As a lifelong resident of the city, home has always been in midtown Toronto. In creating TorontoLivings, I wanted a place to share my experiences in the city, to educate our clients on the ever-changing market, and show people a side of the City that most don’t see every day.
Buying a home in Toronto isn’t just about square footage or curb appeal—it’s about making sure the bones of the house are solid before you ever write that offer. Over the years, I’ve toured hundreds of homes with buyers, and there are five key areas I always zone in on. Whether you’re a first-time buyer or a seasoned investor, these checkpoints could save you from major headaches down the road.
1. Curbside Clues: Waterproofing & Drainage
Before you even step inside, take a slow walk around the exterior. Look for signs that water may not be draining properly: negative grading (where the ground slopes toward the house), cracks in the foundation, or staining along the brick or siding. These are often early warnings that water could be getting into the basement.
In a city like Toronto—where spring brings big rains and melting snow—drainage issues are a common (and costly) concern. A home lacking proper downspout extensions or with eroded soil near the base can become a sump-pump horror story waiting to happen.
Windows don’t just frame your view—they can also frame future repair bills. When touring a home, check for condensation between panes (a telltale sign of a failed seal), warping, or frames that stick when you try to open them.
Older single-pane windows or wood sashes that have seen better days can drastically affect heating costs in the winter and resale value down the line. According to Natural Resources Canada, ENERGY STAR windows can reduce energy bills by an average of 8%.
Old Windows
Tip: Run your hand near the frame to feel for drafts. If you’re catching a breeze on a calm day—that’s a red flag.
3. Roof Round-Up: Age, Material & Maintenance
Roofs aren’t easy to inspect up close on a quick tour, but a good set of eyes can still spot warning signs from ground level. Curling or missing shingles, visible moss growth, sagging rooflines, or exposed flashing are all signs the roof might be past its prime.
Asphalt shingles, the most common type in Toronto, typically last about 20 years—less if ventilation is poor or the previous owner went for a cheaper product.
And if the listing says “new roof” but the shingles scream 1997? It’s worth a follow-up.
4. Inside Intel: Electrical & Plumbing Priorities
Once inside, I keep a sharp eye on what’s behind the walls—because some of the biggest deal-breakers are hidden in plain sight. Start with the electrical: are there enough outlets? Are any warm to the touch? Is there visible knob-and-tube wiring (still found in some older Toronto homes)?
Plumbing-wise, check under sinks for signs of leaks, look at the water pressure, and ask if the home has any polybutylene piping—a material prone to failure. If the home has been renovated, ask whether the plumbing and wiring were updated with permits.
Here’s where experience really pays off. I once toured a home with a client and something about the ceiling line caught my eye—it looked like a structural wall had been removed. Sure enough, after checking with the City of Toronto, we found no permits had ever been pulled for that kind of work. We walked away from the deal.
If you spot inconsistent ceiling textures, odd bulkheads, or missing supports, it’s worth asking: was this work done properly—and legally? You can check building permit history for any property through the City of Toronto’s permit portal.
Unpermitted work can impact insurance, financing, and even your ability to resell.
Final Thought: Touring homes can feel exciting—but it’s also a high-stakes inspection walk. Look past the staging and freshly baked cookies. The signs are often there… you just have to know where to look.
Want a second set of eyes on your next tour? Let’s chat— drop us a message below!
Looking for predictable rents, standout amenities, and a landlord who’s actually reachable? Purpose-built rentals (PBRs) are designed from the ground up with renters in mind. We’ll break down how they compare to condos, spotlight top options like Sloane by Fitzrovia, and help you decide if this style of living is the right fit.
What Is a Purpose-Built Rental?
Unlike condo rentals—where you’re often dealing with individual owners and inconsistent rules—purpose-built rentals are owned and operated by a single landlord, usually a professional developer or REIT. Everything, from the lease terms to the amenities, is built with tenants in mind.
Key Differences: PBR vs. Condo Rental
Purpose‑Built Rental
Condo Unit
Ownership
One landlord or institution
Individual owner
On‑Site Management
Dedicated leasing and maintenance team
Usually managed off‑site by a third party
Rent Guidelines
Often exempt from rent caps if built after Nov 2018, but many offer fixed increases
Also exempt, but owners set their own terms
Amenities
Designed for renters, consistently maintained
Varies by building and condo board decisions
Lease Terms
Uniform, transparent
Can vary widely owner to owner
Did you know? According to CMHC, purpose-built rental completions in Toronto jumped 47% in 2024. Vacancy sits around just 1.5%—renters are moving fast on these units.
Why More Renters Are Choosing PBRs
Here’s what we regularly hear from our clients:
Stable Pricing. Developers often include 1- to 2-year rent caps to attract long-term renters.
