One of the top questions we are getting from first-time buyers is if 2025 will be a good time to get into the Toronto market. The short answer? YES. Actually, now is one of the best times for first-time buyers that the market has seen in many years – and there are a few reasons for that.

If you’re thinking about making your first purchase in the coming months, there are many things you can do now to set yourself up for success.

Do you have a lease that’s expiring soon, and you want to start contributing to your own future rather than paying off someone else’s mortgage? This is the biggest reason to do whatever it takes to make your first purchase. Why give money to your landlord’s future instead of putting money into your own pocket? Now is the time to make moves to put yourself first!

The biggest thing to remember is to not be overwhelmed – buying should be a fun and educational experience. Yes, we said it – fun.

Now or Later – What’s Best for First-Time Buyers in 2025?

When examining the current market, we have strong recommendations for first-time buyers in early 2025. BUY! Now is an incredible time to get into the market, and this may come as a surprise to many but there is a good reason for this advice.

With so much inventory available in the market, and so many incredible homes to look at, you’re guaranteed to find a house or condo you love. And the one factor that sets you apart as a first-time buyer is that you don’t have to sell in order to buy. So your purchase decision isn’t contingent upon the sale of your home.

Because let’s be honest – when we’re sitting in a buyer’s market as we are today, many are in a holding pattern until they sell their current home. But you don’t have to be concerned with this challenge that many are facing and this puts you ahead of the pack.

There is also no competition in the market so no bidding wars are driving up prices for absolutely no reason. No multiple offers and plenty of beautiful homes and condos are available. Sellers are also very motivated.

Interest rates are coming down and are expected to continue to drop, and we also have the changes to the new mortgage rules which will help you with your purchase and down payment.

So, what steps can you take to prepare? The first step is to form your real estate team. Finding an experienced Real Estate Broker who has a proven track record with first-time buyers is an important step.

We pride ourselves on educating first-time buyers through every step of the process.  You should be excited to purchase your first house or condo – if you’re feeling less than that, it’s time to re-evaluate your team.

Buying for the first time shouldn’t be stressful, and with our list of things you can do now, you won’t have to worry about missing any of the critical steps in your first-time buyer experience.

Get a Mortgage Pre-Approval

A mortgage pre-approval will tell you how much you qualify for. This is a critical first step for first-time buyers in 2025, as you will work with a mortgage agent to get all of your qualifications in order. A good mortgage broker will guide and educate you on the pre-approval process, and give you comfort in knowing exactly what your budget range is so you can start looking for a home you can afford.

How Much Can You Afford?

Think about your monthly costs. What can you afford to pay per month for your mortgage? Think about your other monthly costs too. Insurance, public transit pass or car loan, grocery bills, entertainment and anything else you pay every month that will impact your home costs. Just because you are approved for a certain amount doesn’t mean that’s what you should actually spend.

The New Mortgage Rules

The federal government will increase the cap on insured mortgages to $1.5 million from $1 million, effective Dec. 15, which would allow more people to buy a house with a down payment below 20 percent.

Previously, Canadians who did not pay at least a fifth of the cost of the house as a down payment needed to take out mortgage insurance, but the insurance was available only for homes priced at $1 million or less. That limit is now $1.5 million.

In addition, purchasers will be able to take out loans for a 30-year period if they are first-time homebuyers or if someone is buying a newly built house. Earlier, the three-decade amortization period was limited to first-time buyers buying newly built houses.

Saving for a Down Payment for Your First Home

Borrow from your RRSP or Use a Tax-Free Savings Account

You can withdraw up to $60,000 from your RRSP to buy your first condo or house. This is a great way to come up with a down payment if you already have some RRSPs. For a couple, if each individual has their own RRSP and can withdraw $60,000 each, they can withdraw a combined total of up to $120,000.

The only catch to this program is that you have to pay the money back to your RRSP within 15 years. If you don’t repay the money, it is treated as income and you will have to pay tax on the money you withdrew as though it were income.

A Tax Free-Savings Account can also be a great place to save your down payment money as your money can grow tax-free in this account. This means you won’t have to pay income tax on the money you earn as it grows.

We recommend consulting you’re your financial advisor for more information on how these options can work best for you.

Other Saving Strategies

Living in a big city like Toronto where everything is pricier than most other parts of Canada, saving for a down payment can be a challenge.  And it will not be fun – we get it. But this is how smart people save a lot of money.

They make lifestyle changes by finding different, cheaper ways of doing things without diminishing their fun. Here are some great examples we found:

• Stick to one entertainment outlet. If you have cable TV, cancel your Netflix account. Can’t live without Netflix? Cable has to go. There are so many ways to spend money each month on entertainment, and you may feel that you need all of them – try to pick your most-watch or go-to account and stick with it.
  
• Getting a lot of takeout? Try limiting your ordering to once per week. And when you do order, go pick it up yourself – not only does it help your bank account, it helps put more of that money into the restaurant’s pocket.
  
• Do you buy a lot of new clothes? Limit yourself to only 5 new pieces of clothing, shoes and accessories per season. And when you buy, look for off-season deals. We love a good semi-annual sale.
  
• If you’re saving for a down payment, you should think about shelving any major holiday plans. Don’t spend that saved-up money on an epic holiday once we can. Take that money and put it towards your amazing condo or house you’re going to purchase. At the very least, think about road trips or visiting a friend’s cottage instead of getting on that flight as soon as the winter blues hit.
  
• Pick your at-home workout like your entertainment source – just one that covers it all. There’s no need for multi-platform workouts. Look at an option that has thousands of on-demand classes that you can do anywhere any time for a yearly fee. Even better – use YouTube as your main fitness platform and save all that money each month.
  
• Consider a side hustle. Smart savers know that they can make extra money on the side by doing various jobs. Are you really good at digital marketing? Consider a small consulting job for a handful of mom-and-pop shops that need help in your neighbourhood.

Working with Toronto Realty Boutique

With over 15 years of experience and over $350 Million in represented real estate transactions, our experience at TRB is second to none. First-time buyers are our specialty and we’ve helped countless clients get into their first home with ease.

If you’re interested in learning about how we help our first-time buyer clients, get in touch with us today by completing the information form on this page. We’ll be in touch about setting up a time to chat so we can help you get into your first home much faster than you think.

With the market as it is today in Toronto, first-time buyers in 2025 shouldn’t miss out on this massive opportunity.

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