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Canada’s housing market may be opening new doors for first-time buyers, thanks to lower borrowing rates, softer prices and more listings to choose from. But, uncertainty in the economy and an abundance of choice have led to a lack of urgency to buy, prompting many young Canadians to take their time before entering the market.  

According to a recent Royal LePage survey, conducted by Burson,¹ 13% of Canadian adults say they are actively working towards the purchase of their first residential property within the next two years. Of this group, a small proportion say they are working towards their first purchase within the next 12 months, while the majority (82%) say they are planning to make a purchase in 12 to 24 months. 

When asked what stage of the purchasing process they are in, more than half (51%) of first-time buyers said they are currently researching neighbourhoods where they can afford to live, 49% are actively browsing online listings, 19% are actively viewing homes listed for sale in person, and 19% have engaged with a real estate agent. Respondents were able to select more than one answer.

“Interest rates are trending lower and prices have stabilized or even softened in some markets, creating favourable conditions for long-awaited entry into home ownership, especially in costly cities like Toronto and Vancouver. Yet, hesitation remains,” said Phil Soper, president and CEO, Royal LePage. “For some, ongoing economic uncertainty, particularly surrounding trade relations with the United States, is prompting them to hold off until there are signs of stability. Buying a home is the biggest financial decision most people will ever make, and first-time buyers naturally want to do so with as much certainty as possible. 

“Others are choosing to wait in hopes of securing a better deal. With the potential for further rate cuts from the Bank of Canada this year, those in no rush to purchase now are taking a methodical approach – building up their savings and deliberately planning their entry into the market when they feel the timing is best for them.”

Financial support continues to flow from family to first-time buyers

While many buyers continue to rely on help from family to make their first home purchase, most do not. When asked if they would receive any financial assistance towards the purchase of their first residential property, more than half (51%) said they would not receive any help. Meanwhile, 41% of first-time buyers said they would. Even as affordability has improved in several markets over the past year, many first-time purchasers continue to rely on financial support to take their first step onto the property ladder.

Among first-time homebuyers who will receive financial support, 29% say it will be in a lump sum with no repayment expected, 27% will receive a loan from family or friends that they will pay back, 28% will have a family member or friend co-sign their mortgage loan, and 26% will receive financial assistance towards their monthly mortgage payments. Respondents were able to select more than one answer.

“Despite improving affordability, many first-time buyers continue to rely on family financial support. This transfer of wealth has become increasingly common, as parents look to give their children the same opportunity for stability and long-term financial growth that they themselves experienced through home ownership. For some buyers, financial contributions from family can make the decisive difference between becoming a homeowner and remaining a tenant,” said Soper.

“However, many lack access to this kind of support, forcing them to adopt more creative and often difficult approaches to saving. Some delay major life milestones, such as marriage or starting a family, in order to prioritize home ownership. Others cut back significantly on discretionary spending, or continue living at home with parents well into adulthood to build up their savings. While determination and careful planning help these buyers reach their goals, the gap between those who receive financial assistance and those who do not highlights the deep affordability challenges in today’s market.”

Detached homes remain the top choice

Despite the hefty price tag, many first-time buyers continue to aspire to own a detached property as their entry into the market. Nearly half (49%) of respondents plan to purchase a single-family detached property as their first home, followed by 26% who intend to buy a condominium or apartment, according to the survey. 

“The dream of a first home often collides with budget reality. While most aspire to own a detached house, affordability often dictates a more modest starting point,” said Soper. “With many employers requiring staff to return to the office, proximity to transit and other amenities has become an increasingly important factor in the search. New buyers also show a clear preference for properties in move-in ready condition, as few have the time or financial flexibility for major renovations.”

