The Clarence Park hostel
As a backpacker you would like to meet other backpackers and that is of course the easiest thing to do in a hostel. In the middle of downtown, downtown Toronto, lies The Clarence Park. This is a nice hostel in Toronto based on my experience, but also from others who have had multiple hostels in Toronto.
Not only does it look clean and good here, but you can also meet other backpackers here. This can be in the large kitchen or in the common areas. And you can get a bed from as little as 20 euros per night.
Should The Clarence Park run out of space, you can probably visit one of the other hostels in Toronto: College Backpackers, HI Toronto or Planet Traveler Hostel.