Responsive Management. Need repairs? They’re often handled within hours—not weeks.
Community-Centric Living. Amenities like rooftop lounges, dog runs, and co-working studios cater to your everyday lifestyle.
A recent TRREB Rental Report noted average condo rents rose 8% year-over-year, while most purpose-built buildings kept increases closer to 4%—and many lock that rate in your lease.
Spotlight: Sloane by Fitzrovia
Located just north of Yorkdale, Sloane brings hotel-like amenities together with a residential feel that’s hard to beat:
Bowling alley & arcade for on-site entertainment
Doctor’s suite & kids’ playroom for easy scheduling
PS5 gaming pods with ergonomic setups
Dog run & pet spa for your four-legged roommate
Coworking space with fast Wi-Fi and private booths
Rendering of gym at Sloanes second and third tower
Quick snapshot: Studios from ~$2,100, two-beds from ~$3,250. TTC Glencairn Station in under 10 minutes. On-site car-share and EV charging available.
The Parker(Yonge & Eglinton): Sky-lounge, rooftop pool, and stylish interiors.
The Selby (Sherbourne & Bloor): Historic charm meets high-end design—plus a dog spa.
Liberty House (Liberty Village): Social-forward features like a co-lab kitchen and curated events.
Is It Right for You?
Ask yourself:
Need budget stability? PBRs often include multi-year lease terms.
Work hybrid or remote? Look for coworking spaces and private meeting pods.
Got a pet? Many buildings have pet-friendly policies baked in—Sloane is a standout.
Planning to buy? Flexible lease terms can bridge you to your next move—our Buy Better guide has you covered.
Let’s Find You a Fit
The Toronto rental market is changing fast—and purpose-built rentals are leading the charge. If you’re tired of the condo shuffle or want to know what perks are out there, we can help. Leave us a message below!
Call or DM the TorontoLivings team. We’ll match you with the right building, walk you through the lease, and negotiate the best incentives—so you can move in stress-free.
Buying into a mature condo building in Toronto might not have the same flash as something pre-construction—but for the right buyer, it could be the smartest move you make. Older condos often come with more square footage, solid construction, and a deeper community feel. But they also carry risks that demand a little extra due diligence.
Let’s break down the key advantages, potential pitfalls, and how to tell when an older condo is worth it.
The Upside: Why Older Buildings Still Win in Toronto
1. Spacious Layouts
New condos average under 600 sqft for a one-bedroom. Compare that to older units built pre-2000—where 700–900 sqft is the norm. Think defined dining areas, actual coat closets, and functional kitchens. For families, remote workers, or anyone planning to stay long-term, this extra elbow room can dramatically improve your quality of life.
2. Character Features
Some older buildings offer features nearly extinct in new builds: gas BBQ hookups, larger balconies, wood-burning fireplaces (in rare cases), and even two-storey layouts. Buildings like DNA1 on Shaw or the Summit near King West are great examples. These elements can boost resale value for buyers looking for something more unique than a “glass box in the sky.”
3. Established Communities
Older buildings tend to have more owner-occupants and less investor churn. The result? A stronger sense of community and generally better upkeep. You might find active resident committees, building-wide events, and long-time neighbours who care deeply about the property’s future. These soft factors play a major role in your day-to-day satisfaction.
4. Stronger Reserve Funds
Well-managed buildings with decades of budgeting behind them often have healthy reserves, meaning fewer surprise costs. (Always verify this via the reserve fund study, of course.) Some older buildings even overfund their reserves in anticipation of future projects, which could mean smoother sailing for you down the line.
Older condos often have higher fees to cover aging systems. Expect fees in the range of $0.90–$1.40 per square foot. For a 900 sqft unit, that’s $810–$1,260/month. But—those fees may include heat, hydro, or cable (which newer buildings often bill separately). It’s crucial to compare what’s included rather than just looking at the total dollar amount.
2. Special Assessments
A solid reserve fund doesn’t mean you’re immune from a surprise. Elevators, boilers, or parking garages eventually wear out—and if the reserve isn’t enough, owners share the bill.
One buyer recently walked away from an offer after reading the status certificate: the building needed $1.5M in underground garage repairs and hadn’t yet voted on a special assessment.
Other red flags? Unusually quiet boards (no newsletters or AGMs), deferred maintenance (cracked tiles, broken elevators), or lawsuits between residents and the condo corporation. All are worth investigating.
3. Dated Design & Mechanicals
Think beige tile, narrow galley kitchens, and popcorn ceilings. Some buyers see this as a chance to add value; others, a costly headache. It’s all about your appetite for renovations. Replacing fan coil units, windows, or electrical panels can be complex in older buildings and may require board approval.
