We (dh, me and toddler ds) moved to Toronto from uk back in august. Dh works downtown and we live in east York very close to the subway line. It's about a 45 min commute door to door for dh. Toronto is really made up of lots of little neighbourhoods and I think it's great for families (I didn't expect it before the move!).
We have a house with a garden and loads of facilities nearby such as a free swimming pool, wading pool, a splashpad, a very kid friendly library, 2 parks, an ice rink and 2 farmers markets may- nov.
It's more expensive renting a house downtown but we save by not needing a car.
The actual subway ride down to union station is only 20 mins at most and while we could get a cheaper place out along the go train line, oakville, Ajax etc etc, I don't think these suburban areas offer as much to do and a car becomes crucial. Car insurance is outrageous here!
A handy site for looking for places to rent is Padmapper.
Hope your move goes well, btw I can recommend a company called gb liners if you're looking to ship any belongings over.