Despite high borrowing costs and a cautious economic backdrop, Toronto’s top-tier buyers are back, and they’re focusing on quality, lifestyle, and long-term value. While the broader GTA market has moved in slow motion this year, the luxury segment is bubbling with renewed confidence.
Below is everything Ontario homeowners, investors and upgrade-movers need to know — and how this shift creates opportunities for borrowing, refinancing or unlocking home equity with Lendworth.
Luxury Sales Are Climbing Again — Slowly, But With Serious Momentum
New September data shows luxury home sales (properties over $2M) ticked up year-over-year, moving from 314 sales last fall to 341 transactions this year.
No, it’s not 2021’s frenzy — and it won’t be for a while — but the momentum is undeniable.
Top analysts agree the story is simple:
Many luxury buyers sat on the sidelines for 18+ months
Interest-rate cuts and stable pricing have restored confidence
Inventory in premium neighbourhoods is tightening
Serious buyers are stepping back in before competition heats up again
One more interest-rate cut is widely expected before year-end, which could further boost activity across Toronto’s high-end market.
Where Activity Is Heating Up: Toronto’s Most Sought-After Neighbourhoods
Despite an overall “buyer-leaning” environment, several GTA pockets are experiencing tighter supply and confident bidding behaviour — a huge shift from earlier this year.
Hot luxury zones right now:
Forest Hill
Leaside
Lawrence Park
Cabbagetown
The Kingsway (Etobicoke)
Old Oakville
Homes that are priced well and presented beautifully still sell quickly — sometimes within 24 hours.
Supply is thinning, and that’s exactly why luxury buyers are starting to act.
$4M+ Market Stabilizes — While Ultra-Luxury Goes Off-Market
Luxury activity over $4M grew 3% year-over-year, even with higher rates.
Sales over $1M dipped slightly (down 4%), indicating that the middle-upper tier is more price-sensitive than the ultra-rich.
But here’s the twist:
More ultra-luxury sellers are choosing off-market, private transactions, avoiding MLS entirely. Only 3 properties over $10M sold on MLS this quarter — compared to 10 a year ago — meaning the real activity is happening behind closed doors.
This signals serious buyer intent, just with more privacy and precision.
What Luxury Buyers Want in Late 2025: Quality or Nothing
According to top GTA brokers, today’s luxury buyer is:
Discerning
Long-term focused
Less sensitive to interest rates
Unwilling to compromise on design, layout, neighbourhood or lifestyle
Willing to wait for the right home — but ready to act when they see it
Architectural quality, flow, privacy, neighbourhood character and long-term value matter more than ever.
“Luxury buyers will remain active, just more selective," says one leading Toronto broker — and that’s exactly what we’re seeing.
A Winter of Opportunity: Borrowing, Refinancing & Strategic Moves
The next 3–5 months may end up being one of the best windows for strategic buyers and refinancers. Here’s why:
1. Inventory Will Tighten Even More
Many sellers hold off until spring. That means:
Less competition
More negotiability
Better prices on high-end homes
2. Borrowing Costs Are Expected to Ease
Even a 25 bps cut can:
Improve affordability
Boost refinances
Increase equity-takeout opportunities
Support renovation financing
3. Pent-Up Demand Is Building Fast
Buyers who paused in 2023–2024 are preparing to re-enter early 2026.
If you want first-mover advantage, winter is it.
Why This Matters for Homeowners: Equity is King Again
With luxury demand rising and supply tightening, GTA home values in premium areas are showing resilience — and that means more equity opportunities for homeowners.
This is where Lendworth comes in.
Unlock your equity to:
Consolidate high-interest debt
Renovate to increase your home’s market value
Fund a down payment for a second property
Bridge financing while upgrading to a luxury home
Take advantage of time-sensitive buying opportunities
Same-day approvals. Ontario-wide funding. Equity-based. No bank stress tests.
This is the moment to act before spring competition returns.
What’s Next for GTA Luxury Real Estate?
Experts anticipate:
A measured but optimistic winter
Lower listing volume but stronger demand for quality homes
Continued strength in Forest Hill, Leaside, Lawrence Park, The Kingsway & Oakville
A surge of activity in early 2026 if rates drop again
More off-market deals as buyers seek privacy and exclusivity
If you're a homeowner, investor, or someone considering upgrading in 2026, this winter could be your advantage window.
Thinking About Unlocking Equity or Preparing for a Move?
Lendworth can help you leverage today’s shifting luxury market with:
✔ First mortgages
✔ Second mortgages
✔ HELOCs
✔ Equity take-out
✔ Bridge financing
✔ Fast private funding (24–48 hours)
✔ No income or credit score required
📞 Call us: 905-597-1225
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