For newcomers to the city, moving to Toronto may be a thrilling experience, but one of the most important considerations during settling is finding a cheap apartment.
Although asking rents are beginning to cool in Toronto, it remains one of Canada’s priciest rental markets.
Urbanation and Rentals.ca showed that the average price of condos and apartments for rent in Toronto was around CAD $2,537 per month as of June 2026. Rents for units in Toronto rose 1.2% from May but were 1.9% lower than they were 12 months ago.
But for newcomers, it’s far from the whole story. Consider older, purpose-built rental buildings, apartments in basements, shared rental units, and areas further away from the center for rent, as these choices will be significantly less expensive.
This guide provides information on where to find affordable apartments in Toronto in 2026, average rental prices, tenant insurance, rental requirements, and government resources and how to rent without scams.
Toronto Apartment Rent Prices in 2026
The first thing the new one should know is that there are two types of market rents: an average one and a real one for a particular apartment.
The range of listings varies widely depending on the neighbourhood, age of building, transit accessibility, size of the apartment, and if it is a condo or purpose-built rental.
As of this writing, Rental listings in Toronto are available under $2,000 for the first bedroom including listings around $1,700–$1,900 in some neighbourhoods.
For comparison, Rentals.ca reported these March 2026 Toronto averages:
| Apartment Type | Approx. Toronto Average | Newcomer Budget Target |
| Studio | Varies considerably | $1,500–$1,900 |
| 1 bedroom | $2,188 | $1,700–$2,200 |
| 2 bedroom | $2,838 | $2,100–$2,700 |
| 3 bedroom | $3,468 | $2,700–$3,500+ |
Budget targets are practical search ranges rather than guaranteed market prices. Actual asking rents change frequently.
The important point is that new immigrants should not assume they need to spend $2,500 or more simply because Toronto’s overall average is around $2,500.
7 Affordable Toronto Areas for New Immigrants
The most affordable apartment depends on your job location, transportation needs, family size and preferred lifestyle. However, newcomers looking for value should generally investigate Scarborough, North York, Etobicoke, East York, Weston and parts of York and the northwest Toronto area before concentrating exclusively on downtown.
Affordable Toronto neighbourhood comparison
| Area | Typical Affordability | Why Newcomers Consider It | Transit |
| Scarborough | $$ | More budget-oriented apartments and diverse communities | TTC subway, buses, Line 3/GO in selected areas |
| North York | $$–$$$ | Large apartment supply and access to subway | Line 1 + buses |
| Etobicoke | $$–$$$ | Mix of older apartments and newer buildings | Subway, buses, GO |
| York | $$ | Some older rental buildings and good central access | TTC |
| Weston | $$ | More affordable than many central neighbourhoods | GO + TTC |
| East York | $$–$$$ | Residential atmosphere and access to central Toronto | TTC |
| Rexdale/West Humber | $–$$ | Generally lower rental costs | TTC + nearby regional connections |
Tip: Do not choose an apartment based on rent alone. A $1,800 apartment that requires a long commute every day can cost more in transportation and time than a $2,000 apartment close to work.
1. Scarborough
Scarborough is frequently worth considering when affordability is a priority.
The area contains a large supply of apartment buildings, condominiums, basement units and shared accommodation. It is also one of Toronto’s most culturally diverse areas, making it attractive to immigrants from many parts of the world.
Newcomers should search around areas such as:
- Kennedy
- Warden
- Victoria Park
- Scarborough Town Centre
- Malvern
- Agincourt
- Birchmount
- Morningside
The major advantage is that you can sometimes get more living space for your money compared with downtown Toronto.
2. North York
North York is another strong choice for newcomers who want access to the subway without paying downtown prices.
Look around:
- Jane and Finch
- York Mills
- Don Mills
- Victoria Village
- Bathurst and Wilson
- Sheppard Avenue
- Yonge and Finch outskirts
Not every part of North York is inexpensive. Areas immediately around major subway stations can command higher rents. However, moving a few blocks or choosing an older apartment building can make a substantial difference.
3. Etobicoke
Etobicoke offers a mixture of apartment towers, rental communities, basement apartments and condominiums.
Newcomers should investigate areas around:
- Kipling
- Islington
- Martin Grove
- Rexdale
- West Humber
- Long Branch
Etobicoke can be particularly attractive for people working in western Toronto or Mississauga.