How to Do Your Homework: Due Diligence 101
Review the Status Certificate
This is your window into the building’s finances, reserve fund, legal issues, and upcoming projects. It also outlines rules (like pet restrictions, short-term rentals, and use of amenities) that can make or break your condo experience.
Are there upcoming major repairs? Is the fund sufficiently topped up? A good rule of thumb: reserve contributions should be 25–35% of maintenance fees. Ask for the most recent engineering audit and look at the 3-year repair forecast. Bonus tip: check when the last big-ticket item (roof, HVAC, windows) was done.
Compare What You Get
Some buildings include heat, hydro, or cable in their fees—while others don’t. Make sure you’re comparing apples to apples when evaluating costs. Ask whether the condo has bulk internet, security patrols, or shared amenities with neighbouring buildings. These extras can add major value—or extra costs.
Old vs. New: Condo Comparison Chart
Feature
Older Condo
New Condo
Price/Sqft
Lower
Higher
Size/Layout
Larger, more defined
Compact, open-concept
Maintenance Fees
Higher, more inclusive
Lower initially
Reserve Fund
Established
Low (early years)
Potential Surprise Costs
Moderate–High
Moderate–Low
Aesthetic
Dated, reno potential
Sleek, modern
Community
Owner-occupied, stable
High rental turnover
Amenities
Modest, well-used
Glossy, less used
Construction Quality
Concrete, durable
Mixed (often drywall + glass)
Final Thoughts: Is an Older Condo Right for You?
If you value space, location, and have the budget (and patience) to potentially modernize, older condos can be great value—especially in a cooling 2025 market. But don’t skip the homework. Ask tough questions, read the docs, and work with a realtor who’s walked this road before (that’s us!)
Older condos aren’t for everyone—but for buyers who know what to look for, they can offer unmatched livability and long-term value. It’s not about the age—it’s about the bones, the budget, and the building’s future.
When you buy a condo in Toronto, you’re not just purchasing a unit—you’re buying into a community with shared responsibilities. That includes footing the bill for repairs to common areas like roofs, parking garages, and elevators. Enter the reserve fund: a legally mandated savings account that every condo corporation must maintain to cover the cost of major repairs and replacements.
Ontario’s Condominium Act requires that this fund be reviewed at least every three years by a professional engineer through what’s known as a Reserve Fund Study. A healthy reserve fund protects owners from sudden “special assessments”—those dreaded lump-sum charges when there’s not enough money saved for big-ticket items.
While there’s no official benchmark, experienced buyers and agents know what to look for. In Toronto, a mid-size condo building should ideally have at least $500,000–$1,000,000 in its reserve fund—more if it’s older or has luxury amenities. Anything substantially below that could spell trouble.
What it tells you
A low reserve balance often means the condo has been under-saving for years. That raises the odds of surprise costs falling to unit owners. It could also mean that major repairs are overdue—or being deferred to avoid raising fees.
What About New Condos?
It’s totally normal for brand-new condos to have relatively low reserve fund balances in their early years. Most developers seed the fund with an initial contribution, but the bulk of future savings comes from monthly fees paid by owners over time.
That said, even in a new building, the initial Reserve Fund Study should outline a detailed contribution schedule that shows the fund growing gradually—and sustainably. Be wary if:
The fund balance stays flat for several years
Contributions are delayed or minimized
There’s no clear funding plan for long-term repairs
A low balance alone isn’t a red flag in year one—but a poorly planned trajectory is.
Red Flag #2 – No Recent Reserve Fund Study
Condo boards are legally required to commission a Reserve Fund Study every three years. If a building hasn’t updated its study in that timeframe, it’s out of compliance.
Even worse: the older the study, the less accurate it is in predicting upcoming expenses. Without current data, you’re flying blind as a buyer.
Some condo boards try to keep monthly fees artificially low by taking a so-called “contribution holiday”—pausing regular payments into the reserve fund. While this may look good on paper, it’s a short-term fix that can lead to long-term pain.
We once had a buyer eyeing a charming boutique condo downtown. The unit was gorgeous. But when we reviewed the financials, the reserve fund was barely funded—just $220,000 for a 25-year-old building with aging infrastructure. Worse still, the Reserve Fund Study warned of upcoming shortfalls of $15,000 per unit. The board had been on a contribution holiday for two years.
The buyer walked. Smart move.
Red Flag #4 – History of Special Assessments
If a building has a history of levying special assessments, take notice. These one-time fees—sometimes $10,000 to $30,000 per unit—usually mean the reserve fund was underfunded when a big repair came due.
Ask to see previous AGM (Annual General Meeting) minutes or speak with the property manager. Frequent assessments may point to chronic mismanagement.
