The First Home Savings Account (FHSA) has now been around long enough that most first-time buyers have heard of it. But in 2026, we’re still seeing the same mistake play out over and over again: people waiting to open an FHSA because they don’t feel “ready” to buy yet.
That hesitation is understandable. Toronto prices are high, timelines feel uncertain, and many renters assume they’ll deal with the FHSA later. The problem? Waiting doesn’t just delay your savings — it quietly limits how much tax-advantaged room you’ll ever have access to.
According to the Canada Revenue Agency, FHSA contribution room only begins once the account is opened — unused room doesn’t magically backfill for years you waited. The FHSA hasn’t changed in 2026. But misunderstanding how it works can still cost you tens of thousands in future buying power.
What Are the FHSA Contribution Limits in 2026?
The contribution rules for 2026 remain the same as prior years (unlike a TFSA), but they’re worth restating clearly.
You can contribute up to $8,000 per calendar year, with a lifetime maximum of $40,000 per person. Contributions are tax-deductible, similar to an RRSP, and qualifying withdrawals to buy a first home are completely tax-free, similar to a TFSA.
The CRA confirms these limits continue to apply in 2026, with no increase to annual or lifetime caps. That combination alone makes the FHSA one of the most powerful tools Ottawa has ever created for first-time buyers. But the real leverage comes from when you open it.
The Carryforward Rule Most Buyers Get Wrong
This is where things tend to go sideways. FHSA contribution room does not automatically accumulate just because the program exists. Your contribution room only begins once you actually open an FHSA.
How FHSA Carryforward Really Works
If you open an FHSA, any unused annual contribution room carries forward to future years. If you don’t open one, there is nothing to carry forward. That means you can’t retroactively claim FHSA room for years you waited on the sidelines.
Opening Early vs Waiting: A Simple Example
Consider two identical buyers. Buyer A opens an FHSA in 2024 but doesn’t contribute right away. Buyer B waits until 2026 because buying still feels far off.
By 2026:
Buyer A has $24,000 of available contribution room
Buyer B has just $8,000
Same income. Same savings habits. Very different outcomes — entirely because of timing. Opening the account early doesn’t force you to contribute immediately. It simply starts the clock.
Why Starting Early Matters (Even If Buying Feels Years Away)
We hear the same refrains all the time:
“Prices might come down.” “We’ll save more once income increases.” “We’re not buying for a while anyway.”
All reasonable thoughts. But the FHSA works best precisely because it allows you to plan ahead of certainty.
Starting early benefits renters who expect their incomes to rise, couples coordinating two separate buying timelines, and buyers who may not know yet whether their first purchase will be a condo, a townhouse, or something else entirely.
You’re not committing to a purchase date. You’re preserving future flexibility.
How the FHSA Fits Into a Real Toronto Buying Plan
In practice, most Toronto buyers don’t rely on a single tool. The FHSA can be used alongside the RRSP Home Buyers’ Plan, allowing buyers to stack tax advantages in a meaningful way. Individually, that can translate into a significant down payment boost. For couples, the numbers become even more impactful when both partners plan early.
This is where we often see the difference between buyers who feel stretched and buyers who feel prepared — not because they timed the market perfectly, but because they structured their savings early.
What Happens If You Don’t End Up Buying?
Another common hesitation is the fear of locking money into something too specific. If you don’t end up buying a qualifying home, your FHSA can be rolled into your RRSP or RRIF without triggering tax consequences. There’s no penalty for changing plans, and no obligation to buy simply because you opened the account. That’s why, from a planning perspective, the downside risk of opening early is extremely limited.
The Bottom Line for First-Time Buyers
Opening an FHSA early doesn’t lock you into a decision. It simply gives you more options later — more contribution room, more tax efficiency, and more control over how and when you buy.
If you’re a renter thinking about buying in Toronto in the next few years, the smartest move often isn’t waiting for the perfect moment — it’s putting the right structure in place early.
Thinking about your first purchase or trying to map out a realistic buying timeline? We help Toronto buyers plan years ahead, not just shop when listings pop up. Start with a conversation and build the strategy before the pressure kicks in.
In most Canadian markets, saving for a down payment is a challenge. In Toronto, it’s often the challenge!
One of the biggest hurdles for first-time buyers is assembling a meaningful down payment without draining every dollar of after‑tax income. That’s where the First Home Savings Account (FHSA) changes the equation.
This guide breaks down how the FHSA actually works, how buyers are using it in the real world, and where it fits alongside tools like the RRSP Home Buyers’ Plan.
What Is the First Home Savings Account (FHSA)?
At its core, the FHSA is a registered savings account designed specifically for first‑time homebuyers. What makes it unique is that it combines the best features of two familiar accounts:
RRSP-like deductions when you contribute
TFSA-like withdrawals when you buy
You get a tax deduction going in, and you don’t pay tax coming out — provided the funds are used to buy your first home.
That combination is what makes the FHSA one of the most powerful buyer-focused tools the federal government has ever introduced.
How FHSA Contribution Rules Actually Work
This is where most of the confusion starts.
You can contribute up to $8,000 per year
You can contribute up to $40,000 total over your lifetime
You must be at least 18 and a first-time buyer to open one
One important nuance: contribution room only starts accumulating after you open the account. Unlike a TFSA, you don’t get retroactive room if you wait years to open it.
That’s why we often suggest opening an FHSA as soon as you’re eligible — even if you don’t plan to fund it immediately. You’re essentially starting the clock.
In a Toronto context, that early start matters. Few buyers are maxing this account overnight, but spreading contributions over time — and doing so with pre-tax dollars — meaningfully reduces the amount of cash that needs to be saved the hard way.
Who Qualifies as a First-Time Buyer (and Who Accidentally Doesn’t)
The definition of “first-time buyer” is more flexible — and more technical — than many people realize. And with the FHSA, when and how you qualify matters just as much as if you qualify.
You’re generally considered a first-time buyer if you did not own and live in a home as your principal residence in the current year or any of the previous four calendar years. This is often referred to as the four-year rule.
Here are the key nuances that tend to catch buyers off guard:
Four-year rule: You may still qualify even if you owned a home earlier in your life, as long as you have not occupied a home you owned as your principal residence in the past four years.
