
A $1,800 apartment does not necessarily mean you need only $1,800 to move in.
Your first housing expenses can include:
This is where many new immigrants underestimate their housing budget.
Imagine you rent an apartment for $1,800 and the same amount is required as your last month’s rent deposit.
You could already need $3,600 before furniture, groceries, transportation or utility expenses, and that’s before comparing quotes from a moving company, which can easily add several hundred dollars more for a local move within the GTA.
Build your arrival budget around the full move-in cost, not just the advertised monthly rent.
Many landlords and property managers in Toronto now require renters to carry tenant insurance (also called renters insurance) as a condition of the lease.
Even when it is not required, it is worth understanding what a policy covers, and it is genuinely one of the cheapest forms of financial protection a newcomer can buy, often a fraction of what car insurance or life insurance costs.
Tenant insurance can include protection for personal belongings, personal liability and certain additional living expenses, depending on the policy and insurer.
Before purchasing a policy, get quotes from more than one renters insurance provider and compare:
Do not choose insurance simply because it has the lowest monthly premium.
A cheaper policy with a very high deductible or limited protection may not provide the value you expect. It’s also worth asking your insurer or broker about bundling tenant insurance with car insurance once you’re driving in Ontario, since many providers offer a multi-policy discount for newcomers setting up their first Canadian insurance profile.
Here is where apartment hunting becomes a financial decision rather than simply a housing decision.
Consider two apartments.
Apartment A Rent: $1,750 Heat: Extra Electricity: Extra Parking: Extra Long commute
Apartment B Rent: $1,950 Heat: Included Water: Included Parking: Included Closer to work, on a subway line
Apartment A looks cheaper.
But after adding utilities, parking and a monthly transit pass, Apartment B could potentially cost less each month, and save you significant commuting time.
That is why newcomers should calculate their total monthly housing cost.
Include:
The lowest advertised rent is not always the cheapest place to live.
Toronto’s softer rental market has created something renters did not see as frequently during the tightest years: landlord incentives.
CMHC’s 2025 Rental Market Report noted that as vacancies rose across the GTA, landlords lowered rents on new leases and leaned on incentives to stay competitive, and that condominium apartment rentals added extra competition for purpose-built buildings as owners shifted units into the rental market amid a weaker ownership market.
Current Toronto-area listings have advertised promotions including:
Do the maths before accepting a promotion.
Ask what the normal monthly rent will be after the incentive ends, and get it in writing on your lease.
You do not have to figure everything out alone after arriving.
Ontario and the City of Toronto fund settlement organisations that help newcomers adjust to life in Canada.
Organisations such as COSTI Immigrant Services, the Toronto Newcomer Office and various Ontario Immigrant Nominee Program (OINP) resources provide settlement assistance, needs assessments, counselling and orientation services for new permanent residents, refugees and work-permit holders.
Newcomer organisations may help with areas such as:
🏠 Housing information
💼 Employment support and resume help
📄 Settlement and immigration guidance (including referrals to an immigration lawyer or licensed consultant if needed)
🗣 Language services (LINC classes)
💰 Financial orientation, including newcomer bank accounts and building credit
🤝 Community connections
The City of Toronto also directs newcomers to local settlement resources, and 211 Ontario offers referral support in multiple languages for housing, income and social services.
If your income is low, the City of Toronto also operates a network of affordable and non-market housing through Toronto Community Housing, which manages tens of thousands of affordable units across the city, although eligibility requirements and waiting lists apply. Waits for some unit types can run into years, so it’s worth applying early even if you don’t need it immediately.
01. Search more than one rental website
Do not assume every available property appears on the same platform. Compare Rentals.ca, Kijiji, RentFaster, PadMapper, Zumper and individual property management websites.
02. Apply filters before browsing
Set your maximum rent, number of bedrooms and preferred boroughs first. This prevents attractive but unaffordable properties from distracting you.
03. Compare older buildings with new developments
A recently built condo tower may offer a gym, coworking areas and premium finishes, but an older, well-maintained purpose-built rental building may provide the space you actually need for hundreds of dollars less a month.
04. Ask exactly what the rent includes
Confirm heat, water, electricity (hydro), parking, laundry and internet before signing.
05. Have your documents ready
Good affordable listings can still attract multiple applicants, especially near TTC subway stations. Keeping identification, employment documents and references organised can help you respond faster.