Red Flag #5 – Expensive Repairs Coming, No Money Saved
What’s worse than a low reserve fund? A low reserve and a big-ticket repair right around the corner. We’re talking about:
Elevator replacements
Parking garage membrane repairs
Roof and window overhauls
These aren’t optional. And if the building hasn’t budgeted for them? Owners will be footing the bill.
Pro Tip – What Smart Buyers Should Always Check
Ask to see the Reserve Fund Study
It should be recent, realistic, and detail how the fund will grow over time.
Read AGM minutes for hidden clues
Sometimes future problems are only hinted at in board meeting notes. Don’t skip them.
Have your lawyer review the Status Certificate
Yes, every time. A good real estate lawyer knows exactly where to look.
Final Thoughts: It’s Not Just About the Unit
You might fall in love with the layout, the finishes, or that view—but none of that will matter if your building’s finances are in rough shape.
Spotting these red flags early can save you tens of thousands—and a lot of future stress.
Ready to Buy Better?
Before you commit to a condo, make sure you’re not inheriting someone else’s financial mess. The lawyers we work with, have reviewed hundreds of status certificates—and know what to look for (and when to walk away). Contact us today or send us a message below, for a no-pressure chat about your next move!
Reverse mortgages in Canada have been gaining visibility, especially among seniors looking for ways to unlock the value of their homes without selling. The most recognized option is the CHIP Reverse Mortgage, offered exclusively through HomeEquity Bank.
On paper, it promises tax-free cash with no monthly payments—sounds great, right? But in practice, it’s not always the best solution. Let’s unpack what the CHIP program really offers, and why it may not be the win-win it first appears to be… read on, or watch a recent podcast episode we recorded about the topic:
What Is a CHIP Reverse Mortgage?
A CHIP (Canadian Home Income Plan) Reverse Mortgage allows Canadian homeowners aged 55 or older to borrow up to 55% of their home’s value without giving up ownership or moving out. Unlike a traditional mortgage, you don’t make monthly repayments. Instead, the loan (plus interest) is repaid when you sell your home, move out, or pass away.
Who Qualifies for One?
Age: All homeowners listed on title must be at least 55 years old.
Home Type and Value: Primary residences that meet minimum value thresholds qualify.
Location: Homes in major urban centres like Toronto, Vancouver, and Calgary tend to be eligible, while rural properties may not.
Older home that needs a refresh
How Does It Work?
Once approved, you can receive funds in a lump sum, as recurring payments, or as a combination. You’ll retain full ownership and can use the cash however you choose—whether that’s covering medical costs, funding renovations, or helping out family.
Importantly, no payments are required until the home is sold. However, interest accrues over time, and since you’re not paying it down monthly, it compounds quickly.
Costs and Interest Rates
Interest Rates: Typically higher than traditional mortgage or HELOC rates—often hovering around 7%–9%. Because interest is compounded, the longer the loan remains unpaid, the more it grows—this can quietly erode a large portion of your equity without any monthly statements to remind you.
Fees: Expect to pay out-of-pocket for a home appraisal, independent legal advice, and administrative setup fees. These can collectively total over $2,000 depending on your province and property value.
Closing Considerations: Unlike a traditional mortgage, you won’t see principal reduction over time. In fact, you’ll see the opposite: your debt increases while your equity shrinks—especially in markets where property appreciation has stalled.
In short, you’re borrowing against your future—and that borrowed amount can grow significantly over time. Seniors who don’t fully understand how compounding interest works may be surprised to see how much is owed when the mortgage comes due. It’s essential to crunch the long-term numbers or consult a financial planner before committing.
Repayment and the No Negative Equity Guarantee
You sell your home
You move out permanently (e.g., to long-term care)
You pass away
When any of these events occur, the reverse mortgage must be paid off in full—typically through the proceeds of the home’s sale. If there’s any equity left after repayment, it goes to your estate or beneficiaries. But depending on how long the loan was active, that leftover amount may be significantly less than expected.
CHIP includes a No Negative Equity Guarantee, which ensures that you (or your estate) will never owe more than the fair market value of your home—so long as you’ve complied with the loan conditions (like maintaining the property and paying property taxes and insurance). While this offers peace of mind, it’s important to understand that this guarantee doesn’t protect your remaining equity—it only caps your losses if the loan balance exceeds your home’s value.
Put differently: you won’t go underwater, but you might come out with far less than you—or your heirs—had planned for.
CHIP Reverse Mortgage vs HELOC: Key Differences
Feature
CHIP Reverse Mortgage
HELOC (Home Equity Line of Credit)
Monthly Payments Required
No
Yes (interest-only minimum)
Credit Check
Not required
Required
Interest Rates
Higher (7–9% typical)
Lower (typically 6% or less)
Access to Funds
Lump sum or instalments
As needed, up to a credit limit
Repayment Timeline
Due on sale, move, or death
Monthly; full balance due if closed
Home Ownership
Retained
Retained
Estate Impact
Can reduce inheritance
Minimal if well-managed
Best For
Older homeowners with limited income
Homeowners with strong credit and income
Pros:
No Monthly Payments: Helpful for those on fixed incomes, allowing retirees to stay in their homes without the stress of monthly bills.