Timing matters: The eligibility test applies at the time you open the FHSA, not just when you later make a qualifying withdrawal. If you open an FHSA too early — before you re‑qualify — you may not be eligible at all.
Spouses and common-law partners: If you have a spouse or common-law partner, the rules look at whether either of you lived in a home owned by either partner during the eligibility period. This can unintentionally disqualify renters who moved into a partner’s owned home.
Partial ownership exceptions: In limited situations, acquiring less than a 10% interest in a property may not disqualify you. That said, the FHSA is generally designed to support buyers who have not meaningfully owned or lived in a home during the relevant timeframe.
The practical takeaway is this: if you’ve been renting for the past five years, you may still qualify as a first-time buyer for FHSA purposes — even if you owned a home earlier in your life.
Because these rules are precise and timing-sensitive, this is one area where getting advice before opening an FHSA can make a meaningful difference.
FHSA vs TFSA vs RRSP: Which One Comes First?
A common misconception is that the FHSA replaces other savings accounts. It doesn’t.
Each account serves a different role:
FHSA: Purpose-built for a first home, combining tax deductions and tax-free withdrawals
TFSA: Flexible, liquid, and ideal for shorter-term goals or emergency buffers
RRSP: Long-term retirement planning, with optional access through the Home Buyers’ Plan
For higher-income buyers who are confident they’ll purchase within the next decade, the FHSA often rises to the top of the priority list. For lower-income buyers or those with uncertain timelines, flexibility may matter more.
There’s no universal order — only an order that fits your income, timeline, and risk tolerance.
FHSA vs TFSA: A Side-by-Side Comparison
Feature
FHSA
TFSA
Primary purpose
Saving for a first home
Flexible savings for any goal
Contribution tax treatment
Contributions are tax-deductible
Contributions are not deductible
Withdrawal tax treatment
Qualifying home purchases are tax-free
All withdrawals are tax-free
Annual contribution limit
$8,000
Set annually by the federal government
Lifetime contribution limit
$40,000
No lifetime cap (annual limits accumulate)
Eligibility
First-time homebuyers only
Any Canadian resident 18+
If you don’t buy
Can roll into RRSP or RRIF
Continues as a TFSA
Best used for
Down payment planning
Flexibility, emergencies, short-term goals
FHSA + RRSP Home Buyers’ Plan: Where the Real Leverage Shows Up
The FHSA becomes especially powerful when paired with the RRSP Home Buyers’ Plan (HBP).
Under current rules:
You can withdraw up to $40,000 from your FHSA tax-free
You can withdraw up to $60,000 from your RRSP under the HBP (with repayment requirements)
That’s up to $100,000 per person, or $200,000 per couple, potentially sourced largely from pre-tax income.
In Toronto, where down payments are often the primary obstacle — not qualifying for the mortgage — this stacking approach can be the difference between waiting indefinitely and buying strategically.
FHSA Explained on Video: A Walkthrough for First-Time Buyers
An FHSA is just a container. What you earn inside it depends on how the funds are invested.
Most institutions allow FHSA funds to be held in:
Cash
GICs
ETFs
Mutual funds
Stocks
The right mix depends largely on timing. Buyers planning to purchase within a year or two often stay conservative. Those with longer horizons may accept more volatility in exchange for growth.
The key is aligning investment risk with purchase certainty — not chasing returns at the expense of flexibility.
What Happens If You Don’t Buy?
This is another area where the FHSA is often misunderstood.
If you don’t end up buying:
You can keep the FHSA open for up to 15 years
Any unused balance can be rolled into an RRSP or RRIF without triggering tax
In other words, the money doesn’t disappear. The account simply transitions from a home-buying tool into a retirement-planning tool.
That optionality is one of the FHSA’s most underrated features — especially for younger buyers whose plans may evolve.
It’s A Tool, Not a Shortcut
The FHSA doesn’t replace discipline, income, or patience. But for buyers who plan early — and use it intentionally — it can meaningfully lower the barrier to entry.
In a city like Toronto, where every dollar of after‑tax income matters, using the right accounts in the right order can shave years off the buying timeline. The challenge isn’t knowing that the FHSA exists — it’s knowing when to open it, how to fund it, and how it fits alongside RRSPs, TFSAs, and real market pricing.
If you’re a first‑time buyer trying to map out your next move — whether that’s buying this year or planning two to five years out — this is exactly the stage where a bit of upfront strategy pays off.
We’re always happy to walk through how the FHSA fits into your broader buying plan, and how it connects to what’s actually happening in Toronto’s market today.
Choosing the right neighbourhood in Toronto has always been about trade-offs — house versus location, commute versus lifestyle, budget versus long-term upside. For families, though, one factor consistently rises to the top: schools.
Each year, we see buyers reorganize their entire home search around secondary school catchments, often years before their children will actually attend. The reason is simple: strong schools don’t just shape education outcomes — they shape demand, pricing, and resale stability.
Why School Rankings Matter More Than Ever for Toronto Home Buyers
In competitive markets, school quality acts as a price floor. Even during slower real estate cycles, neighbourhoods anchored by top-performing schools tend to see:
more consistent buyer demand
faster absorption when listings hit the market
less volatility during broader market corrections
We see this play out repeatedly in Toronto. Families will compromise on square footage, renovation level, or even transit access — but they rarely compromise on schools once that priority is set. And because catchments are finite, timing becomes everything.
How the Fraser Institute Ranks Ontario High Schools
The Fraser Institute’s rankings are based on a school’s Overall Rating out of 10, which is derived primarily from province-wide EQAO data. In plain terms, the rating reflects:
Grade 9 mathematics performance
Ontario Secondary School Literacy Test (OSSLT) results
consistency of outcomes across student groups
For this article, we’ve used only the 2023/2024 Overall Rating and filtered strictly to Toronto-based secondary schools. Five-year averages and trend indicators were intentionally excluded to keep this a clean snapshot of current performance.
Important context: rankings are a starting point — not a verdict. They don’t measure arts programs, school culture, or student fit. But from a buyer’s perspective, they remain one of the clearest indicators of where long-term demand concentrates.
