The final group of borrowers who secured ultra-low mortgage rates during the pandemic is beginning to renew, and 38% of Canadians with a mortgage on their primary residence expect their payments to increase. In Toronto, that figure rises slightly to 39%.

While higher monthly payments will place additional pressure on household budgets, most homeowners are not anticipating a change in where or how they live. Seventy-one per cent of those approaching renewal say they do not plan to move, rent out their home or downsize. Instead, many expect to reduce discretionary spending, travel less or postpone renovations. For most homeowners, higher carrying costs are prompting financial adjustments rather than an immediate change in housing. Home remains a priority, even when maintaining it requires compromises elsewhere in the household budget.

The impact of higher borrowing costs, however, extends beyond the mortgage payment itself. Postponed renovations, reduced discretionary spending and changing monthly obligations can influence when a homeowner chooses to move, how much a buyer can comfortably afford and how existing home equity factors into longer-term plans.

For buyers, this makes understanding the financial picture before beginning a search increasingly important. Purchase price is only one part of that equation. Mortgage structure, monthly carrying costs and future financial flexibility all contribute to determining what is both affordable and sustainable.

For homeowners approaching a renewal, it can also be an appropriate time to consider the larger picture. Understanding the current value of the property, the equity that has been built and how well the home continues to suit future plans can provide useful context before making longer-term financial decisions.

Despite earlier concerns that pandemic-era mortgage renewals could result in a significant increase in defaults, serious mortgage delinquency remains relatively low. Canada’s 90+ day delinquency rate was 0.24% in the fourth quarter of 2025, remaining below pre-pandemic levels.

The numbers suggest that Canadian homeowners are adapting to a different borrowing environment. Higher mortgage payments are undoubtedly changing household finances, but for many, the response is not necessarily to change homes. It is to reassess priorities, understand their financial position and make more deliberate decisions about what comes next.

Across Central Toronto, the market feels different today than it did six months ago.

Buyers are showing up. Properties are receiving attention. Offer dates are returning. Multiple offers are no longer uncommon in the city's prime neighbourhoods.

While we are not experiencing the frenzied conditions of past market cycles, we are seeing something equally important: confidence returning to the marketplace.

The question is no longer whether the market is improving.

The question is how much momentum it can build.

What began as cautious buyer interest earlier this year is evolving into measurable activity across many segments of Toronto's housing market.

While much of the conversation continues to focus on prices that remain below last year's levels, a different story is unfolding beneath the surface. Buyers are returning, sales are increasing, yet fewer homeowners are choosing to list their properties.

That imbalance matters because markets rarely change all at once. Momentum builds gradually. Buyers gain confidence, inventory is absorbed, competition re-emerges, and pricing begins to respond. While we are still in the early stages of that cycle, the underlying trends point to a market that is steadily strengthening.

If you only looked at Toronto's average home prices, you might conclude that very little has changed over the past year. The average home sold for $1,108,292 in May, down 4.1 per cent from a year ago. Condominium values also remain below last spring's levels.

Yet focusing solely on prices misses the bigger picture.

Toronto recorded 2,377 sales in May, an increase of 2.7 per cent compared to last year. At the same time, the number of new listings coming to market fell by 19 per cent. Homes are also selling more quickly, with average days on market declining from 29 days to 26 days while some neighbourhoods are seeing single digit days on market.

Signs of strengthening demand are beginning to appear in the pricing data as well. The average sale price in Toronto increased 1.5 per cent compared to April, while condominium prices rose 1.3 per cent month over month.

Beyond the statistics, we are seeing a noticeable shift in buyer behaviour across many of Toronto's most desirable neighbourhoods. Offer dates, which largely disappeared during the market slowdown, are becoming increasingly common once again. Multiple-offer situations are returning for well-presented homes in sought-after areas, particularly where inventory remains limited.

Buyers remain thoughtful and disciplined in their approach. The urgency and emotion of the pandemic market has not returned, nor should it. Today's buyers are informed, cautious and value conscious. However, they are no longer standing on the sidelines. When the right property comes to market and is priced appropriately, they are prepared to act.

For sellers, this is an encouraging development. A growing pool of active buyers combined with fewer new listings is creating more favourable conditions for well-positioned homes.

Across Central Toronto, the market feels different today than it did six months ago. Buyers are showing up. Properties are receiving attention. Offer dates are returning. Multiple offers are no longer uncommon in the city's prime neighbourhoods.

