Sources tell ESPN.com's Marc Stein that all 30 teams were notified at 5 p.m. ET on Friday that Bennett had cleared waivers. The Philadelphia 76ers and Portland Trail Blazers were the only teams with sufficient salary-cap space to claim him, though the Cleveland Cavaliers had a trade exception big enough to absorb Bennett's $5.8 million salary.
The move to Toronto, after a strong summer with the Canadian national team, might be the spark Bennett needs to kick-start his career after rough stints with the Cavaliers and Timberwolves.
The top pick of the 2013 draft by the Cavaliers, Bennett was traded to Minnesota in the Kevin Love deal in the summer of 2014 but struggled in his lone season with the Timberwolves with injuries.
Minnesota had attempted to deal Bennett but could not find a trade partner to take him, a league source previously had told ESPN's Chris Broussard.
Information from The Associated Press contributed to this report.