The Best Toronto High Schools in 2025 (Fraser Institute Rankings)
Below are the top-ranked Toronto secondary schools, sorted strictly by their 2023/2024 Overall Rating. Ties are preserved exactly as published.
Consistently ranked among the very best in the province, St. Michael’s Choir School is a specialized institution with elite academic outcomes. Its downtown location means families often face a different housing equation — condo living versus traditional family homes — but for many, the academic reputation outweighs the trade-offs.
From a real estate standpoint, proximity to specialty schools like this often sustains demand for larger downtown condos and townhomes that might otherwise see more fluctuation.
Ursula Franklin Academy is a prime example of how alternative education models can still deliver exceptional academic results. Its consistent ranking keeps Seaton Village and surrounding west-end pockets highly competitive.
We regularly see buyers here accept smaller homes or older housing stock simply to secure long-term access to this school environment.
Cardinal Carter challenges the assumption that only neighbourhood-based schools drive demand. As a specialty arts school with strong academics, it attracts families city-wide.
For buyers, this opens up flexibility: rather than overpaying in a specific catchment, families can sometimes buy more house in adjacent North York neighbourhoods while still accessing top-tier education.
Neighbourhood: Bloor West Village / High Park North
Bloor CI anchors one of Toronto’s most walkable, family-oriented areas. Its academic performance reinforces long-term price stability throughout Bloor West Village and nearby streets.
Homes here rarely linger on the market, particularly those within easy walking distance of the school.
Leaside remains one of Toronto’s most school-driven neighbourhoods. The combination of strong academics, community feel, and housing stock keeps demand consistently high.
Buyers often face a clear decision here: renovate an older home or stretch for a turnkey option — either way, competition is the norm.
Few neighbourhoods demonstrate the connection between schools and pricing as clearly as Lawrence Park. LP CI’s long-standing academic reputation supports some of the city’s highest detached home values.
Families buying here are often thinking a decade ahead, not just about schooling, but about long-term generational value.
Malvern offers a compelling east-end alternative. Strong academics combined with relative affordability (by Toronto standards) make this area especially attractive for families priced out of the city’s traditional school hubs.
This is one of the few pockets where buyers can still balance school quality with meaningful space.
Humberside’s consistency reinforces demand throughout High Park and surrounding streets. Inventory here remains tight, and listings often attract multiple interested families within days.
As a French-language public school, Collège Français draws families from across the city. Its presence helps support demand for downtown family-sized condos and townhomes, particularly among bilingual households.
Quiet, consistent, and often overlooked, York Mills CI anchors one of Toronto’s most stable luxury pockets. Low turnover and long-term ownership are defining features of this area.
Strong Performers Toronto Buyers Actively Target (Overall Rating 8.5–8.9)
Not every buyer needs — or wants — to compete for a 9.0+ catchment. In practice, many Toronto families deliberately target strong-performing schools just below the very top tier, where academic outcomes remain excellent but housing options can be more flexible.
These schools consistently come up in real-world buyer conversations, especially when balancing budget, space, and commute.
Earl Haig is one of those schools that buyers bring up almost immediately when they’re looking in North York. Strong results, a well-known reputation, and a neighbourhood that offers everything from condo living to detached homes make it a practical (and popular) target.
From a real estate standpoint, the Willowdale East market tends to reward buyers who move early. Inventory can be seasonal, and the best family homes often draw attention fast.
Neighbourhood: North York (Don Valley / Bayview Village-adjacent pocket)
A.Y. Jackson is a great example of a school that performs at a high level without requiring “top-tier catchment pricing” across every street. For buyers, that can translate into more options — especially if you’re open to different home styles (bungalows, side-splits, newer infill, or condo-townhome alternatives).
It’s a smart target for families who want strong academics and a straightforward commute into the core.
Neighbourhood: Bedford Park / Lawrence Manor / Allenby area
William Lyon Mackenzie is frequently on the shortlist for midtown buyers who want a balance of strong school performance and a family-friendly neighbourhood vibe.
Real estate-wise, this pocket can feel like a “best of both worlds” play: close enough to the core to keep lifestyle options wide open, but with more family housing stock than downtown. That said… when a good listing hits, buyers notice.
Riverdale CI consistently attracts families who want strong academics while staying connected to the east-end lifestyle — parks, walkability, and a community feel that’s hard to replicate.
From a buyer perspective, Riverdale can be competitive for a different reason: turnover is low. When the right home shows up, there’s often a line of families who have been waiting.
Neighbourhood: Etobicoke (Richview / Central Etobicoke)
Richview is a recurring “value versus location” conversation for buyers. Etobicoke gives families a bit more breathing room — often more space for the budget — while still keeping access to strong school performance.
If you’re comparing west-end Toronto versus central Etobicoke, Richview is one of the schools that can tip the scales for families who want a bigger home without leaving the city.
Bishop Allen is a strong option that often appeals to families prioritizing structure, community, and consistent academic performance — while also wanting quick access to subway lines and west-end amenities.
For buyers, the nearby housing mix (condos, townhomes, and detached options as you move outward) makes this a flexible target. It’s a good reminder that you don’t always have to choose between lifestyle and school strategy.
Why this tier matters for buyers
Neighbourhoods anchored by these schools often offer:
slightly more inventory depth
better value per square foot
less emotional bidding pressure compared to the 9.0+ tier
For many families, this range represents the best balance between academic confidence and long-term affordability.
What These Rankings Mean for Toronto Home Prices
Neighbourhoods tied to top-ranked schools behave differently in the market. Even when conditions soften:
sellers hold firmer on pricing
buyer demand rebounds faster
listings see fewer failed offer dates
In many cases, waiting for “better timing” simply means paying more later once competition returns.
Important Caveats for Parents Using School Rankings
Rankings don’t capture everything. They don’t measure:
arts or athletics depth
student support culture
individual learning styles
Catchment boundaries can also change, and enrolment caps can affect access. This is why we always recommend verifying school eligibility before finalizing a purchase.
Buying a Home With School Catchments in Mind — Our Advice
The most successful school-focused buyers start planning earlier than they think they need to. Understanding neighbourhood supply, future boundary risks, and realistic budget trade-offs can make the difference between settling — and securing the right fit.
