Toronto’s condo market, long dominated by investors and rapid price gains, has entered a new phase—one that could finally offer a foothold to first-time homebuyers.
With listings up and investor demand cooling, the city’s condos are increasingly being seen as practical starter homes rather than speculative assets.
“Condos have traditionally served as the entry point into homeownership, but what’s different now is that the market is finally working in favour of buyers,” Victor Tran, mortgage and real estate expert at Rates.ca, said.
“Lower purchase prices mean smaller down payments and more flexibility in how buyers structure their mortgage. For young buyers who can qualify, that combination makes condo ownership more attainable than it’s been in years.”
Tran pointed to the average Toronto condo price, now around $655,000, as evidence of the shift.
“A buyer with a 15% down payment would be looking at roughly $2,900 a month on a five-year fixed-rate mortgage — comparable to the cost of renting a two-bedroom condo apartment in the GTA,” he said.
This trend means brokers must spend more time on client education and hand-holding, but it also opens the door to building long-term relationships.
As affordability improves, lenders are rolling out more competitive products tailored to entry-level buyers. Brokers who can match clients with flexible down payment options, shorter amortizations, or hybrid rate structures are likely to stand out.
While ownership comes with additional costs like condo fees, property taxes, and insurance, Tran argued that it also brings greater financial stability for those planning to stay long term.
Market conditions have given buyers more leverage, with some able to negotiate purchase prices below current averages.
“While the market remains unpredictable, this is one of the few times in recent memory when the numbers actually made sense for buyers who plan to stay put for at least the next five years and aren’t expecting major lifestyle changes,” Tran said.
“That timeframe gives them a chance to manage costs, build equity, and benefit from stable housing payments.”
Tran also cautioned buyers to be selective about the type of property they pursue.
“Resale condos are often the safer choice right now, as many new developments are facing cost pressures, financing hurdles, and construction delays that add uncertainty for buyers,” he said.
According to the Toronto Regional Real Estate Board (TRREB), condo sales in the city have softened since 2022, while active listings have climbed, giving buyers more options and bargaining power. Similar shifts can be seen in Vancouver and Calgary, where rising inventory and muted investor activity have opened doors for first-time buyers.
"If you look at the market now, it’s probably one of the best times in the last handful of years for a younger buyer to get in because now interest rates are coming down a little bit in the next couple of months, hopefully,” RE/MAX Canada area vice president Kingsley Ma told Canadian Mortgage Professional.
CMP
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