Tax-Free Cash: Doesn’t impact Old Age Security (OAS) or Guaranteed Income Supplement (GIS) eligibility, which can be a major relief for low-income seniors.
Flexibility: Funds can be used for anything—from medical expenses to home improvements to helping family members financially.
Cons:
High Interest Rates: These are notably higher than those offered with traditional mortgages or HELOCs. Over time, the cost of borrowing can grow dramatically.
Compounding Debt: Interest is added to the principal regularly, which means you’re paying interest on interest. This can result in a much larger debt than anticipated.
Reduced Estate Value: Because the loan must be repaid from the sale of the home, there’s often less inheritance left for your loved ones.
Better Alternatives May Exist: Depending on your situation, you might qualify for a HELOC with better terms, consider downsizing, or explore other equity-based strategies that preserve more of your wealth.
A Note from Us:
We’ve seen cases where a CHIP mortgage helped a senior stay in their home during difficult times—but we’ve also seen families surprised by how little equity remained when the house eventually sold. In our experience, CHIP reverse mortgages work best as a last-resort option—not a first pick. If you don’t need the funds urgently, it’s worth taking the time to speak with a financial advisor or broker who can walk you through safer, more flexible alternatives. The convenience of no payments today could come with a heavy price tag tomorrow.
Real-Life Example
Meet Joan, a 74-year-old homeowner in East York. Her bungalow was paid off, but rising property taxes and a fixed pension were straining her budget. She accessed 0,000 via a CHIP reverse mortgage to cover renovations and set up an emergency fund.
Five years later, when she moved into assisted living, the mortgage balance had ballooned to $204,000. Her family sold the home for $765,000—still plenty left over, but significantly less than if she’d explored a traditional HELOC at the start.
Alternatives to Consider
Home Equity Line of Credit (HELOC): Often overlooked, HELOCs offer competitive interest rates and allow you to borrow only what you need, when you need it. Unlike a reverse mortgage, you pay interest only on the amount used, and repayment terms are typically more transparent.
Downsizing: Selling your current home and moving into a smaller, more manageable property can free up substantial equity. While emotionally difficult, it often makes financial sense, especially in urban centres like Toronto where detached homes command high prices.
Renting Out Part of Your Home: Turning a basement into a legal secondary suite or creating a laneway home can generate consistent rental income—providing cash flow without giving up equity. Plus, it may even boost your property’s value.
Refinancing with a Traditional Mortgage: If you’re still in good health, under 75, and have decent credit, refinancing with a conventional lender could be a better option. It keeps your interest rate lower, your equity intact, and repayment schedules more predictable.
Government Assistance Programs: Depending on your income and province, you may be eligible for senior-focused grants or home renovation rebates. These programs can cover accessibility upgrades, property tax deferrals, and more—reducing your need to borrow in the first place.
Senior repairing home
FAQ: CHIP Reverse Mortgages
Can I get a CHIP Reverse Mortgage if I still have a mortgage?
Yes, but the existing mortgage must be paid off as part of the reverse mortgage process. CHIP funds are often used to clear any remaining balance before releasing the rest to the homeowner.
Do I need to pass a credit check to qualify?
No, a CHIP Reverse Mortgage does not require traditional income or credit verification. Eligibility is primarily based on age, home value, and property location.
Can I use the funds from CHIP for anything?
Yes. The funds are yours to use however you choose—common uses include supplementing retirement income, paying off debts, renovating the home, or assisting family members financially.
How long does the approval process take?
It typically takes 1 to 3 weeks from application to funding, depending on how quickly documentation is provided and appraisals are completed.
What happens if I outlive the loan?
There is no expiration date on the loan. It remains in effect until the homeowner sells the property, moves out permanently, or passes away. The loan is then repaid from the sale proceeds.
How much can I borrow with a CHIP Reverse Mortgage?
You can typically borrow up to 55% of your home’s appraised value. The exact amount depends on your age, the home’s value and location, and your existing mortgage balance (if any).
Do I still own my home?
Yes, you retain full ownership of your home. The lender places a lien on the property, just like with any mortgage, but title remains in your name.
What happens if the property value drops?
The No Negative Equity Guarantee ensures you or your estate won’t owe more than the fair market value of the home—even if housing prices decline. However, you may still lose a significant portion of your equity to interest costs.
Can I move and keep the CHIP loan?
No. The CHIP Reverse Mortgage must be repaid in full if you sell your home or permanently move out. It is designed for homeowners who plan to age in place.