Final Thoughts
Great schools shape more than education — they shape neighbourhoods, pricing, and long-term value. For families buying in Toronto, understanding where academic performance and real estate intersect is one of the smartest moves you can make.
If you’re considering a move and want to align your home search with school strategy, we’re always happy to help you think it through – contact us by sending us a note below!
Why Church Lofts Have Become Toronto’s Most Sought‑After Homes
Toronto has no shortage of condo options—but church lofts? Those are in a category of their own. Their appeal comes from a blend of history, architecture, and sheer scarcity. With only a limited number of former churches converted into housing, the supply stays tight while demand stays strong. It’s why these spaces attract everyone from creatives to downsizers looking for something with soul.
If you’re just starting your search, our full roundup of Church Loft Conversions in Toronto is a great place to explore what’s out there.
Explore Current Church Loft Listings in Toronto
One of the best ways to get a feel for what church loft living is really like is to browse the latest listings on the market. Because these homes are so rare, availability changes quickly—but when a special one hits the market, it’s worth seeing in person.
What Makes a Church Loft Different From a Regular Condo?
Authentic Character You Can’t Recreate
Church lofts carry features modern buildings simply don’t build anymore—vaulted ceilings, exposed beams, century-old brickwork, stained-glass windows, and dramatic open spaces. Some great examples across the city include:
Every one of these buildings has a completely different feel, which is part of the magic—and part of the challenge. No two floor plans are alike.
Unit Variability (And Why No Two Lofts Are the Same)
One of the most exciting—and occasionally challenging—aspects of buying a church loft is that layouts follow absolutely no rules. Instead of predictable floor plans stacked neatly across a tower, each unit is shaped by the original architecture of the church itself. That means you might find a mezzanine bedroom suspended above the living area, a kitchen tucked beneath century-old trusses, or a dramatic wall of restored brick that turns a simple hallway into a focal point. Windows may appear in unconventional places—arched, circular, stained glass, or set high above eye level—each contributing a different quality of natural light.
Rooms may have unexpected proportions, sweeping ceiling heights, cozy alcoves, or angled corners you won’t see in a typical condo. For buyers who love character, these quirks aren’t drawbacks—they’re the whole point. Every unit tells a story, and the individuality baked into these conversions is exactly what makes living in a church loft feel so personal and one-of-a-kind.
Victoria Lofts – 152 Annette St
Heritage Considerations Every Buyer Should Understand
Heritage Designation Levels & What They Mean
In Toronto, many church loft conversions fall under the City’s Heritage Register, which shapes how the building can evolve over time. A listing on the Heritage Register doesn’t freeze a property in place, but it does mean that any proposed changes—especially to the exterior—must be reviewed by Toronto’s Heritage Planning team.
Elements like original brickwork, arches, rooflines, stained-glass windows, and stone detailing are often protected, ensuring the character of the streetscape remains intact. Some buildings are fully designated, meaning even certain interior architectural features may be preserved, while others are simply listed, giving the City the ability to evaluate alterations before they happen. For buyers, the key takeaway is simple: renovations may still be possible, but they require proper approvals and often specialized trades familiar with heritage conservation.
Renovation Restrictions (Especially in True Conversions)
Heritage renovations require time, patience, and often specialized trades. Stained-glass restoration, masonry conservation, and wood beam reinforcement are not your average condo reno projects. Buyers planning upgrades should understand the process early.
The Structural Checklist: What to Inspect Before You Offer
Rooflines, Trusses & Insulation
Those soaring ceilings come with real engineering behind them. Some lofts have spray-foam insulation; others retain original rafters with added thermal layers. Temperature balance can vary from unit to unit—worth checking during a showing.
Windows, Stained Glass & Maintenance Costs
Stained-glass windows are stunning, but repairs can be pricey. Replacement isn’t always straightforward if the building is protected under the Heritage Act. A healthy reserve fund is essential.
Plumbing, Electrical & Mechanical Systems
Most conversions overhaul major systems, but not all do it equally. Inspectors should look for:
Updated wiring and electrical panels
Modern plumbing stacks
Recently serviced HVAC systems
Because these buildings are small, many rely on boutique contractors, which can increase costs.
West 40 Lofts – 40 Westmoreland Ave
Understanding the Condo Corporation in a Church Loft
Church loft conversions in Toronto almost always operate as boutique condo corporations, which means their financial structure and long‑term planning can look very different from what buyers might expect in a larger, more conventional condo.
With fewer residents contributing to the reserve fund, these buildings often have tighter budgets and a higher sensitivity to upcoming repairs—especially when it comes to heritage materials like brick masonry, stained-glass windows, or century‑old rooflines that require specialized trades. A close review of the status certificate becomes essential, not just to understand the reserve fund balance, but to get clarity on past or pending special assessments, insurance costs, and any major restoration work scheduled for the next few years.
Parking and storage can also be limited, since most churches weren’t originally designed with underground infrastructure in mind. Altogether, buyers should think of these buildings as small communities: charming, character-filled, and deeply unique—but requiring a more thoughtful look at the condo corporation’s health before making an offer. Some owners rely on street permits or creative solutions.
Market Trends: How Church Lofts Perform Over Time
Why Scarcity Drives Value
Church conversions are rare—and they aren’t building more of them. That limited supply keeps values strong and resale demand healthy. Even in slower markets, unique lofts tend to outperform because they attract a very specific buyer pool.
How TorontoLivings Has Seen This Play Out First-Hand
When the right loft hits the market, it moves quickly. Serious buyers should have financing ready and a strong grasp of the building’s history and financials.
Final Thoughts: Why Church Lofts Remain One of Toronto’s Most Captivating Home Types
Church lofts sit at the intersection of history, architecture, and personal expression. They’re rare, dramatic, and deeply individual—perfect for buyers looking for something that feels less like a condo and more like a story.
If you’re ready to explore the best lofts available today, start with our full guide to Church Loft Conversions in Toronto or reach out—we’d be happy to walk you through the truly special ones!
According to the calendar, we’re officially in “hot chocolate and thicker jackets” season… and according to November’s numbers, the Toronto real estate market has also settled into full fall mode.
November wasn’t dramatic or chaotic. Instead, it felt like a market catching its breath—slower pace, fewer listings, and more thoughtful buyers. But tucked inside the overall cool-down was a standout story: freehold homes between $1M and $1.5M were buzzing with real activity. Let’s break down what actually happened.
