Scarborough · Toronto mortgage guide
Mortgages in Scarborough
A large, diverse swath of east Toronto with the GTA's most attainable detached and semi-detached homes plus growing transit investment.
Property mix in Scarborough
- Detached bungalows and back-splits
- Semi-detached and townhouse rows
- Mid-rise condos near subway extension
- Basement-apartment income properties
- Newer infill builds
Price context
Detached homes still trade meaningfully below the Toronto average, making Scarborough one of the strongest first-time buyer entry points inside the 416.
Who buys in Scarborough
- First-time freehold buyers priced out of central Toronto
- Newcomer families wanting full houses
- Investors targeting rental income with basement suites
- Move-up buyers seeking value
Mortgage considerations for this neighbourhood
- Verifying legal second-suite status with the city
- Using rental income to qualify
- Appraisal variance across micro-neighbourhoods
- Insured vs. uninsured pricing at the $1M line
Frequently asked questions
+Do I need a Toronto mortgage broker if I'm buying in Scarborough?
You don't need one, but a broker can compare lenders, structure your offer, and flag Scarborough-specific underwriting issues (building lender lists, heritage rules, multiplex legality, or appraisal variance) that a single-lender bank rep won't surface.
+How much should I budget for closing costs in Scarborough?
Plan for 1.5%–4% of the purchase price for land transfer tax (Toronto buyers pay both Ontario and municipal LTT), legal fees, title insurance, status certificate review on condos, home inspection, and adjustments. A first-time-buyer LTT rebate may apply.
+Is a pre-approval enough to make an offer in Scarborough?
A pre-approval gives you a working budget and a held rate, but it isn't a firm commitment. For competitive offers, your broker will help you understand what financing-condition language a lender will support on the specific property.
+Can I include rental income from a basement suite when buying in Scarborough?
Often yes, if the suite is legal or can be brought to legal status. Lenders differ on how much rental income they add back and how they document it. Your broker can pre-screen lenders based on the property's suite status.
Nearby neighbourhoods
This website does not guarantee any mortgage rate, approval, or product. We do not provide mortgage advice on this website. All mortgage transactions are handled by the licensed brokerage identified on this site, in accordance with FSRA requirements.