Rental Yields Across the GTA

Rental yield — annual rent divided by purchase price — is the honest measure of an investment property. In the GTA the answer varies enormously by product type and submarket, and 2026 is not the same map it was in 2019.

Where the numbers actually work

CMHC's most recent Rental Market Report showed GTA purpose-built vacancy back above pre-pandemic norms and average two-bedroom rents easing modestly from their late-2023 peak. For individual investors, gross yields on well-priced 2-bedroom condos in Mississauga, Vaughan, and parts of Scarborough are running in the 4.5–5.5% range; downtown Toronto sub-500 sq ft units frequently print negative cash flow even after a 25% down payment.

Costs investors underestimate

• Condo fees rising 5–8% annually in older buildings with major capital projects looming.
• Property management (typically 8–10% of rent) if you're not self-managing.
• Vacancy and turnover — budget at least 4 weeks per turnover in most submarkets.
• Ontario's Residential Tenancies Act — rent increases are capped annually (2.5% in 2025) on units first occupied before Nov 15, 2018.

How we underwrite

Every YRD investment client sees a full pro-forma before we submit an offer — realistic rent, all carrying costs, capital reserve, and a stress test on both rate and vacancy. If the deal only works on optimistic assumptions, it isn't a deal.

"A property that costs you money every month is a lifestyle, not an investment. Underwrite honestly."