Hi, I live in T.O., but have never been to a Latin club, although I have a lot of friends who rave about them. I would definitely suggest Babaloo's in Yorkville, also check out Berlin on Yonge street, wednesday or thursday is Salsa night, early in the evening they have lessons, and then they open up the club to everybody.
I'm sure if you go to any of other clubs, the regulars can give you some more places to go.
Enjoy!!
Mary