Other interesting highlights from the survey:

• More than half (53%) of first-time buyers plan to put at least 20% down on their purchase; while 39% will not and will therefore need to buy mortgage insurance.
• 42% of first-time buyers say they will prioritize the neighbourhood where they want to live, regardless of the distance to their job, while 31% say they will purchase a home based on proximity to their work.
• Finding a home that is move-in ready is the most important non-price related factor for first-time buyers, according to Royal LePage professionals across the country.

Read the full press release and review the data chart for more details:

Your home is more than a place to sleep and eat – it’s your sanctuary. A calming environment can do wonders for your mood, productivity, and overall well-being. But, even small visual distractions, like cluttered countertops or a pile of shoes at the front door, can subtly disrupt your sense of peace.

To create a home that promotes clarity, calm, and ease, it helps to start with your physical surroundings. Below are nine practical ways to improve the flow and organization of your space, removing both visual and mental barriers along the way.

1. Declutter surfaces

Clear your kitchen and bathroom countertops of unnecessary items. Everyday essentials should be stored in drawers, cabinets, or organizing containers – out of sight but easy to access. Avoid overcrowding surfaces with decorative items, and keep high-traffic areas like hallways and entryways free of obstruction.

2. Prioritize clear pathways

Walk through each room and consider how easily you can move from one area to the next. Furniture should support natural movement, not block it. When possible, place larger pieces like couches or dressers against the wall to free up space in the center of the room and improve overall flow.

3. Choose furniture that fits the room

Select furniture that’s appropriate in both size and purpose for the space it’s in. For example, dining tables should allow enough space for chairs to move freely, even when people are seated. Oversized furniture in small rooms can feel overwhelming, while undersized pieces in large rooms may appear disconnected.

4. Soften sharp corners

In smaller areas, opt for round or oval-shaped tables rather than square or rectangular ones. Soft, curved edges promote smoother movement and a more relaxed energy throughout your space.

5. Let air and energy circulate

Avoid storing items under beds, couches, or dressers, as these areas collect dust and interrupt airflow. Instead, use closets with doors to tuck away seasonal items, storage bins, or extra supplies. Open space beneath furniture helps maintain a cleaner, lighter aesthetic.

6. Create visual harmony

Use a consistent colour palette throughout your home to create visual flow between rooms. A cohesive scheme doesn’t have to be uniform, just complementary. Add personality through removable accents like pillows, artwork, or throws that can easily be updated or replaced.

7. Maximize natural light and openness

Natural light boosts moods and creates a sense of openness. Avoid placing furniture in front of windows, and keep doorways free from obstructions so they can open fully. These small adjustments make a big impact on how open and welcoming a space feels.

8. Add calming scents

Scent can powerfully influence your mood. Use an air purifier in the kitchen to remove lingering food odours. In your bedroom or living room, a diffuser with light, natural essential oils (like eucalyptus, citrus, or lavender) can create a calming atmosphere without overwhelming the space.

9. Reduce noise pollution

A calm home isn’t just about what you see, it’s also about what you hear. Minimize disruptive noise by adding soft furnishings that absorb sound, like rugs, curtains, and upholstered furniture. Use a white noise machine or soft background music in bedrooms or workspaces to create a more soothing atmosphere.

When your physical space feels clear, your mind often follows. By making a few intentional changes, you can create a home that supports your well-being, reduces stress, and welcomes you with calm and clarity at the end of every day.

The Toronto skyline is a testament to ambition and growth, with new cranes constantly appearing, promising the next great place to live and invest. For savvy investors, pre-construction condos offer a powerful opportunity to build wealth. You can secure a brand-new property at today's prices, benefit from modern layouts, and watch your investment appreciate long before you even get the keys.

However, the path to pre-construction success is paved with complexities that can trip up the unprepared. Construction delays, confusing cost structures, and intricate legal contracts can quickly turn a dream investment into a financial headache.

As a real estate professional deeply embedded in Toronto's pre-construction market, my role is not just to get you "platinum access" to the hottest projects. It's to empower you with a sophisticated due diligence process that protects your capital and maximizes your returns.

