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September and early October are fantastic weather months, often at very warm temperatures and little rain. Fall can be felt in the air by mid-October and the leaves start to turn. Drives north of Toronto can reveal dramatic leaf colours -- a detailed fall colour report tracks progress across the province.
July and August are the busiest months. June and September are the best times, as the weather is nice, all attractions are going and crowds are much less. Toronto is about 1 1/2 hour drive from Niagara Falls. You should definitely consider spending some time there since you are so close.