Mayor Olivia Chow’s 2026 Toronto budget has flipped the usual script at City Hall, surprising critics and residents alike with lower taxes, restrained spending, and a clear affordability message — all in the middle of an election year.
At first glance, it looks like good news. But beneath the headlines, there’s a bigger story unfolding — one that every Toronto homeowner, investor, and borrower needs to understand.
A “Low-Tax” Budget in an Election Year? That’s New
For years, Chow was known for aggressive spending and higher tax increases. But in 2026, she’s taken a very different approach.
Her proposed budget includes:
A 2.2% property tax increase — in line with inflation
A TTC fare freeze
Expanded child nutrition programs
More police, firefighters, and paramedics
Continued free library programs
Modest service enhancements — not massive expansions
Chow says the focus is simple: “making life more affordable” for Torontonians during uncertain economic times.
And for homeowners? That message resonates — especially after years of rising mortgage payments, food costs, and utilities.
The Real Cost: Modest Relief, Heavy Trade-Offs
Toronto’s 2026 operating budget sits at $18.9 billion, up just 1.1% from 2025 — effectively flat once inflation is considered.
But here’s the part many headlines gloss over:
The city faced a $1 billion shortfall
Over $320 million was plugged using one-time reserve funds
A major COVID-era reserve will be fully depleted
Hiring freezes continue across non-essential roles
Future budgets cannot repeat these fixes
Critics are calling it “smoke and mirrors.” Supporters say it’s the result of earlier tough decisions.
Either way, this strategy has limits — and that matters for homeowners.
Property Taxes Stayed Low — For Now
The average Toronto homeowner will see an increase of about $91 per year, bringing the typical bill to roughly $4,252.
That’s a relief compared to:
9.5% in 2024
6.9% in 2025
But city officials openly admit this isn’t guaranteed going forward.
Once reserves dry up, future councils will face pressure to:
Raise property taxes
Add new fees
Introduce new revenue tools
And historically, homeowners carry the burden.
What This Means for Toronto Homeowners in 2026
While taxes are temporarily stable, household costs aren’t.
Many Toronto homeowners are dealing with:
Mortgage renewals at double or triple past rates
HELOC interest spikes
Higher insurance and utility costs
Reduced household cash flow
This is exactly why more homeowners are turning to home equity solutions — not to spend recklessly, but to regain control.
Why More Toronto Homeowners Are Using Equity Strategically
At Lendworth, we’re seeing a clear trend:
Homeowners are using equity to:
Consolidate high-interest debt
Reduce monthly payments
Cover tax obligations
Fund renovations or secondary suites
Create financial breathing room — without selling
Unlike banks, private lending focuses on equity, not stress tests.
If you own property in Toronto, Vaughan, or the GTA, you may be sitting on hundreds of thousands in usable equity — even in today’s market.
The Equity Reality No One at City Hall Is Talking About
City budgets may shift. Taxes may stay flat — or jump later.
But one thing is consistent:
👉 Your home equity remains one of the most powerful financial tools you control.
And using it wisely — before pressure builds — often makes the biggest difference.
Feeling the Pressure? Lendworth Can Help
If rising costs, renewals, or uncertainty are tightening your finances, you’re not alone.
At Lendworth, we specialize in:
Home equity loans
Second mortgages
Debt consolidation
Private refinancing
Fast approvals across Toronto & the GTA
✅ Equity-based approvals
✅ Flexible terms
✅ No bank stress test
✅ Clear, honest advice
📞 Speak with a local lending expert today
🌐 Visit lendworth.ca
Your equity deserves more™