Current rental listings demonstrate the range available in the broader Etobicoke market, with some one- and two-bedroom properties appearing at considerably lower prices than premium downtown buildings.
4. Weston
Weston is worth considering for newcomers who want to remain within Toronto while keeping rent under control.
One advantage is transportation. Weston has access to GO services and TTC connections, making it possible to commute toward downtown and other parts of the GTA.
Older buildings can sometimes provide substantially more space than a similarly priced downtown condo.
5. York and East York
York and East York can offer a useful compromise between affordability and centrality.
These areas are closer to downtown than many Scarborough or Etobicoke neighbourhoods, but you may still find older rental buildings, basement apartments and smaller units at lower prices than luxury downtown properties.
The key is to compare rent + transportation + utilities + insurance, rather than simply comparing advertised monthly rent.
Where New Immigrants Can Search for Toronto Apartments
A newcomer should use several rental sources rather than relying on one website.
Recommended rental portals
| Rental Portal / Resource | Best For |
| Rentals.ca | Apartments, condos and rental buildings |
| Realtor.ca | Realtor-listed rental properties |
| Toronto affordable housing portal | Affordable and subsidized opportunities |
| MyAccesstoHousingTO | Rent-geared-to-income housing |
| Canada newcomer housing information | Government newcomer guidance |
Rentals.ca currently displays thousands of Toronto rental listings, including apartments below $2,000 in some areas.
Affordable Housing Programs for New Immigrants
Private rentals are not the only option.
The City of Toronto operates affordable housing programs, including affordable rental opportunities and rent-geared-to-income housing.
Toronto defines affordable rental housing through rents at or below the Average Market Rent established through CMHC’s rental-market data. The City also offers notifications for affordable rental opportunities when new units become available.
New immigrants with low incomes may also be eligible to apply for subsidized community housing. The Government of Canada notes that newcomers and refugees can add their names to subsidized-housing waiting lists after arriving in Canada.
For rent-geared-to-income housing, Toronto uses the MyAccesstoHousingTO system. Housing Help Centres can assist applicants with applications and navigating the system.
Because affordable housing often has waiting lists, newcomers should apply as early as possible rather than waiting until they urgently need housing.
What Documents Do New Immigrants Need to Rent an Apartment?
One of the biggest difficulties for newcomers is that they may not yet have Canadian employment history or credit history.
A landlord may request documentation such as:
- Passport or government-issued identification
- Proof of immigration status
- Employment letter
- Recent pay stubs
- Bank statements
- Canadian credit report, if available
- References
- Previous landlord information
- Proof of savings
- Guarantor information, where applicable
If you have just arrived and do not have a Canadian credit history, make your application stronger by providing evidence that demonstrates your ability to pay.
For example, a newcomer with a job offer can provide an employment letter showing salary and start date. Someone who has not yet found employment may need to explore temporary accommodation, shared housing or other arrangements while establishing employment and financial records.
How Much Does Tenant Insurance Cost in Toronto in 2026?
Tenant insurance is an important part of your Toronto rental budget.
A tenant insurance policy can protect your personal belongings and provide personal liability coverage. Depending on the policy, it may also provide additional living expenses if an insured event makes your rental temporarily uninhabitable.
There is no single Toronto-wide price because premiums depend on factors including:
- Location
- Coverage limits
- Deductible
- Claims history
- Type of residence
- Amount of personal property
- Liability coverage
- Optional coverage
As a useful benchmark, TD Insurance states that its average tenant-insurance premium was $483 per year, or roughly $40 per month, although individual premiums vary. It also gives an Ontario example where qualifying customers paid an average of $364 annually under specified coverage and eligibility conditions.
Therefore, a reasonable newcomer budget is approximately $20–$50+ per month, but you should obtain an actual quote before budgeting around a specific figure.
What Does Tenant Insurance Cover?
Tenant insurance generally focuses on the things you own and your liability as a renter.
Typical coverage
| Coverage | What It Can Protect |
| Personal property | Clothing, electronics, furniture and other belongings |
| Personal liability | Certain claims if you unintentionally injure someone or damage property |
| Additional living expenses | Temporary accommodation after certain insured losses |
| Legal/claim-related costs | Depending on policy terms |
| Optional coverage | Items or risks specifically added to your policy |
The Insurance Bureau of Canada explains that renters can have personal property and personal liability coverage, while some risks or situations may require additional coverage.
