Hi I am a Canadian but live in Germany I am going to Toronto for a visit. While I am there if I phone a local number using my mobile do I have to dial like I was phoning from Germany or would the local carrier know that the call was local?

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It's hard to say.

Generally, you have to use the international dialing code (i.e. put +49 at the beginning).

Some networks have arrangements in place to automatically adjust numbers, but that only works if YOUR network AND the network you ROAM on have such an arrangement in place.

Put it this way: it won't hurt to dial the full international number

I have all the numbers in my phonebook as +44 for the UK, so that I know they'll work wherever I am.

Yes I do as well but that is for my numbers in Germany.

You can do either,both will work. When in Canada you can dial the national number or start with the country code (+1). Sadly you will be charged more than a Canadian making the same call unless you have a very friendly contract with your carrier.

You might be better off getting a local SIM if your roaming costs are high.