What kinds of homes qualify?
Detached homes, townhouses, and select condos in urban areas typically qualify. Rural or unusual properties may be ineligible or receive lower borrowing limits.
Is a CHIP Reverse Mortgage safe?
Yes, in terms of regulation and lender reputation—CHIP is offered through HomeEquity Bank, a federally regulated Canadian bank. However, while it’s safe, it’s not always the most financially sound option due to high interest rates and equity erosion over time.
Can I lose my home with a CHIP Reverse Mortgage?
Not if you meet your obligations. You must maintain the property, pay property taxes, and keep it insured. Failing to do so can breach the terms of the loan, potentially leading to foreclosure.
How is a CHIP Reverse Mortgage different from a HELOC?
With a HELOC, you can borrow as needed and only pay interest on what you use—but it requires income verification and regular payments. CHIP doesn’t require payments, but charges higher interest that compounds over time and is repaid when the home is sold or the owner passes away.
Will it affect my government benefits?
No. CHIP proceeds are not considered taxable income and won’t affect OAS or GIS benefits, which makes them appealing to lower-income seniors who want to supplement their cash flow.
Can I repay the CHIP Reverse Mortgage early?
Yes, but there may be early repayment penalties depending on how soon you repay. It’s best to discuss options with a CHIP specialist or financial advisor if you expect to sell or repay the loan within the first few years.
Final Thoughts
CHIP reverse mortgages can be useful—but they aren’t for everyone. If you’re equity-rich but cash-poor, they offer an immediate lifeline. But if you have time to plan and qualify for lower-cost alternatives, it’s worth exploring those first.
Before signing on the dotted line, speak to a trusted financial advisor, mortgage professional or simply contact us!
The right choice will depend on your age, your needs, and your long-term goals. Just because you can unlock your equity doesn’t always mean you should.
For buyers, sellers, and the real estate-curious, the numbers are in—and they’re telling a story of supply, hesitation, and opportunity.
According to the Toronto Regional Real Estate Board’s (TRREB) May 2025 data, GTA home sales dropped 13.3% year-over-year, totaling 6,244 transactions. Meanwhile, new listings surged by 14% with 21,819 homes hitting the market. That pushed active listings up a striking 41.5% compared to last May, with some months earlier this year even seeing inventory jumps north of 70%.
But more choice hasn’t translated to more action. The average home price slid 4% from May 2024, now sitting at $1,120,879. And homes are taking longer to sell—TRREB data aligns with what we’re seeing on the ground: even well-staged, competitively priced homes are sitting longer than they did last spring (nearly 40 days, in total)
Property Type Insights
If 2021 was the year of the condo bidding war, 2025 is shaping up to be the condo cooldown.
Condo sales dropped a sharp 25% year-over-year. In fact, TRREB notes that fewer condos are trading hands now than during the early ‘90s.
Detached homes haven’t fared much better, but not all segments are in the red. In the 416, semi-detached homes and townhouses posted modest gains—up 1.5% and 3.4%, respectively—indicating that more budget-conscious buyers may be shifting focus to multi-family options.
Toronto Skyline with condos
Economic Factors Influencing the Market
So, what’s behind the slowdown? It’s not just prices or mortgage rates—it’s confidence.
Yes, borrowing costs are down slightly compared to last year, and yes, prices have dipped. But the real wildcard appears to be economic uncertainty.
The Bank of Canada has held its benchmark rate at 2.75% for two consecutive months, offering cautious optimism—but with the federal government’s latest Throne Speech reiterating housing promises without delivering timelines, many buyers remain on the sidelines.
Still, not all economic indicators are gloomy. Inflation cooled to 1.7% in April, and with unemployment rising to 7%, a rate cut could be on the table this summer—a move that would be particularly welcome for first-time buyers and those up for renewal.
Rental Market Dynamics
While the resale market softens, Toronto’s rental market tells a different tale. Rents are creeping up month-over-month, with average unfurnished one-bedrooms renting for $2,148. That’s a 1.02% increase from April, though still about $91 cheaper than the same time last year.
The real shift is in inventory—tenants now have far more options. For landlords, that means more competition. For renters, it may mean finally finding a place that ticks all the boxes—without a bidding war.
Navigating the Current Market
We’re in a transitional phase, not a tailspin. And with change comes strategy.
Buyers: You now have time on your side. Properties are sitting longer, sellers are more flexible, and your window to negotiate has widened. But don’t let analysis paralysis cost you a great home—especially with the potential for rate cuts later this year.
Sellers: The days of ‘list Friday, sold Monday’ are behind us—for now. In a crowded market, pricing smart and staging well are your new best friends. We’re advising our clients to lead with value and market with intention.