While we are not experiencing the frenzied conditions of past market cycles, we are seeing something equally important: confidence returning to the marketplace.

Momentum is building. The months ahead will determine just how far it carries the market.

Dear Toronto,

Here’s a curated breakdown of where we stand:

🏡 DETACHED HOMES Sales: 3,689
Average Price: $1,691,294
Sale Price/List Price: 101%
Average Days on Market: 23
New Listings: 10,697

Takeaway: Detached homes remain the cornerstone of Toronto real estate. While the tempo has slowed slightly, pricing has held firm. The abundance of listings gives buyers leverage — but prime, well-prepared homes still command strong results. Presentation and strategy matter more than ever.

🏘 SEMI-DETACHED Sales: 1,328
Average Price: $1,279,516
Sale Price/List Price: 106%
Average Days on Market: 19
New Listings: 2,913

Takeaway: This segment is outperforming. Demand for semis — particularly in established, walkable neighbourhoods — remains robust. Most are selling well over asking, often in multiple offers. For sellers, the first half of 2025 was fertile ground.

🏙 CONDO APARTMENTS Sales: 5,422
Average Price: $715,378
Sale Price/List Price: 98%
Average Days on Market: 35
New Listings: 20,785

Takeaway: The condo market is experiencing recalibration. With a flood of inventory and a cautious buyer pool,expectations have been reset. That said, quality product — especially those with efficient layouts, outdoor space, and parking — is still moving. For investors and end-users alike, the long-term value proposition remains.

🏡 TOWNHOMES (FREEHOLD + CONDO)
Attached/Row: Avg $1.26M | Sale Price/List Price: 103%
Condo Towns: Avg $839,939 | Sale Price/List Price: 100%

Takeaway: Toronto townhomes continue to appeal to discerning buyers seeking function, style, and a foot on the freehold ladder. These homes are holding their own in both pace and price. Thoughtful updates and good bones are rewarded.

🧾 NICHE MARKETS (CO-OPS, LINK, CO-OWNERSHIP, ETC.)
A quieter corner of the market. While volume remains low - 44 sales for Co-ops and 18 units for CoOwnership , these alternative forms of ownership offer creative entry points — and savvy buyers are taking note.

🔍 THE INTERPRETATION This isn’t a buyer’s market — but it’s not a seller’s market either. We’re in the midst of a strategic market.

FOR BUYERS - Patience and precision are key. The right home is out there, often with room to negotiate.

FOR SELLERS - Success lies in the details. Pricing smartly and preparing thoroughly are the differentiators in this climate.

FOR INVESTORS - Opportunities are re-emerging, particularly in the condo sector, where pricing has softened and yields are improving.

✨ FINAL WORD Toronto’s market is evolving, not unraveling. The fundamentals remain sound: population growth, limited land, and global desirability. As always, those who move with insight — not impulse — are best positioned to benefit for this opportunity.

Curious how this plays out for your property, your investment, or your next move?
Let’s connect. Strategic advice. Zero pressure.

Almost half (47 per cent) of first-time buyers who made a home purchase in the last 18 months were aged between 25 and 34, according to the Canada Mortgage and Housing Corporation’s (CMHC) 2025 mortgage consumer survey.

Where a buyer lives can also influence their age. In the Prairies, most new buyers fell within the 18 to 34 age range, while in regions like Atlantic Canada and British Columbia, first-time buyers tended to be slightly older, CMHC noted.

Leah Zlatkin, mortgage broker and chief operations officer at Mortgage Outlet Inc. in Concord, Ont., says that in the Greater Toronto Area, first-time buyers are typically older than their counterparts in the Greater Horseshoe Area or the Prairie provinces.

“Many of the buyers I work with are in their late twenties to mid-thirties,” Zlatkin said. “Though from time to time, I do assist younger clients—often with help from their parents.”

She attributes this trend to the higher housing costs in the GTA. “People generally need more time to save, especially if they’re aiming for a larger home that suits a growing family,” she added.

Although the 25–34 age group has consistently led since 2019—reaching a high of 56 per cent in both 2023 and 2024—it dropped modestly in 2025, per CMHC findings. The demographic is shifting upward: buyers over 35 made up 39 per cent of the market in 2025, up from 33 per cent in 2024 and 30 per cent the year before.

According to Statistics Canada, the median age of those claiming the first-time home buyer tax credit was 32 in 2022—the most recent year available—up from 30 ten years earlier.

Still, some Canadian cities are managing to attract younger buyers, particularly where housing prices are more accessible.