This is your ultimate checklist. Use it to navigate the pre-construction landscape like a pro and make your next investment your best one yet.

Part 1: Invest in the Builder, Not Just the Building

A glossy brochure and stunning renderings can be captivating, but the single most important factor in any pre-construction project is the developer behind it. Think of them as your long-term business partner. Their track record, financial stability, and reputation for quality are paramount.

Your Due Diligence Checklist:

• Track Record is Everything: Has the developer completed past projects on time? Search for news articles or online forums discussing their history with delays or cancellations.

• Quality Control: Visit their previous buildings. How have they held up? Are the common areas well-maintained? If possible, speak to residents about their experience.

• Reputation Check: What do third-party rating organizations say? Check their standing with the Better Business Bureau (BBB) and their Tarion warranty record for any major claims.

• Legal Scrutiny: A quick search can reveal if the developer is facing any significant lawsuits or liens that could signal financial instability.

Part 2: Location, Location, Future-Location

You're not investing in the neighbourhood as it is today; you're betting on what it will become in 3-5 years when your condo is ready. A deep dive into the area's future growth drivers is non-negotiable.

Your Market Analysis Checklist:

• Follow the Growth: Look at the City of Toronto's official plans. Are there major infrastructure projects planned, like new subway lines (e.g., the Ontario Line) or GO Train expansions? These are magnets for future demand.

• Job Market Hubs: Is the location near growing employment centres like tech hubs, hospitals, or university campuses? A strong local job market ensures a steady stream of potential tenants.

• Lifestyle & Livability: Proximity to grocery stores, parks, restaurants, and good schools is crucial for attracting high-quality, long-term tenants.

• Rental Market Health: I'll provide you with data on current rental rates and vacancy levels in the area to project your potential cash flow with confidence.

Part 3: Uncovering the True Cost of Your Investment

The purchase price is just the beginning. A common mistake for first-time pre-construction investors is underestimating the full spectrum of costs. Let's create a comprehensive budget to ensure you're financially prepared for the entire journey.

Your Full Cost-Breakdown Checklist:

• Deposit Structure: Understand the detailed payment schedule. It's typically spread out, but you need to be ready for each installment.

• Closing Costs Uncovered: Beyond legal fees, you'll have development levies and land transfer taxes. It is crucial to have your Agreement of Purchase and Sale reviewed to see if these levies are capped.

• The Investor HST Obligation: For an investment property, you will be required to pay the HST portion upfront on closing. However, you can apply for the HST New Residential Rental Property (NRRP) Rebate if you have a one-year lease in place. This is a critical cash flow consideration.

• Interim Occupancy Fees: This is the period where you can occupy the unit (or rent it out with the builder's permission) but don't yet own it. You'll pay a monthly fee to the builder that covers interest on the outstanding balance of the purchase price, estimated property taxes, and condo fees.

• Financial Stress Test: I always recommend speaking with a mortgage broker who specializes in pre-construction to plan for potential interest rate changes between signing and closing.

Part 4: Decoding the Fine Print: Your Legal Shield

A pre-construction Agreement of Purchase and Sale is written by the developer's lawyers, for the developer's benefit. It's vital to have an experienced real estate lawyer review it during your 10-day cooling-off period.

Your Legal Review Checklist:

• The Assignment Clause: This clause dictates if, when, and how you can sell your contract to another buyer before the final closing. This is a key potential exit strategy and the terms must be crystal clear.

• Builder's Right to Change: The contract will give the builder the right to make "material changes." Understand what they can alter, from floor plans to finishes.

• Delay and Occupancy Dates: Note the "outside occupancy date." This is the latest date the builder can deliver the unit without penalty, providing you with a clearer timeline.

• Tarion Warranty: Your investment is protected by the Tarion warranty. Understand the one, two, and seven-year coverage to protect yourself from defects.