Everyone else: Whether you’re upsizing, downsizing, or simply trying to make sense of it all, the right advice matters more than ever. Every neighbourhood, property type, and price band tells a different story.
Thinking of buying or selling in this shifting market?
Let’s talk strategy. Whether you’re looking for your next home or need guidance on listing in today’s conditions, we’re here to help – Book a consultation or reach out anytime.
We reached out to Joey to help us with our apartment search. We had a very tight timeline as we needed to move quickly for work. What a pleasant surprise when we saw Joey’s responsiveness! He helped us find a place in just a few weeks, organized the visits with great professionalism, responded exceptionally quickly, and was incredibly kind.
We couldn’t have found a better person to help us. Thank you for everything! Don’t hesitate for a second if you’re looking for a real estate agent to assist you with your projects. We’ll definitely reach out to Joey again in a few years!
It’s a great pleasure to recommend Joey Virgilio. I have known him for 4 years. I was impressed with his professionalism in helping me to rent out 3 apartments and sold one of my condo without any difficulties . He has positive energy and attentiveness with strong communication. He is cheerful, detail oriented, reliable and trustworthy. I have full confidence with him dealing with all my properties.
One of the most common questions Toronto homebuyers ask is: “How much downpayment do I need to buy a house in Toronto?” And the answer? Well, it depends. Your down payment hinges on the price of the home you’re eyeing—and in Toronto, where prices regularly push past $1 million, the amount required can be significantly higher than the national minimums.
Let’s break it down so you can better understand what you’ll need to save.
Minimum Down Payment Rules For Buying in Toronto
Here’s how the Toronto (and Canadian) down payment structure works:
5% on the first $500,000 of a home’s purchase price
10% on the portion from $500,001 to $1,500,000
20% for homes priced over $1.5 million (and no CMHC insurance allowed)
As of 2024, the government increased the insured mortgage limit to $1.5 million—up from the previous $1 million cap—giving buyers in expensive markets like Toronto more breathing room with lower down payment thresholds.
What Does That Mean for Toronto Buyers?
The average home price in Toronto hovers around $1.1 million. That puts many buyers in the zone where they’ll need to put down at least $80,000 to $100,000 (a mix of 5% and 10%).
But if you’re buying above the $1.5 million mark, it’s 20% minimum—meaning a $300,000 down payment on a $1.5M home. That’s a steep climb for most buyers, especially first-timers. That’s why we often advise clients to get pre-approved early and understand what their budget truly allows.
CMHC Insurance: When It Applies and What It Costs
If your down payment is less than 20%, your mortgage must be insured through the Canada Mortgage and Housing Corporation (CMHC) or similar providers. This insurance protects the lender—not you—but is required to secure your mortgage.
Here’s what it typically costs:
4.00% of your loan if you’re putting just 5% down
3.10% if you’re putting 10%
2.80% if you’re putting 15%
You’ll also pay Ontario provincial sales tax on the premium (not added to the mortgage). You can use a CMHC calculator to estimate your costs.
Common Questions from Toronto Buyers
These are the questions that come up most often during buyer consults:
“Can I use gifted money?” Yes. You’ll need a signed letter confirming the funds are a gift and not repayable.
“I’m self-employed—does that change things?” Lenders will want to see at least two years of business income. You might face stricter scrutiny, but it’s not a deal-breaker.
“Are there any programs to help me?” Yes! And we’ll cover them next.
Down Payment Assistance Programs
If saving for a down payment feels out of reach, you’re not alone—and fortunately, there are programs specifically designed to help Toronto buyers get into the market:
First-Time Home Buyer Incentive (FTHBI): This shared equity program lets the federal government contribute 5%–10% of your purchase price. You repay the same percentage later, based on your home’s future value.
Home Buyers’ Plan (HBP): Withdraw up to $35,000 from your RRSP ($70,000 as a couple) tax-free to buy your first home. You’ll have 15 years to pay it back.
First Home Savings Account (FHSA): A new account that allows you to save up to $8,000/year ($40,000 lifetime) tax-free. Contributions are tax-deductible, and withdrawals for a qualifying home purchase are also tax-free.
Land Transfer Tax Rebates: First-time buyers can claim a rebate of up to $4,000 from Ontario’s LTT and up to $4,475 from Toronto’s municipal LTT—for a potential $8,475 in savings.
These programs can shave thousands off your upfront costs and make homeownership far more attainable. Each has its own fine print, so it’s best to chat with a mortgage specialist or real estate professional to see which ones you qualify for.
Other Cost Considerations Beyond the Down Payment
Your down payment isn’t the only cost you’ll need to budget for. When buying a home in Toronto, a handful of additional expenses can add up quickly:
Legal Fees: Typically range from $1,500 to $2,500 depending on your lawyer and the complexity of the transaction. This covers title searches, document review, registration, and disbursements.
