Toronto offers its residents a world of excitement, opportunity and enrichment, which is why many people have their eyes on the city when relocating. It is also widely thought to be a city for the affluent, with Midtown being home to some of the wealthiest neighbourhoods. Walk through the quiet, beautifully landscaped streets of Rosedale or Forest Hill, and you’ll quickly see why.

Stately houses adorn large expansive lots in these small enclaves of luxury. But are there any areas of Midtown that are still affordable? Let’s take a closer look at the dynamic district that makes up one of the most unique and desirable markets in Toronto.

Why Choose Midtown?

If you’re looking for excitement, Toronto is the place to be. However, if you want that constant sense of “go, go, go” to be balanced off with some peace and quiet, you can’t ask for a better place than Midtown.

A convenient location 4.5 km from downtown gives you easy access to the dining, shopping, live theatre and stadiums that Toronto is famous for. You’re also in close proximity to the many beautiful green spaces, peaceful parks, and walking trails that residents know and love.

For families, Midtown offers premium access to some of the best schools in the city, both public and private. When it comes to enjoying the best that life has to offer, it’s easy to see the appeal of Midtown!

Which Midtown neighbourhood is right for you? The posts below will give you some ideas:

What Does Affordable Mean?

The word “affordable” is relative. Real estate in Toronto is a prized commodity, one that’s becoming more desirable by the minute. This increased demand is evident in the values of houses, which currently average out to slightly over $1 million.

This is the average, so understandably, some properties will cost much more than this, and some will cost less. When thinking about affordability, the barrier to entry and monthly carrying costs often matter more than the overall price. 

Accessibility Vs Affordability

For example, a house that costs $999,999 can actually be far more accessible than one that’s $1 million. How can one dollar make such a difference in affordability? Let’s talk about the down payment.

The minute the house you have your eye on is $1 million, you need at least 20% to be considered for a mortgage. That works out to $200,000 or more, available in your bank account right now. Most lenders won’t allow you to borrow these funds, either, as that makes your mortgage more of a liability.

On homes under $1 million, the requirements are less stringent. You need 5% on the first $500,000 and 10% on the remainder. How does that work on that house for $999,999? 5% of the first $500,000 is $25,000. 10% on the remaining $499,999 is $49,999. 

This means you need $74,999 upfront to qualify for a mortgage. Not that this is a small amount, but it’s certainly far more accessible than $200,000. 

Want to know more about the areas we serve? Check out all of our community guides right here.

Who Is It Affordable For?

Once again, whether Midtown is affordable is relative to who is making the purchase. For many first-time buyers with limited savings and equity, Midtown is not necessarily the spot for a starter home. 

However, for a dual-income family with substantial savings and years’ worth of equity in their current home, upgrading to Midtown could be very feasible. It can also be a wise investment in the future as real estate values tend to keep increasing as the years go by. Let’s take a closer look at the numbers.

Traditionally, it’s thought that your housing costs should be 30% or less of your gross income. To keep the illustration simple, let’s imagine you have a mortgage of $1 million at an interest rate of 6.5% amortized over 25 years. Your payment would be approximately $6,700 each month, meaning you would need a household income of $22,333 monthly, or $267,996 annually to stay within the guidelines. 

If you are fortunate enough to enjoy such a high income, there is great news! You can likely afford your home in Midtown quite comfortably. However, there is another path available to existing homeowners.

Imagine you paid $500,000 for a property that is now worth $900,000. You have an equity gain of $400,000, which you can now use to upgrade to a larger home. This could mean you end up borrowing far less to make your purchase, thus lowering your monthly payments considerably. 

Even if you earn less income, your house becomes affordable simply because you got into the market earlier and prices have gone up since then. Taking advantage of equity growth is how many home buyers keep moving further up the property ladder. 

Midtown is a great place to live and invest! Learn more in the posts below:

Types of Properties Available

Midtown is well known for its beautiful heritage homes and spacious custom builds that make it one of the most desirable areas in Toronto. However, not every property comes with a luxury price tag. You will also find a few established condo buildings sprinkled throughout the neighbourhoods that provide opportunities for more modest buyers, along with some exciting new developments that will soon be available. 

For those looking for something between a starter condo and a large detached home, a townhouse might be the perfect stepping stone. Wherever you’re looking, you are sure to love the blend of excitement, convenience, and peaceful scenery that Midtown offers!

Are you ready to begin the search for your next home in Toronto? We are happy to help you with the answers to your most pressing questions. Reach out today to (416) 485-7575  or david@batorigroup.com, or bobby@batorigroup.comfor more information or to get started.