Montreal offers the best value across Canada where a lot of young people are moving here from other provinces, since they can buy a condo for $500 per square foot instead of $1,000 like in Toronto. 

How much income does a first-time homebuyer need?

The income levels of first-time homebuyers have risen in recent years, crossing into six-figure territory: CMHC reports that in 2025, the median income was around $105,000 — a jump from the $60,000 to $90,000 range noted five years prior.

As per the Canadian Real Estate Association (CREA), the national average home price stood at $707,380 in April. In Ontario and British Columbia, averages neared $1 million, while in Atlantic Canada and in provinces like Saskatchewan and Manitoba, prices ranged between $300,000 and $400,000.

CMHC also found that 71 per cent of first-time homebuyers were married or in common-law relationships, and 91 per cent had jobs.

More than half of these buyers had children in their households, and 64 per cent were renters prior to buying, with an average renting period of 6.3 years.

A growing number of single women in their thirties or early forties are entering the housing market, often purchasing solo — a sign of increasing financial independence and less emphasis on waiting for a partner.

CMHC’s findings also show that 54 per cent of first-time buyers bought a home with another adult who was not their spouse or partner. This trend was most prominent among younger adults aged 18 to 24 and was especially common in Quebec.  

How are first-time buyers putting together their down payment?

According to CMHC, key sources for down payments included 39 per cent from non-RRSP savings, and 38 per cent from first home savings accounts (FHSAs). 

But the most common contribution came in the form of gifts: more than 40 per cent of first-time buyers received financial gifts to assist with their purchase, with the typical gift totaling $74,570.

Gift reliance varied by region — those in higher-cost provinces like Ontario and B.C. were more apt to receive such support, while those in the Prairies were more reliant on their own savings.

Gift amounts ranged widely — from $43,086 in the Prairie provinces to as high as $142,812 in British Columbia. As real estate values outpace wages, parents are increasingly stepping in to close the gap.

CMHC also highlighted a notable jump in the number of buyers who lived with family or friends before purchasing — 35 per cent in the current year, compared to 28 per cent the year before. It’s likely this choice reflects efforts to cut expenses and boost savings in preparation for a home purchase.

Parental help also influences the timeline to save for a down payment. CMHC reports that first-time buyers typically saved for 3.7 years — but without family assistance, it often takes five to seven years, especially in expensive markets like Vancouver. 

How I Help First-Time Buyers Plan for Success

Buying your first home is exciting—but it can also feel overwhelming. With high prices, complex financing, and a lot of opinions from well-meaning friends and family, it’s easy to lose focus. That’s where we come in.

We work closely with first-time buyers to make the process clear, manageable, and rewarding—whether you’re buying solo, with a partner, or even with a friend or family member.

Here’s how we can help you plan with confidence:

1. Understand What You Can Afford—Now and Later
We will help you see the full picture: not just your budget for the home, but the other costs that come with it—like legal fees, land transfer tax, closing costs, and more. We’ll build a realistic plan based on your finances and your goals.

2. Introduce You to Mortgage Experts You Can Trust
We have strong relationships with mortgage advisors who specialize in helping first-time buyers navigate things like RRSP withdrawals, the FHSA, and family gifting. We’ll make sure your financing plan works for you today and supports your future plans.

3. Match Your Lifestyle with the Right Property
Whether you’re planning for kids, buying with a friend, or looking for flexibility down the road, we’ll help you choose a home that fits your life—not just your budget. We’ll also highlight areas where your money goes further or where values are poised to grow.

4. Spot Value in a Competitive Market
With my background in building structure, design, and market history, I’ll help you see the potential in homes others overlook—and know when to walk away from something that’s not worth your money.

5. Make a Strong Offer Without Overpaying
Offers don’t have to be all-or-nothing. We will help you make a smart, competitive offer with the right protections in place, so you’re not overextending or missing something important.

6. Keep You Grounded and Empowered
Buying your first home can stir up a lot—stress, doubt, excitement. We are here to give you clarity, keep things moving, and make sure you feel informed at every step. You don’t have to navigate this alone.

7. Be Your Go-To Resource Beyond Closing Day
Our relationship doesn’t end when you get the keys. We are here to support you through renovations, homeownership questions, and even your next move when the time comes.

The Bottom Line:
Whether you’re saving for your down payment, wondering if you’re ready, or trying to make sense of Toronto’s market, We are here to help. From strategy to celebration, we are in your corner every step of the way. Let's make a smart plan—and find the home that's right for you.