What Happened in the Toronto Market This November?
Sales Slipped—But It’s Not the Plot Twist You Might Expect
Toronto recorded 5,010 sales, an 18.38% drop from October. On the surface, that might look like a steep fall… but November is historically a slower month as buyers shift into “holiday mode” and sellers decide to wait out the year.
The interesting part? Even with fewer deals happening, conversations with buyers stayed lively. This wasn’t a demand problem—it was a “let’s be picky” moment.
New Listings Dropped Harder Than Sales
Only 11,134 new listings hit the market in November—a sharp 30.7% drop. That’s the real story of the month. Sellers stepped back in a big way, which meant that buyers who were actively shopping suddenly had fewer homes to choose from.
When new listings fall faster than sales, the market tightens. And that’s exactly why prices held steady.
Even Active Listings Declined More Than Usual
Active inventory fell to 24,549—nearly 12% lower month-over-month.
Buyers who remained committed in late fall described the experience as “I’m ready… but there’s nothing to see.” Anyone who has been through a November search knows the feeling.
Prices Held Steady (All Things Considered)
Average Price: $1,039,458 (Down just 1.4%)
You might expect a bigger price swing with slower sales, but Toronto homes proved resilient. Prices barely budged and stayed right in line with where they’ve been for most of the year.
Think of it as the market saying: “Relax, nothing dramatic happening here.”
Days on Market Hit Their Longest Stretch This Year
The ‘Days on Market” rose to 56 days, the slowest pace we’ve seen in 2025.
This doesn’t mean homes aren’t selling—it means buyers are taking their time, comparing options, and running the numbers twice. But again… this was not the case everywhere.
The Breakout Segment: Freehold Homes Between $1M and $1.5M
Here’s where things get fun.
Detached & Semis in This Range Moved Faster Than the Market
Despite the overall slowdown, this pocket of the market stayed lively. In the 416:
Detached homes saw 600 sales
Semis hit 209 sales
Not record-breaking, but the energy was noticeably stronger. Freeholds that were move-in ready, offered rental potential, or were located near transit didn’t sit long.
Why? Because this price band continues to hit that Toronto sweet spot: attainable for move-up buyers, attractive to investors, and competitive enough to avoid the bidding-war chaos of earlier years.
Condos and Townhouses: Softer Demand, Stable Pricing
Condos Took a Breath After October’s Spike
Condo sales dipped to 880 (a 17.9% decline). No surprise here—condo buyers tend to be more rate-sensitive, and many are waiting for early 2026 announcements before locking in.
Yet, the average condo price actually inched up to $701,259. That’s the stability story again.
Townhouses Were a Mixed Bag
Townhouses landed at an average price of $870,793, a modest 2.2% dip.
Still, they continue to appeal to buyers who want the space of a freehold but not the price tag of one. The townhouse segment is very much alive—it’s just quieting down with the rest of the market.
Big Picture Trends Shaping Toronto’s Market Right Now
Mortgage Rates Are Finally Helping
After the Bank of Canada’s gradual cuts, many 5-year fixed rates now sit in the mid-4% to low-5% range. Buyers aren’t sprinting back, but confidence is noticeably higher than in 2023–2024.
If you talk to anyone who started a pre-approval a year ago and renewed it recently, they’ll tell you the same thing: “This feels manageable again.”
Consumers Are More Hopeful—But Still Cautious
Renewals at higher rates are still holding some would-be sellers back, especially those locked into ultra-low pandemic mortgages.
But newcomers, families, and investors are fueling the activity we do see—especially where rental income or multi-unit potential exists.
Policy Shifts Are Playing a Quiet but Important Role
With Bill 60 improving LTB timelines and clarifying the N12 process, landlords and investors are planning ahead with more certainty.
Meanwhile, Toronto’s ongoing gentle-density permissions are quietly changing how buyers view freehold lots—especially those with laneway or basement suite potential.
What Buyers Should Take Away From November 2025
Where the Opportunities Are
Freeholds under $1.5M: competitive, but not overwhelming.
Condos: stable prices + motivated sellers = room to negotiate.
If confidence rises, expect buyers to move from browsing to buying.
Thinking of Buying or Selling?
Whether you’re upsizing, downsizing, or investing, November’s data tells us the same thing: this is still a market with opportunities—just not the loud, dramatic kind.
After a quieter summer and a cautious start to the fall market, October delivered the clearest sign yet that Toronto’s real estate landscape is stabilizing. Sales activity continued to improve, inventory eased from September’s surge, and prices held firm month-over-month. While the market is not roaring forward, October showed a meaningful shift in sentiment as buyers re-engaged and competition tightened slightly across several segments.
Below is a full breakdown of how the market performed and what it means for buyers and sellers heading into the final stretch of the year.
October at a Glance
Sales: Up 9.76% month-over-month
New Listings: Down 16.57% month-over-month
Active Listings: Down 5.40% month-over-month
Average GTA Price: Down 0.47% month-over-month
Average Days on Market: 50 days (down from 51 in September)
October 2025 Toronto Real Estate Market Update
GTA Market Overview
October delivered a second consecutive month of sales growth, rising nearly 10% from September. Buyers who had previously stepped to the sidelines over the summer began returning, encouraged by improved affordability expectations, increased negotiation power, and a sense that prices may have reached a temporary floor after months of softening.
Inventory also pulled back in October. New listings dropped more than 16% month-over-month, and active listings declined just over 5%. While supply remains higher than last year, the month-over-month easing helped bring the market closer to balance. With fewer new listings coming online, sellers benefited from slightly less competition than they faced in September.
Prices remained stable, dipping less than half a percent. Considering the broader downward pressure over the past year, October’s minimal price movement suggests values may be flattening as the market finds an equilibrium between what sellers are willing to accept and what buyers are prepared to pay.
Key Takeaway: October showed improving buyer engagement and tightening inventory – two key ingredients for price stabilization.
Key Market Drivers in October
Improved Buyer Confidence The fall market saw stronger engagement as buyers adjusted to borrowing costs and gained clarity around pricing. This confidence translated into increased sales activity across both freehold and condo segments.