Always read the actual policy rather than assuming that every type of water damage, theft, flood or accidental loss is automatically covered.
Is Tenant Insurance Mandatory in Ontario?
There is an important distinction.
Tenant insurance is not something you should assume is automatically required by Ontario law for every renter. However, a landlord can include insurance requirements in the lease, and many rental agreements require tenants to maintain liability insurance.
The Insurance Bureau of Canada notes that personal liability insurance is typically a legal condition in a lease and that tenants can be personally liable for damage they cause to a building or injury they unintentionally cause to others.
Before signing a lease, check:
- Whether insurance is required.
- The minimum liability amount.
- Whether you must provide proof of insurance.
- Whether the landlord must be notified of cancellation.
- What deductible applies.
Ontario Rent Rules New Immigrants Should Know
Ontario’s Residential Tenancies Act provides important protections and responsibilities for most residential tenants.
For example, in most cases, landlords must provide at least 90 days’ written notice before a rent increase takes effect, and rent increases generally cannot occur more frequently than once every 12 months.
The 2026 Ontario rent increase guideline is 2.1% for units covered by the guideline. However, important exemptions exist, including many units first occupied for residential purposes after November 15, 2018.
This distinction matters when comparing apartments.
A cheap apartment in a newer building may have different rent-increase rules from an older rent-controlled unit.
How Much Deposit Can a Landlord Ask For?
Ontario’s Residential Tenancies Act limits the rent deposit a landlord can require.
The deposit cannot exceed the lesser of one rental period or one month’s rent, and it must be used as a rent deposit rather than as a general damage deposit.
New immigrants should be especially cautious if someone asks for a large cash deposit, cryptocurrency payment, international transfer or money before showing the property.
Avoid Toronto Rental Scams
Newcomers can be particularly vulnerable to rental fraud because they may be unfamiliar with Canadian rental practices.
The Government of Canada specifically warns newcomers about fraud and recommends learning how scams operate.
Common rental scam warning signs
| Red Flag | What You Should Do |
| Rent is far below similar listings | Compare prices on multiple portals |
| Landlord refuses to show the apartment | Do not send money |
| You are pressured to pay immediately | Slow down and verify |
| Deposit requested before a proper agreement | Be cautious |
| Landlord claims to be overseas | Verify ownership and identity |
| Payment requested through unusual methods | Avoid until independently verified |
| Photos do not match the property | Investigate |
| You are asked for excessive personal information | Do not provide it unnecessarily |
Canada.ca specifically lists unusually low rent, deposits without a formal rental agreement, overseas deposit requests and websites asking for personal or financial information as potential rental-fraud warning signs.
Never allow urgency to replace verification.
How to Find an Affordable Apartment Faster
If your target is an apartment under $2,000, competition can be significant. A structured search can improve your chances.
Follow this process:
Step 1: Set your maximum total housing budget.
Do not calculate rent alone. Include utilities, internet, transportation, tenant insurance and parking.
Step 2: Search multiple neighbourhoods.
Start with Scarborough, North York, Etobicoke, York, East York and Weston rather than only downtown.
Step 3: Set rental alerts.
New listings can disappear quickly.
Step 4: Prepare your documents.
Keep identification, employment information, references and financial documentation ready.
Step 5: Compare the building, not just the apartment.
Check laundry, heating, cooling, elevators, security, parking and maintenance.
Step 6: Visit before paying.
Whenever possible, physically inspect the apartment and confirm who is legally renting it.
Step 7: Read the lease carefully.
Understand rent, utilities, insurance, deposits, maintenance responsibilities and other terms.
Step 8: Get tenant insurance.
If required by your lease, arrange coverage before moving in.
Toronto Rental Budget Example for a Newcomer
Suppose a newcomer finds a one-bedroom apartment for $1,900 per month.
A basic monthly housing budget might look like this:
| Expense | Example Monthly Budget |
| Rent | $1,900 |
| Tenant insurance | $30–$50 |
| Internet | $50–$80 |
| Electricity/utilities | $50–$150+ |
| Transportation | Depends on travel needs |
| Parking | $0–$250+ |
| Housing-related total | Approximately $2,030–$2,430+ |
These are planning figures, not fixed Toronto prices. Your actual utilities, transportation and insurance costs can be significantly different.
This is why an apartment advertised at $1,900 should not automatically be treated as a $1,900 monthly housing commitment.