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Is Now the Time to Buy Your First Home in Toronto? Why 2025 Might Be the Best Entry Point in Years

If you’ve been waiting on the sidelines to buy your first home in Toronto or the GTA, now might be your moment. Since February 2022, the average Canadian home price has dropped by nearly $150,000, creating rare opportunities for first-time buyers who were previously priced out of the market.

And unlike the frantic bidding wars of past years, 2025 is shaping up to be a buyer’s market—especially in major hubs like Toronto and Vancouver.

Why First-Time Buyers Are Finally Stepping In

“For the first time in years, buyers can take their time, compare options, and negotiate price,” says Toronto real estate agent Heather Hadden. With condos under $600,000 now available in the downtown core, and three-bedroom homes within reach in outer suburbs, the entry point has dropped significantly.

It’s not just lower prices: with interest rates stabilizing around 2.75%, borrowing has become more affordable. Plus, the glut of unsold pre-construction units is giving buyers more selection than ever before.

The Market Is Turning, But There’s Still Time

According to the Canadian Real Estate Association (CREA), national resale activity began rising again in late 2024, as interest rates fell and pent-up demand returned. RBC economist Robert Hague believes this is the beginning of a sustained recovery.

But that doesn’t mean the window is closing just yet.

Experts like Fred Blondeau of Green Street caution that interest rates, trade uncertainty, and slower immigration could keep the market balanced for the next 6–9 months. First-time buyers don’t need to panic—but they do need to prepare.

The Risk of Waiting Too Long

While some analysts warn of ongoing price softness, others say a supply slump in Ontario and B.C. could set the stage for another affordability crisis.

As thousands of pandemic-era pre-construction projects hit the market, developers are cutting prices. But new construction starts have plunged—down 69% year-over-year in Toronto, according to CMHC. When that pipeline runs dry, inventory could tighten quickly.

Hadden puts it bluntly: “A lot of people who waited for the ‘bottom’ ended up missing the boat.”

Beyond Toronto: Where Prices Are Rising

Not all markets are softening. Saskatchewan, Quebec, and Atlantic Canada are experiencing tight supply and rising prices. Even Winnipeg is seeing consistent upward pressure.

So while GTA buyers still have time, the rest of the country may be heading into a different phase altogether.

What It Takes to Buy Today

Toronto mortgage broker Marshall Tully explains that for a $600,000 home with 20% down, you’ll need about $100,000 in annual income. Add in property taxes, condo fees, insurance, and maintenance, and the real cost of ownership becomes clearer.

Still, those costs are becoming more manageable compared to peak pandemic levels—and for many, owning is finally within reach.

Why First-Time Buyers Should Consider Lendworth

At Lendworth, we understand that the traditional mortgage model doesn’t work for everyone. That’s why we offer equity-based mortgages that make it easier for first-time buyers to break into the market—without relying solely on income verification.

✅ Approvals based on home equity

✅ Interest rates starting from 8.99%

✅ Fast closings for condos, townhomes, and detached homes

✅ Available across the Greater Toronto Area

Whether you’re purchasing a resale condo, closing on a pre-construction unit, or refinancing to make your first home work for you, Lendworth is here to help.

Final Word: Be Ready, But Don’t Rush

2025 is a rare moment when buyers have leverage, prices are down, and sellers are open to negotiation. The chaos of the past few years has subsided—but this window won’t stay open forever.

🏡 Explore your mortgage options today with Lendworth

📞 905-597-1225 | 📩 info@lendworth.ca | www.lendworth.ca

Canadian Mortgage Originations Surge 27% — What It Means for the Toronto Market & How Lendworth Helps You Ride the Wave
Mortgage borrowing is back in a big way—and not just because people are rushing to buy homes. According to the Bank of Canada, uninsured mortgage originations hit $40.7 billion in June 2025, marking a 27.5% year-over-year jump.