Inventory Eased After a September Surge September’s spike in listings created temporary pressure on prices. With fewer new listings in October, buyers had less choice, helping restore some balance.
Price Stability Encouraged Move-Ups and First-Timers Stable pricing helped both move-up buyers and first-time purchasers make more confident decisions, especially in the condo and semi-detached segments.
GTA Market Performance: Month-Over-Month
Sales increased by 9.76% (+546 sales)
New listings declined by 16.57% (-3,191 listings)
Active listings dropped by 5.40% (-1,586 listings)
Average price decreased slightly by 0.47% (-$5,005)
Days on Market improved from 51 to 50 days
Key Takeaway: The combination of rising sales and falling listings is a positive directional shift for market balance.
GTA Market Performance: Year-Over-Year
Sales down 7.81% from October 2024
New listings up 4.83% from last year
Active listings up 13.59% from last year
Average price down 7.12% year-over-year (-$80,843)
Days on Market up 16.28% from last year (+7 days)
Key Takeaway: While the month-to-month narrative has improved, year-over-year comparisons continue to show a softer market with more choice and lower prices than last fall.
416 Market Breakdown by Property Type
Sales Activity (Month-Over-Month)
Detached: Up 10.67% (+72 sales)
Semi-Detached: Up 22.90% (+49 sales)
Townhouse: Up 13.64% (+30 sales)
Condo: Up 14.04% (+132 sales)
Sales growth was seen across all housing types, marking one of the broadest improvements this year. Semi-detached homes led the month, followed closely by the condo sector, which regained momentum after a slower summer.
Key Takeaway: Buyer interest strengthened across all segments, showing renewed confidence in the market.
Pricing Trends (Month-Over-Month)
Detached: Down 3.97% (-$66,966)
Semi-Detached: Up 3.18% (+$37,582)
Townhouse: Down 4.19% (-$38,919)
Condo: Up 2.66% (+$18,126)
Freehold properties saw mixed performance. Detached and townhouse values experienced modest declines, while semis posted the strongest price gains of the month. Condos also saw average prices rise, supported by an uptick in demand and more motivated fall buyers.
Key Takeaway: Semi-detached homes stood out as the strongest performer, while condos continue to offer value-driven opportunities for buyers.
October 2025 Toronto Real Estate Market Update
What This Means for Buyers
With inventory easing and sales strengthening, buyers considering a purchase in the next three to six months may want to take advantage of current conditions. Prices have shown signs of stabilizing, and as competition picks up, the negotiation leverage seen through the summer could begin to narrow.
Key Takeaway: Buyers still hold advantages, but conditions are shifting. Acting before inventory tightens further could be beneficial.
What This Means for Sellers
October offered sellers a more encouraging landscape than earlier in the fall. With fewer new listings entering the market, properly priced homes saw more consistent showings and engagement. Attractive, well-prepared properties continue to see the strongest results.
Key Takeaway: Sellers who position their home strategically and price with the current market will find more motivated buyers than in recent months.
Our Take
October marked an important turning point for Toronto real estate. While we’re not seeing dramatic price growth or frenzied bidding wars, the combination of stronger sales and softer listing numbers suggests the market is working toward balance. Confidence has improved, and both freehold and condo buyers are moving more decisively than they did over the summer.
Heading into the final months of the year, the market appears more stable and predictable than it has been for most of 2025. For both buyers and sellers, clarity is returning, and informed strategies are key. As always, reach out any time if you’d like to learn more!
When most people picture a townhouse, they imagine a row of homes neatly connected by shared walls — but in Toronto, that’s only half the story. What really defines a townhouse isn’t its look, but how you own it. From full land ownership to shared maintenance agreements, understanding the difference between freehold, condo, and POTL townhouses can save you surprises (and thousands of dollars) down the line.
Let’s break down the three main types you’ll find across Toronto — and help you decide which one fits your lifestyle best.
Freehold Townhouses: Complete Ownership, Maximum Control
Toronto Row House
A freehold townhouse is the closest thing you’ll find to owning a detached home in a connected row. You own both the building and the land it sits on — from the basement floor to the patch of grass out front.
With no condo board or management company, there are no monthly maintenance fees. But that independence comes with full responsibility. You’ll handle the roof repairs, lawn care, snow shovelling, and any exterior upkeep yourself. For some, that’s freedom. For others, it’s a to-do list that never ends.
Freehold townhomes are often found in mid-density pockets like Queen West, and older pockets of the city, where lots are deep enough to support row-style development. They’re also becoming more common in outer neighbourhoods of Scarborough and Etobicoke where builders can offer fee-free ownership.
Pros:
Full control over your home and land
No monthly maintenance or condo fees
Greater long-term appreciation tied to land value
Cons:
All exterior and structural maintenance is on you
Costs can add up for major repairs (roof, driveway, etc.)
A condo townhouse blends home-like living with the convenience of shared maintenance. You own the interior of your unit, but the exterior, land, and shared amenities belong to a condominium corporation. That means you’ll pay monthly condo fees, which typically cover landscaping, snow removal, roof repair, insurance on the exterior, and sometimes even utilities.
In exchange, you’ll have fewer weekend chores — but a bit less autonomy. The condo board oversees what you can and can’t do with your home’s exterior. Want to change your front door or install a satellite dish? You might need board approval first.
These townhouses are common in Liberty Village, East Bayfront, and along major transit corridors where land is scarce and vertical living makes sense. For many, they strike the right balance between ownership and ease.
Pros:
Lower individual maintenance responsibilities
Shared upkeep through predictable monthly fees
Often include amenities or shared green space
Cons:
Monthly condo fees can rise over time
Limited control over exterior appearance and common areas
If you’re exploring condo living in Toronto, visit our Buy Better guide for expert insights.
POTL Townhouses: The Best of Both Worlds
Toronto POTL Townhouse
A POTL townhouse — short for Parcel of Tied Land — sits somewhere between a freehold and a condo. You own your home and the land beneath it, but it’s “tied” to a Common Elements Condominium Corporation (CEC). That means you also own a share of certain shared spaces — think private laneways, visitor parking, or landscaped courtyards.