Part 5: Aligning Your Investment with Your Life Goals

Finally, why are you making this investment? Your end goal will shape every decision we make, from the type of unit you buy to your long-term strategy.

Your Strategic Planning Checklist:

• Define Your Goal: Are you looking for a quick profit via an assignment sale, or are you aiming for long-term rental income and appreciation?

• Tenant-Focused Design: If it's a rental, we need to analyze the floor plan's efficiency. Does it have a good layout, desirable exposure (e.g., south-facing), and features that appeal to tenants?

• Cash Flow Projections: Let's forecast your carrying costs (mortgage, condo fees, property taxes) against potential rental income to understand your monthly cash flow.

• Exit Strategy: Plan your exit from day one. Will you hold for five years and then refinance? Sell after ten? Having a clear plan brings discipline to your investment.

Ready to Invest with Confidence?

Navigating the Toronto pre-construction market requires more than just access—it demands expertise, foresight, and meticulous attention to detail. By using this checklist, you're already ahead of the curve.

If you're ready to explore pre-construction opportunities and want a trusted advisor to guide you through every step of this process, let's talk.

In May 2023, Toronto City Council made a pivotal move by amending zoning laws and policies to encourage housing development. This change was part of the broader 2023 Housing Action Plan aimed at fostering inclusive, sustainable communities throughout the city. However, despite the green light for these projects, the real estate industry faces challenges, including high borrowing costs, slow municipal adoption, and a lack of knowledge on how to fully benefit from these changes. With interest rates finally beginning to drop, there’s renewed optimism, and a critical question arises: have we found the missing middle?

What is the “Missing Middle”?

The concept of the “missing middle” refers to a gap in housing types between high-rise condos and single-family homes. Multiplex development could be the key to filling this void. Unlike large-scale developments, multiplexes are smaller multi-unit properties that are constructed more quickly and efficiently. With new zoning regulations in place, these projects are gaining traction as an effective solution to Toronto’s housing shortage.

Advantages for Homeowners and Landlords

For homeowners, multiplex development offers an opportunity to maximize the use of their property. As property taxes and living costs rise, many homeowners are looking for ways to generate extra income. Building a multiplex, such as a triplex, can provide additional rental units, creating a steady revenue stream. Moreover, it opens up possibilities for intergenerational living, allowing families to build separate units for elderly parents or adult children, all while staying close to home.

The Developer’s Advantage

For developers, the shift towards multiplex projects offers a unique opportunity in a market that has seen condominium development slow down. With Canada facing a housing deficit projected to reach 658,000 units by 2030, smaller-scale developments like multiplexes are becoming more critical than ever. Toronto’s new policies allow these developments in residential neighborhoods, opening up new possibilities for developers. The speed of construction, supported by streamlined permitting processes, makes multiplexes an appealing option for developers looking for quicker returns on investment.

Lending and Investment Opportunities

While larger financial institutions are cautious about funding smaller projects, multiplex development presents an opening for alternative lenders to step in. These lenders can support mid-sized developers, helping bring necessary housing to market. For investors, multiplexes are becoming a more accessible option, offering an affordable alternative to high-risk condo investments. With favorable tax structures and shorter development timelines, multiplex properties are emerging as a compelling investment strategy for 2025.

Conclusion

Multiplex development offers a promising solution to Toronto’s housing crisis. With the right mix of small- to mid-sized developers, lenders, and investors, this type of housing could help bridge the gap between high-rise condos and single-family homes, solving part of the city’s pressing housing needs.

In today’s unpredictable commercial real estate landscape, Canadian investors are facing a range of challenges, from rising construction costs to shifting political dynamics. The CBRE Capital Lenders’ Forum, held on February 25^th in Toronto, brought together key players in the industry to discuss the effects of global tariffs, particularly those levied by the Trump Administration, and their potential impact on Canada’s real estate market. While panelists acknowledged the difficulty in predicting the outcome of these changes, they also highlighted several emerging opportunities for savvy investors.

