Ontario's largest rental market — 1.4% vacancy, Eglinton LRT upside, and as-of-right 4-unit zoning that has unlocked conversion strategies previously impossible in the city.
Toronto is Canada's most liquid real estate market. For multifamily investors, that liquidity means deep demand, but requires precision underwriting to make deals pencil at current entry prices.
Scarborough — home to Perseverance Asset Management's offices at 2-2739 Eglinton Avenue East — consistently delivers 50–120 basis points more in cap rate than comparable midtown Toronto properties. The Eglinton Crosstown LRT and Scarborough Subway Extension are structural infrastructure investments that will compound Scarborough's rental demand for the next 20+ years. For investors who need a Toronto address at a cap rate that actually works, Scarborough is the conversation we have first.
Toronto's rental market is geographically tiered. Cap rates compress significantly as you move west and toward the downtown core.
| Submarket | Avg 2BR Rent | Yield Profile | Tenant Base | Investor Notes |
|---|---|---|---|---|
| Scarborough (East) | $2,100–$2,450 | Highest yield | Diverse community, transit users | Best cash-flow entry in Toronto. LRT and subway extension upside. Our home market. |
| East York / Danforth | $2,400–$2,900 | Strong yield | Young professionals, families | Transit-served, walkable. Strong conversion and laneway opportunity. |
| North York | $2,300–$2,800 | Good yield | Diverse families, professionals | Purpose-built 5+ unit sweet spot. Subway access supports demand. |
| West End (Parkdale/Roncey) | $2,600–$3,400 | Moderate yield | Young professionals, creatives | Lower yield but strong appreciation track record and low vacancy. |
| Downtown Core | $2,800–$3,400+ | Compressed yield | Professionals, condo-alt renters | 3.0–3.8% cap rates. Appreciation play for long-hold investors only. |
Bill 23 and Toronto's zoning bylaw amendments have fundamentally changed what you can build on a residential lot. Every residential lot in Toronto now permits up to 4 units without a rezoning application — including basement suites, garden suites, and laneway houses.
MLI Select is the most powerful financing tool for Toronto multifamily investors targeting 5+ unit properties. In a market where leverage efficiency is critical, 50-year amortization at insured rates can be the difference between a viable acquisition and a pass.
Full program details in our CMHC Financing Guide.
Acquire a detached or semi in Scarborough, East York, or North York. Add legal units via basement conversion, garden suite, or laneway house under as-of-right rules. CMHC insured financing at 5–10% down.
Best for: Investors with $150K–$400K equity wanting Toronto exposure at a manageable entry point.
Target 6–12 unit walk-up buildings in Scarborough, North York, or East York. Use MLI Select to minimize equity deployed, maximize amortization, and generate a 20-year hold scenario with rent growth compounding on a leveraged base.
Best for: Investors with $400K–$1M+ equity ready for their first commercial multifamily acquisition in the GTA.
Assemble 2–3 adjacent lots in transit corridors, rezone for 10–20 units, and develop purpose-built rental under MLI Select construction financing. Higher complexity, highest return.
Best for: Experienced investors with $2M+ equity and development appetite.
Yes — with the right submarket selection. Toronto core cap rates of 3.0–3.8% require MLI Select or significant appreciation conviction to justify. Scarborough at 4.5–5.2% is where cash-flow-focused investors find viability, especially when combined with MLI Select 50-year amortization.
Toronto development charges are among the highest in Ontario — $40,000–$80,000+ per unit depending on dwelling type and geography. Any new-build or major conversion proforma must account for DCs, building permits, and soft costs that can add 15–25% to total project cost.
Yes. Our office is at 2-2739 Eglinton Avenue East, Scarborough — we are a Toronto/Scarborough-based firm. All advisory services are available in-person or virtually, province-wide.
A strategy session covers your specific property — cap rate analysis, MLI Select eligibility, conversion potential, and a 10-year proforma. Mortgage financing through CornellMortgages.ca.