You’ll pay a monthly POTL fee for maintenance of those shared elements, but otherwise, you control your property much like a freehold owner. It’s a hybrid model that gives you autonomy with a touch of community upkeep.
POTL developments are increasingly common in suburban pockets of Vaughan, Brampton, and North York (Downsview Park is a big fav of ours), where builders include private roads and shared driveways. They offer the best of both worlds — independent living without the full burden of maintenance.
Pros:
You own both the home and land
Shared maintenance of common areas like roads and landscaping
Typically lower fees than a full condo townhouse
Cons:
Still subject to condo-style rules for shared spaces
Legal structure can be complex — always review the status certificate
Want to hear us talk through these townhouse types in real time?
Tune into our latest Toronto Livings Podcast episode, where Mark and Joey break down the differences between freehold, condo, and POTL townhouses — with real examples from Toronto neighbourhoods.
When it comes to townhouses in Toronto, the right choice depends on how you want to live — and what you’re willing to manage.
Type
Ownership
Fees
Control
Maintenance
Freehold
Home + Land
None
Full
100% Yours
Condo
Interior + Shared Land
Monthly
Limited
Shared
POTL
Home + Land + Shared Elements
Small Monthly Fee
Moderate
Shared
Before you buy, ask your agent (hi 👋) to check the property’s title and status certificate — it’s the best way to confirm what you’re actually buying. Whether you want full control, minimal upkeep, or a balanced middle ground, there’s a townhouse type that fits your lifestyle.
Ready to explore what’s on the market? Start with our Buy Better guide or contact us below for personalized advice!
September brought a noticeable pulse back to the Greater Toronto Area housing market. TRREB reported 5,592 homes sold across the region — an 8.5% increase compared to the same time last year. This rebound comes alongside a 4% increase in new listings, with 19,260 properties entering the market.
While activity picked up, prices continued their modest retreat. The MLS Home Price Index Composite Benchmark dipped 5.5% year-over-year, while the average selling price landed at $1,059,377, down 4.7% annually. On a seasonally adjusted basis, the average price held relatively flat month-over-month (up 0.2%), while the benchmark dipped slightly (-0.5%).
With more homes for sale and increased buyer negotiation power, the market remained competitive — but not chaotic. This remains a market driven by opportunity-seeking buyers and realistic sellers.
The move came in response to softening inflation, weaker job creation, and ongoing global trade challenges. It also provided a notable psychological and financial boost for homebuyers, many of whom had been sidelined by borrowing constraints.
Lower rates mean more manageable monthly payments — especially for variable-rate borrowers or those renewing mortgages. According to Global News, some households are now able to qualify for homes that had previously been out of reach.
Expectations are building for two more 25-bps cuts before spring 2026. If realized, this could significantly improve affordability metrics and buyer confidence.
Deep Dive: Sales, Listings & Price Trends
The September landscape was defined by:
More sales: 5,592 transactions (up 8.5% YoY)
More choice: 19,260 new listings (up 4% YoY)
Lower prices: Benchmark HPI down 5.5%, average price down 4.7%
Subtle shift: Sales up vs August, but listings down → signs of slight tightening in certain pockets
This mild tightening suggests some segments — especially entry-level freeholds and move-in-ready condos — may see more bidding activity heading into the fall.
Condo Market & Our Brokerage Lens
Here’s where things got interesting for us at Toronto Livings.
While broader TRREB data showed continued softness in the condo market, our listings told a different story. Every condo we had on the market in September sold faster than expected — often within a week, and in some cases with multiple offers.
Buyers seem to be responding to three things:
Relative affordability: Condos offer a lower price point for end-users and investors alike.
Inventory balance: With listings plateauing, urgency is returning.
This isn’t a market-wide shift yet — but it’s a trend we’re watching closely, especially downtown and in midtown nodes like Yonge & Eglinton and Liberty Village.
What Buyers & Sellers Should Watch
For buyers:
Affordability is trending in your favour. Lower mortgage rates = more purchasing power.
There’s still room to negotiate. Prices are down YoY, and sellers are motivated.
For sellers:
Well-prepped, well-priced homes are moving. Especially in the condo and mid-tier freehold space.
Professional staging, marketing, and pricing strategy matter more than ever.
For everyone:
Inventory may tighten further if new listings continue to slow and sales ramp up.
October and November often bring strategic buying opportunities before the winter slowdown.
Outlook & Forecast
TRREB expects 76,000 total sales by year-end, with modest price growth returning in early 2026 — assuming more rate cuts are on the table.
But there are caveats:
Construction activity is falling — new housing starts have slowed considerably.
Policy coordination is lacking — TRREB is calling for better alignment between all levels of government and industry players.
Supply chain and labour constraints continue to weigh on delivery timelines.
Still, with borrowing costs easing and buyer sentiment rising, the stage may be set for a more active close to the year.
Thinking of making a move this fall? Let’s talk — the market may offer more opportunities than you think.
If it felt like the market hit pause in August… it kind of did.
Between vacations, back-to-school prep, and one last cottage weekend, it’s no surprise that activity slowed across the board. For our team — and many of our clients — the majority of the month was spent away from the action. Historically, August tends to be one of the sleepiest months in Toronto real estate, and this year followed that familiar script.
That said, a quiet market doesn’t mean a stagnant one. Beneath the surface, some subtle (and potentially significant) shifts took place.
Sales Slow, Listings Rise – A Buyer’s Market (On Paper)
The Toronto Regional Real Estate Board (TRREB) reported 5,211 sales in August 2025 — a 2.3% increase year-over-year, but a sharp 14% decline from July. That drop wasn’t unexpected, given the seasonal slowdown. What stood out more was the surge in new listings: 14,038 properties hit the MLS, up 9.4% from last year and higher than July’s tally.
TRREB President Elechia Barry-Sproule put it this way: “With the economy slowing and inflation under control, additional interest rate cuts by the Bank of Canada could help offset the impact of tariffs. Greater affordability would not only support more home sales but also generate significant economic spin-off benefits.” (FYI, the Bank of Canada is meeting on Sept 17th to decide on the policy interest rate)
You can almost hear the fall market gears warming up… but then again, who really know!?!