The New Reality of Tariffs and Their Impact on Development Costs

Discussions focused on the uncertainty of how tariffs on U.S. imports, particularly construction materials, would affect the Canadian commercial real estate market. Many experts expressed concern that retaliatory tariffs from Canada could increase the cost of essential building materials, including steel, appliances, and HVAC systems. This could lead to a rise in development costs, especially in the residential sector. For developers, this could result in a 4% increase in overall development expenses, a figure that, while concerning, is not insurmountable.

However, industry leaders remained optimistic about Canada’s future in the real estate sector and focused on the importance of maintaining a pro-growth agenda in Canada, regardless of external factors like tariffs, highlighting the potential for internal reform to counteract some of the negative effects of global trade disruptions.

The Office Market: Repositioning and Reimagining Spaces

While many sectors of the real estate market are adapting to shifting economic conditions, the office market is also undergoing transformation. One notable success story is KingSett Capital’s repositioning of Scotia Plaza, a high-profile office tower in Toronto. With significant vacancies following Scotiabank’s relocation, KingSett and its partners invested heavily in the building’s renovation, transforming it into Canada’s first Zero Carbon Performance-certified office tower. The result? Full occupancy, with all of Scotia Plaza’s once-vacant office space now leased.

This success demonstrates the potential for investors to breathe new life into underperforming office assets through strategic repositioning and modernization. By focusing on sustainability, premium amenities, and high-quality service, investors can transform older office buildings into sought-after spaces for tenants, even in a challenging market.

Looking Ahead: A Bright Future for Canadian Real Estate

Despite the challenges presented by tariffs, rising construction costs, and geopolitical uncertainty, real estate investors in Canada remain optimistic about the long-term prospects of the market. While it’s crucial to stay informed and flexible, the Canadian market offers numerous opportunities for those willing to take a strategic approach. Whether through multifamily housing, affordable housing development, or repositioning office spaces, there is ample potential for growth.

In conclusion, Canada’s real estate sector may be navigating a period of uncertainty, but for those who take a long-term view and remain adaptable, the next decade could prove to be a lucrative one. For real estate investors, now is the time to act.

The Toronto office market is poised for significant growth in 2025, creating a unique opportunity for real estate investors. While vacancy rates are expected to remain high early in the year, industry experts predict a shift towards large lease deals and a flight to premium office spaces.

One of the most notable trends is the early lease renewals and expansions, as institutional employers regain confidence in the post-pandemic office landscape. For example, EY Canada recently renewed its lease at the EY Tower and expanded by 50,000 square feet. This deal, the largest of 2024 in Toronto, signals the beginning of a broader trend expected to gain momentum in 2025.

Experts predict that the office market will stabilize as the supply of premium spaces is gradually absorbed. The key to success for real estate investors lies in understanding the growing demand for high-quality office spaces in prime locations that are expected to outperform other properties. Companies are increasing their focus on modern amenities, sustainability, and flexible workspaces to provide a top-tier employee experience.

The EY Tower in downtown Toronto exemplifies this shift. Redeveloped into a 40-storey building with high-performance energy systems and luxurious amenities, it has remained at full occupancy. Its success highlights how well located, well-designed, and amenity-rich buildings are attracting long-term tenants. With demand for quality office space set to increase, investors with properties in desirable locations are likely to benefit.

While vacancy rates in downtown Toronto are still relatively high, the market is starting to stabilize. By the second half of 2025, leasing activity is expected to rise, driven by companies committing to longer-term leases after years of opting for flexibility. For investors, this means that the Toronto office market is heading toward healthier conditions, with more secure and predictable rental income streams.

In conclusion, 2025 presents a promising horizon for those investing in office space in the GTA. The ongoing flight to quality, combined with a stronger economic outlook and improved leasing conditions, positions investors for success. Now is the time to assess your portfolio and explore opportunities in Toronto’s premium office spaces.