Buying a house in Scarborough is a significant financial decision with many layers. As a realtor with expertise in this community, I guide buyers through all the variables that make up the cost of purchasing a home in Scarborough. In this blog, I will break down the primary expenses you must consider, from home prices to hidden fees, so you can budget wisely and make informed decisions.
Scarborough offers many housing options: detached, semi-detached, townhomes, condo townhomes, condo apartments, and co-op apartments. Home prices vary depending on property type, location, and market conditions.
Scarborough Housing Types
This blog’s data is from the Toronto Regional Real Estate Board for January 2025.
Detached Homes: Median prices range from $981,000 to $1,364,000.
Semi-detached: Fewer options, but the median price is $834,850 to $1,018,000.
Townhomes: These are freehold products; the median range is $890,000 to $1,036,000.
Condo Townhomes: This is a condo product, so maintenance fees will be part of the equation (but more on that later), and these range from $630,000 to $796,000.
Condo Apartments: These are popular home types for first-time homebuyers and downsizers who want the convenience of a condo. Their median prices range from $412,500 to $566,500.
The Average Cost of a Home in Scarborough in 2025
The median price of all housing types in Scarborough is $798,312 compared to Toronto’s west-end communities at $879,375. That’s a savings of $81,063, or 9%. Compared to Central Toronto communities, their median number jumps to $1,047,706, while Scarborough is $249,394 less, or 24%.
When you compare Scarborough to close-by neighbourhoods such as the Beach, East York, or Leslieville, and a median price of $1,131,131, the cost difference is enormous at $332,819 less, or 29%.
Tip: Always check with a real estate professional for current trends, as prices fluctuate.
Looking for more insights on life in Scarborough? Read these other blogs next!
- How Far Is Scarborough From Toronto
- Scarborough’s Best Neighbourhoods For Downsizers: Guildwood “The Guild”
- Should I Retire to the Suburbs?
How Much is the Downpayment?
When I meet with clients to discuss the buying process in Scarborough, one of the early discussion points is the down payment required, which should not be confused with the deposit. The down payment is always tied to the price of the house. Here’s a breakdown to determine how much funds are necessary at closing.
- If the purchase price is less than $500,000, the minimum down payment is 5%.
- If the purchase price is between $500,000 and $1,499,999, the minimum down payment is 5% of the first $500,000 and 10% of any amount over $500,000.
- If the purchase price is $1,500,000 or more, the minimum down payment is 20%.
Other Upfront Costs
There are mortgage and other financing costs to consider when purchasing a home.
Mortgage loan insurance: If you put down less than 20% of the purchase price, you must have mortgage insurance, and the premium will range from 2.8% to 4% of the total loan amount. The insurance premium can be paid in a lump sum when you’re purchasing the property, or the lender pays the premium to CMHC, which you repay in your mortgage payments.
For illustration purposes, the median price of a Scarborough home is $798,312. With a downpayment of $79,831 (10%), the insurance premium on the total loan of $718,481 is calculated at 3.1%. The premium is $22,272.
Deposit: You must provide these funds within 24 hours of an accepted offer. You should expect to pay a minimum of 5% of the purchase price. Before starting your house hunting, make sure these funds are available. The money typically gets held in trust with the listing brokerage. On a $1,000,000 home purchase, expect the deposit to be $50,000.
Home Appraisal: In most cases, a home appraisal will need to be performed as a condition of getting a mortgage. A fee is associated with it, but it’s usually built into your mortgage. Your lender arranges it and pays the appraiser directly. This service costs $500 to $1,000.
The interest rate calculates how much you need to pay to borrow money. These rates rise and fall over time. You renegotiate your mortgage interest rate every time you renew your term, meaning your mortgage payments could be higher or lower.
Closing Costs
You might have heard the expression, “The devil is in the details.” Here are the closing costs many overlook when calculating home purchases.
Land Transfer Tax: The tax on a purchase price of $1,000,000 is $32,950. Half goes to the city of Toronto, and the other half goes to the province of Ontario.
First-time buyers may be eligible for a rebate of up to $4,000 payable to the provincial land transfer tax and $4,475 of the municipal land transfer tax, totalling $8,475.
Home inspection: A quality home inspection with a comprehensive report will cost between $500 and $1,000. They aren’t mandatory but highly recommended.
Title Insurance: This will be purchased through your real estate lawyer. It’s not mandatory, but it’s highly recommended, and your lawyer will explain why it’s so important. You should budget $250-$500. Depending on the property’s value, type, and location, it can cost more.
Adjustments: Your lawyer will also collect these funds. Adjustments are expenses the seller has already paid on your behalf. These costs typically include prepaid property tax or utilities. Your lawyer will confirm the amount owed before your meeting so that closing documents can be signed.
Movers: If you plan on hiring professional movers, there are a variety of fee structures. Always get a written quote in advance to avoid surprises on move-in day. Expect to budget $4,000-$7,000, plus tip.
Are you a senior interested in living in Scarborough? Here are a few more posts you might find helpful:
- Is Scarborough Good For Seniors?
- What are Scarborough’s Best Neighbourhoods for Seniors?
- How to Find a Real Estate Agent for Seniors in Scarborough?
The Costs of Owning a House in Scarborough
There are ongoing homeownership costs that you can expect to continue and increase once you own your house.
Property Taxes: These vary depending on location and lot size. In Scarborough, a typical property can expect to cost from $3,000 to $6,000. Condos will cost less, typically $1,500 to $2,000.
Home Insurance: No two homes are the same. The size, how the house is constructed, age, building materials, and the value of the home contents determine the average cost of home insurance. In Scarborough, you can expect to pay $1,400 to $3,000.
Utilities: The cost of gas, hydro, and water is variable, and these expenses will likely continue to increase over time. You can request a copy of a homeowner’s current utility bills as a reference point for these costs. However, everyone manages their home utilities differently, so those costs might not be relevant to you.
Maintenance: The cost to maintain a typical house in Scarborough should be estimated at 1% of the home’s value. If your home is valued at $1,000,000, you can expect to spend $10,000 annually.
Maintenance Fees: This is specific to condos. The fee will depend on square footage, amenities, age, and building condition. Another factor to consider is how well the property is managed. You can expect $500 to $1,000 per month. You also need to pay close attention to what comes included in the maintenance fees. Sometimes, utilities are included.
Home Buyer Incentives in Canada
There are incentive programs that help you save money for your house purchase.
The Home Buyer’s Plan (HBP): Allows you to withdraw from your registered retirement savings plan (RRSP) up to a maximum of $60,000.
First Home Savings Account: You can save up to $8,000 annually. Contributions to an FHSA are generally deductible and can be used to reduce your tax.
HST New Home Rebate: You may be eligible for a maximum of $24,000 if you paid HST on the land and $16,080 if you did not.
Consult a real estate lawyer or accountant to confirm if this rebate applies to you.
Working with a real estate professional with experience and knowledge of the home-buying process will be invaluable. You will be set up for a successful home-buying experience with proper planning and guidance. Please reach out if you have any questions about approaching your next chapter.
Thinking about buying a home in Scarborough? I can help! Give me a call at 647.283.2127 or email stuart@stuartnodell.com to get in touch.
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