Toronto Skyline
Pricing Holds Steady — But Down From Last Year
The average selling price in the GTA came in at $1,022,143 — down 5.2% year-over-year and 2.81% from July. The MLS Home Price Index (HPI) Composite also fell 5.2% annually but held flat month-over-month.
That month-over-month stability may seem like good news for sellers, but context is everything. Properties sat longer, with average days on market rising to 49 — the second slowest pace of the year (only January was slower at 55 days).
In short: homes are still selling, but not without negotiation — and patience.
Condos: The Softest Spot on the Map
Of all housing types, the condo segment saw the steepest summer dip. Just 890 condo sales were recorded — making it the third weakest month of 2025. Prices followed suit, with the average condo selling for $667,660, marking the worst monthly performance of the year.
That said, inventory remains healthy and choice is abundant — which could be a silver lining for buyers looking to enter the market or make a move-up purchase.
What This Means for Fall (And Why September Matters More Than Ever)
August may have been sluggish, but fall could be a different story. With many buyers and sellers returning from summer break, we expect momentum to pick up in September.
TRREB Chief Information Officer Jason Mercer noted that, even with lower borrowing costs and softer pricing, affordability remains a challenge. But any additional cuts from the Bank of Canada — like the ones forecasted this fall — could bring sidelined buyers back into the game.
What Buyers and Sellers Should Know Right Now
For Buyers:
Inventory is your advantage. With listings up and competition low, now’s the time to shop around and negotiate with confidence.
Interest rate cuts may be coming. Acting before they hit the headlines could save you from bidding wars down the road.
Condos are especially soft. If you’ve been eyeing a unit downtown or looking for an investment property, this could be the moment to pounce.
For Sellers:
Buyers are cautious, not absent. Presentation, pricing, and patience are key.
Prep now for the fall surge. We expect renewed activity in September — having your listing market-ready could pay dividends.
Highlight value. With affordability still a top concern, make sure your home’s best features are front and centre.
Final Thoughts – Don’t Sleep on the Slow Months
Yes, August was quiet. But that silence came with a lot of signal: more listings, longer days on market, and room for negotiation across nearly every housing segment.
Sellers: now’s the time to prep your listing for fall. Presentation, pricing, and timing will matter more than ever.
Buyers: if you’ve been waiting on the sidelines, this might be the moment to step in. Less competition. More inventory. And the possibility of more favourable rates ahead.
After a well-earned summer breather, Toronto’s market is gearing up again — and we’re here to help you navigate what’s next.
Looking to buy or sell this fall? Reach out to the Toronto Livings team — even if August was all about rest, we’re ready to help you move forward in September.
The Toronto real estate market delivered its strongest July sales performance since 2021 — a welcome shift after a slow start to the year. According to the Toronto Regional Real Estate Board (TRREB), 6,100 homes were sold across the GTA last month. That’s a 10.9% increase over July 2024.
New listings also climbed to 17,613, up 5.7% year-over-year. But with sales rising faster than listings, the market saw a modest tightening — signalling that more buyers are finding opportunities to jump in.
Are Prices Still Falling?
Yes — but there’s more to the story.
The MLS®Home Price Index (HPI) Composite Benchmark was down 5.4% compared to last year, while the average selling price dropped 5.5% to $1,051,719.
Month-over-month, prices held steady — suggesting the bottoming-out trend we started to see in June may be sticking around.
“Improved affordability, brought about by lower home prices and borrowing costs, is starting to translate into increased home sales,” said TRREB President Elechia Barry-Sproule.
Between back-to-back interest rate cuts earlier in 2025 and greater affordability in key segments (especially entry-level condos and townhomes), buyer activity is up. Homes are selling faster, showing traffic has picked up, and serious buyers are making moves.
This is the second month in a row that sales have outpaced new listings on a seasonally adjusted basis — a trend worth watching as we head into the fall market.
Rate Relief & Economic Outlook
While the Bank of Canada held its key rate at 4.25% in July, economists expect another cut may be on the table this fall (September is the next meeting).
Mortgage rates have already reacted, with many 5-year fixed options dipping below 5% — making ownership slightly more attainable for buyers who were previously priced out.
But the economic picture remains mixed. As TRREB’s Chief Market Analyst Jason Mercer notes:
“Recent data suggest that the Canadian economy is treading water… further interest rate cuts would spur home sales and see more spin-off expenditures, positively impacting the economy and job growth.”
What About the Foreign Buyer Ban?
Despite its name, the foreign buyer ban isn’t an outright block. There are several exemptions that allow non-residents to purchase real estate in Canada, including:
Multi-unit buildings with 4+ units
Vacant land and development parcels
Recreational and rural properties
Purchases by international students and temporary workers under defined rules
This is important context for developers and investors looking at multiplex conversions or purpose-built rentals.
Key Stats at a Glance (July 2025)
Metric
Value
YoY Change
Home Sales (GTA)
6,100
+10.9%
New Listings
17,613
+5.7%
Avg. Selling Price
$1,051,719
-5.5%
MLS® HPI Composite
—
-5.4%
BoC Key Interest Rate
4.25%
—
5-Year Fixed Mortgage Rates
~4.89%
Lower than 2024
What Buyers and Sellers Should Know Right Now
For Buyers:
Timing is on your side. With prices flat month-over-month and rates slowly trending down, conditions are more favourable than they’ve been in years.
Competition is still manageable, but we expect that to shift as fall approaches — don’t sleep on pre-approval and fast decision-making.
Condos and townhomes are heating up, especially in midtown and west-end pockets. If you’ve been on the sidelines, now’s the time to revisit your strategy.
For Sellers:
Pricing matters more than ever. Overpricing is a fast track to stagnation — strategic pricing is key in this transitional market.
Presentation counts. With more motivated buyers, staging, pre-inspections, and marketing make a real difference.
We’re seeing faster sales for homes that show well and are priced right — especially in walkable, transit-connected neighbourhoods.
Final Thoughts
Affordability is improving. Buyer confidence is growing. And if July’s numbers are any indication, we’re moving toward a more balanced market.
With fall just around the corner, there’s likely more activity — and more competition — to come.
If you’re planning to buy, sell, or just want to know how the shifting market affects your next move, reach out to us here.
Want a better sense of your home’s current value? Get your free evaluation and we’ll show you what today’s buyers are paying.
