Ontario Real Estate Investing 101: What Every New Investor Should Know

Ontario is home to Canada's most dynamic real estate market—and for new investors, it can feel overwhelming. This guide provides a clear roadmap that surpasses typical search results, empowering you to get started confidently in Ontario real estate investing in 2025.

1. Understanding the Foundations of Real Estate Investing in Ontario

• Ontario real estate ranges from single-family homes and condos to duplexes and multifamily units—each with distinct advantages and management demands

• Investors generally choose between:

  • Active investing (buying and managing rental properties, flipping)

  • Passive investing (REITs, crowdfunding platforms, MICs) 

• Mortgage financing is common in Ontario: lenders usually require 20% down for investment properties (non-owner-occupied)

  
  

2. Choosing Your Strategy: Active vs Passive

Active Investing

• Includes rentals, flipping, or BRRRR (Buy‑Rehab‑Rent‑Refinance‑Repeat) models popular in Ontario markets like Toronto and Ottawa

• Requires capital, due diligence, and property management abilities.

• Pros: Long-term appreciation, rental income, tax deductions (e.g., mortgage interest, depreciation) Cons: Hands-on work, vacancies, maintenance and tenant risk

  
  

Passive Investing

• Invest via REITs, real estate crowdfunding, or Mortgage Investment Corporations (MICs)

• Minimums can be low—some platforms accept as little as $100–$500

• Pros: Diversification, liquidity, minimal management

• Cons: Platform fees, less control, potential lock‑up periods

  
  

3. Step-by-Step Roadmap for New Investors

1. Set your investment goals → Are you focused on steady cash flow, long‑term growth, or short‑term gains?

2. Determine your capital → Will you go direct (property) or indirect (passive)?

3. Learn Ontario-specific regulations → Know landlord-tenant laws, land transfer taxes, REBBA rules, and RECO requirements.

4. Pick your entry method:

   • Direct real estate: Start with a condo, duplex, or small multi-unit in a mid-sized Ontario City.

   • Passive: Join a REIT, crowdfunding deal, or MIC with low investment thresholds.

5. Build your team → Broker familiar with investor financing, real estate lawyer, accountant, property manager or contractor.

6. Crunch the numbers & manage risk → Consider vacancy buffers, interest-rate changes, operating expenses.

7. Execute and scale → Start small, reinvest equity, diversify gradually.

   
   

4. Tips for Ontario New Investors

• Start small: Passive investments let you begin with minimal capital and learn the space before diving in.

• Select your markets wisely: Look for Ontario neighborhoods with strong rental demand, steady job growth, and family-friendly amenities.

• Due diligence is essential: Analyze cash flow, property condition, fees, and management options thoroughly.

• Diversify strategies: Blend passive investments (like REITs or MICs) with direct rental property exposure for balance and flexibility.

  
  

Final Summary

Whether you're aiming to manage rental units in Ottawa or invest passively through platforms while living in Toronto, Ontario offers diverse pathways into real estate investing. Equip yourself with clear goals, choose a strategy that fits your commitment level, budget wisely, build the right team, and stay patient. Your real estate journey begins with knowledge, then action.

Frequently Asked Questions

Can I invest $5,000 in real estate?Yes. Through crowdfunding platforms, REITs, or MICs, many investors in Ontario and Canada start with as little as $100 to $5,000, gaining exposure to rental properties or mortgages without direct ownership.

Do you need 20% down for an investment property in Canada?Typically, yes, especially for non-owner-occupied real estate. Lenders in Ontario usually require about 20% down. Owner-occupied or multi-unit properties you live in may allow lower down payments under certain conditions.

Can I invest $100 dollars in real estate?Absolutely. Many crowdfunding platforms and some REITs allow investments starting at $100 or even less, making real estate accessible even to those with very limited capital.