The man, whose name has not been released, sustained fatal injuries when he landed in a yard in Georgina Sunday, the Toronto Sun reported.
Police Detective Sgt. Peter Heard did not give any details on the situation, but said, "it sounds as though he was having some trouble with the parachute."
A parachute expert will likely be called in to "do a forensic examination of the scene and of the equipment," Heard said.
Nader Shahrakie, 47, was barbecuing across the street when the man, a student at the Parachute School of Toronto, dropped to the ground.
"The sound that it made, that very, very crushing sound, you could feel that everything in that body was crushed the way that he hit the ground," Shahrakie said.
Shahrakie said he ran to the man and waited with him until police and paramedics arrived.
There was "no movement at all, heavy breathing, and his eyes were half open," Shahrakie said.
Marie Dunn, 76, said she saw the man in the air.
"The 'chute looked like it wasn't fully open and he was just twisting and twisting all the way down," she said.
'SNL': 'Anchorman 2' cast, One Direction sing 'Afternoon Delight' [VIDEO]
Wisconsin business offering 'therapeutic cuddling' forced to close