Land Transfer Tax (LTT): Ontario and Toronto both charge LTT. Use a land transfer tax calculator to estimate your exact amount.
Home Inspection: A professional inspection usually costs $400 to $600 and is worth every penny for peace of mind.
Appraisal Fee: If required by your lender, expect to pay about $300 to $500.
Title Insurance: Often recommended and sometimes mandatory—costs roughly $250 to $500.
Moving Costs: Whether it’s a DIY truck rental or a full-service move, budget at least $500 to $2,000.
Adjustments and Prepaid Costs: These include utilities, property taxes, and condo fees that the seller may have prepaid. You’ll need to reimburse them for your share at closing.
Having a well-padded buffer—say 1.5% to 4% of your home’s purchase price—can help cover these expenses without stress.
Final Thoughts — Planning Your Path to Homeownership
In a city like Toronto, where real estate prices can feel overwhelming, planning ahead is your best ally. Know the numbers. Use the tools. And contact us to help build a strategy that works for your budget and timeline.
Need help estimating your down payment and closing costs? Let’s talk. A smart plan today could be the key to owning tomorrow.
Let’s talk about one of the biggest questions plaguing buyers (right after “Do we really need a powder room on the main floor?”): fixed or variable mortgage?
It’s not just a financial decision—it’s emotional. It’s about your risk tolerance, your long-term goals, and what kind of sleep you want at night. And in Canada’s current rate environment, it’s more relevant than ever.
The Basics: What’s the Difference?
Let’s start with the basics.
A fixed-rate mortgage locks in your interest rate for the entire term. You get predictability. Your payment doesn’t change, which makes budgeting a breeze. Whether rates skyrocket or sink, your monthly payment stays the same.
A variable-rate mortgage fluctuates with the lender’s prime rate, which is tied to the Bank of Canada’s overnight rate. That means your interest costs—and sometimes your payment—can rise or fall during the term. Some lenders offer variable products with fixed payments, where more or less goes toward the principal depending on rates.
What’s Happening in 2025?
As of spring 2025, the Bank of Canada has already started trimming rates after a prolonged tightening cycle. Inflation has cooled somewhat, and there’s widespread speculation that rates will ease further into 2026.
That’s got many Canadians thinking: should I ride the wave down with a variable rate, or lock in now just in case we’re in for more surprises?
When Fixed Rates Make Sense
Choose a fixed rate if:
You’re risk-averse and don’t want to gamble with future payments.
You’re stretching your budget and can’t afford payment fluctuations.
You expect interest rates to rise again, or at least stay high.
You need certainty—say, you’re buying your first home and just want one less thing to worry about.
Fixed is the vanilla ice cream of mortgages. Safe, stable, and not likely to ruin your day.
When Variable Rates Might Be the Smart Play
Consider a variable if:
You have room in your budget and can handle short-term bumps.
You believe rates will drop over the next 12–24 months.
You want to take advantage of prepayment privileges (variable mortgages often come with lower penalties).
You’re planning to sell or refinance in the near future and don’t want to get dinged with steep fixed-rate penalties.
Some of the savviest investors and seasoned buyers opt for variable—but they’re also the types who read Bank of Canada statements like bedtime stories.
Reality Check: What About Hybrid Mortgages?
If you’re feeling indecisive (no shame!), you could split the difference. Some lenders offer hybrid mortgages, where part of your loan is fixed and part is variable. It’s a bit more complex, but could offer a best-of-both-worlds solution for buyers with one foot in each camp.
Mortgage Strategy Should Match Your Life Strategy
Maybe you’re a new homeowner with tight margins. Maybe you’re upgrading and renting out your old condo. Maybe you’re a serial mover chasing the next hot neighbourhood. Your mortgage should match your life—not just market forecasts.
Here’s the truth: both fixed and variable rates can be the “right choice” depending on your situation.
What We’re Telling Clients in Toronto
Right now, many of our buyers are leaning toward shorter-term fixed mortgages—think 1 to 3 years. That way, they lock in predictability but keep the door open to refinance if rates drop.
Others are sticking with variable rates with the confidence that they’ll see savings over the next few years—especially if they’re not planning to break the mortgage early.
The key? Talk to a mortgage broker you trust. Get the real numbers, not just the sales pitch. We’ve worked with some excellent brokers across Toronto, and we’re happy to introduce you.
Final Thought
Listen, the decision between fixed and variable isn’t just about the math—it’s about peace of mind. Don’t pick the product that looks smartest on paper. Pick the one that lets you sleep well and move forward confidently.
Want help running the numbers or connecting with a great mortgage pro? Reach out to us here and we’ll guide you every step of the way.