For many, homeownership is the cornerstone of financial stability in retirement. But what happens when loved ones struggle to break into the market due to skyrocketing home prices and hefty down payment requirements? Increasingly, parents and grandparents are stepping in, eager to help their children or grandchildren secure a home before real estate prices soar even higher.

Enter the reverse mortgage as a down payment gift—a rising trend among senior homeowners. According to Yvonne Ziomecki-Fisher of HomeEquity Bank, Canada's largest reverse mortgage provider, there has been a 15.5% increase in new reverse mortgage holders using their funds for gifting purposes. To support this shift, HomeEquity Bank recently launched Homebridge, a streamlined online application that helps seniors access their home equity faster than ever.

Sounds like a win-win, right? Not so fast. While the idea of using a reverse mortgage to gift a down payment is appealing, it comes with its fair share of risks. Let’s weigh the pros and cons before anyone starts signing on the dotted line.

6 Reasons to Think Twice About a Reverse Mortgage Gift

1. The Cost

Reverse mortgages aren’t exactly cheap. Five-year fixed rates currently hover between 6.49% and 6.69%, nearly two percentage points higher than conventional mortgage rates. At those rates, a homeowner who takes the maximum allowable reverse mortgage at 65 could see their loan eat up all their home equity by around age 92—leaving little to no inheritance.

💡 Tip: If a reverse mortgage is your only option, compare rates and features from HomeEquity Bank, Equitable Bank, and Bloom Financial to find the best deal.

2. Living Longer Than Expected

If you reach 75, Statistics Canada suggests you have a high probability of living until at least 88. And there’s nearly a one-in-six chance you’ll reach 95. That’s great news—unless you’ve already drained your home equity and are facing rising healthcare and living costs.

3. Limited Borrowing Power Later

Once you take out a reverse mortgage, traditional lenders generally won’t approve secondary financing. If unexpected expenses arise, your borrowing options could be severely restricted.

4. Market Risks

Property values fluctuate. If your home's value declines while your loan balance grows, you could end up with little to no equity left when you need it most. While reverse mortgages come with a “no negative equity” guarantee, this doesn’t mean you’ll have much left over if you need to sell in a down market.

5. Complications for Family Inheritance

If multiple heirs expect an inheritance, a reverse mortgage can create estate-planning headaches. Your children might need to sell the home quickly or take on a larger reverse mortgage to settle debts and distribute assets fairly.

6. More Affordable Alternatives Exist

Other options may be cheaper:

• A HELOC (Home Equity Line of Credit) could be a better choice—though it requires monthly interest payments.

• Selling other investments before turning to home equity could be a smarter move.

• A low-interest promissory note could allow parents to help without gifting funds outright, preventing an estranged spouse from claiming half in a divorce.

5 Reasons It Might Be a Golden Opportunity

1. The Joy of Giving

Many parents and grandparents don’t want to wait until they’re gone to help their loved ones. They’d rather see their children or grandchildren benefit now—and avoid the stress of bidding wars and rising prices.

2. A Stronger Financial Future for Younger Generations

Statistics Canada reports that the median net worth of homeowners over 65 is 15 times higher than that of renters. Helping your kids buy now could give them a significant financial advantage later in life.

3. Stay in Your Home for Life

Reverse mortgages don’t require monthly payments, and the funds aren’t taxable. As long as you keep up with property maintenance and taxes, you can stay in your home—even if your loan balance eventually exceeds its value.

4. No Need to Liquidate Other Assets

Selling stocks or cashing out investments could result in taxes and lost returns. A reverse mortgage provides cash while allowing other investments to grow.

5. Age Matters

The older you are when you take out a reverse mortgage, the less time interest has to compound, meaning a lower risk of depleting your equity.

💡 Advice-only financial planner Jason Heath suggests:

“I would use non-registered or TFSA savings first, then consider a HELOC. If those are exhausted, a reverse mortgage may be viable—but be cautious not to jeopardize your own retirement.”

Final Thoughts: Smart or Risky?

For most Canadians, their home is their biggest financial safety net—not an ATM. If you have other liquid assets, tapping into home equity to help someone else buy a property may not be the best move.

But if you’re financially stable, have planned for your own long-term care, and truly want to give the gift of homeownership, a reverse mortgage could be a viable strategy—provided you’ve weighed the pros and cons.

Thinking about helping a loved one with their first home? Let's chat about the best strategy to make it happen—without compromising your financial future!