06. Never send money just because you feel pressured
Verify the property and landlord before paying a deposit. Be cautious about anyone demanding immediate e-transfer payment before letting you view the unit or properly verify the rental.
07. Inspect the apartment properly
Take photos when you move in. Ontario’s standard lease and the Landlord and Tenant Board place real weight on documented unit condition if a dispute ever arises.
08. Ask about incentives
If similar units are sitting vacant, ask whether parking, a move-in discount or another incentive is available.
09. Consider sharing temporarily
A room or shared two-bedroom apartment may dramatically reduce your first-year expenses while you establish yourself financially, build a Canadian credit history and compare mortgage pre-approval options for later.
10. Prioritise your commute
Saving $150 on rent is not always a bargain if the property forces you to spend considerably more on a monthly transit pass or vehicle, insurance and gas every month.
What is the average rent for a one-bedroom apartment in Toronto in 2026?
Rentals.ca listed the average Toronto one-bedroom rent at approximately $2,188 per month in March 2026. Individual listings may be higher or lower depending on the borough, building and included amenities.
How much is a two-bedroom apartment in Toronto?
The same Rentals.ca data placed the average two-bedroom rent at approximately $2,474 per month in March 2026, while CMHC’s purpose-built rental survey (which skews toward older buildings) put the average closer to $2,045 as of October 2025.
Are Toronto rents going down in 2026?
Toronto asking rents were down just 0.8% year-over-year in July 2026, the smallest decline among Canada’s six largest rental markets, even as they rose 1.5% from June to July heading into the seasonal peak. CMHC has also reported the GTA’s purpose-built vacancy rate climbed to 3.0% in late 2025, the highest since 2021.
What are some affordable neighbourhoods in Toronto for newcomers?
Current listings suggest that boroughs such as Scarborough, Etobicoke (particularly Rexdale-Kipling and Mount Olive-Silverstone-Jamestown), North York, York and parts of east-end Toronto like Leslieville can contain lower-priced rental and basement-apartment options. Prices vary greatly within each borough, so compare individual properties rather than relying only on neighbourhood averages.
Can a new immigrant rent without Canadian credit history?
It may be possible. Requirements vary by landlord, but proof of employment, income, savings, references, and a newcomer bank account or starter credit card can help demonstrate your ability to pay when your Canadian credit history is still limited.
Can a landlord in Ontario ask for a damage deposit?
No. Ontario’s Residential Tenancies Act does not permit security or damage deposits. Landlords can only collect a last month’s rent deposit, equal to at most one month’s rent, plus in limited cases a refundable key deposit.
Should I rent a room when I first arrive in Toronto?
For some newcomers, yes. Shared accommodation can reduce initial housing costs and give you time to establish employment, savings and Canadian financial history, including tenant insurance and a credit card, before committing to a more expensive apartment.
Can newcomers get affordable housing assistance in Toronto?
Toronto has non-market and affordable housing providers, including Toronto Community Housing, as well as newcomer settlement organisations such as COSTI. Eligibility for subsidised housing depends on factors such as household circumstances and income, and waiting periods can be long, so it’s worth applying as early as possible.
Do not begin your search by asking only, “What is the cheapest apartment?”
Ask a better question:
Which apartment gives me the lowest total cost while still keeping me close to work, transit and the services I need?
For one newcomer, that may mean a $1,600 basement apartment in York or Scarborough.
For another, it could mean sharing a two-bedroom condo near North York Centre.
A family may save more by choosing a residential borough away from downtown, while someone working in the financial district could spend slightly more on rent and considerably less on transportation and parking.
Toronto’s rental market in 2026 is offering renters more choice than during the recent period of extremely tight supply. Vacancy has increased, annual rent declines have narrowed to the smallest among Canada’s biggest cities, and some landlords are advertising incentives.
Use that to your advantage.
Compare several boroughs, prepare your documents, get quotes on tenant insurance early, calculate the full monthly cost, and read every rental agreement, including the last month’s rent deposit terms, before making a payment.
Your first apartment in Canada does not need to be your forever home.
It simply needs to be safe, affordable and financially manageable while you build your new life in Toronto, Ontario.
Rental prices and availability change frequently. Figures in this guide are based on current 2026 market sources, including Rentals.ca and CMHC, and should be verified before making a housing decision. This article is provided for informational purposes and is not legal, insurance or financial advice.
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