Hopeful buyers who found themselves frozen out of the market in previous years are finally seeing some relief
It’s no secret that prices and rents are tumbling in Toronto’s housing market, making it a tough time to be an investor or landlord in the city.
But while the recent price slump hasn’t moved the needle for many hopeful buyers because affordability remains out of reach, others who were previously just on the margins are suddenly seeing glimmers of opportunity.
Last month, detached home prices were down 7.5% year over year throughout the Greater Toronto Area (GTA), while semi-detached prices dipped 4.2% and townhouse values moved 3.8% lower.
Some buyers are holding off on making a purchase for now, convinced that prices and rates will move lower still. But others who’ve long been set on a move are suddenly finding a good deal in a cooler market, according to Mortgage Outlet chief operating officer and broker Leah Zlatkin (pictured top).
“I have first-time homebuyers that have been on my books for years – and a bunch of them bought houses in July and Augst this year, mostly because there are townhomes and row homes, specifically centre row homes, that are priced very reasonably for what people could afford,” she told Canadian Mortgage Professional.
‘It’s a great news story for first-time homebuyers’
Smaller markets outside the city are offering plenty of opportunity, Zlatkin said: Tottenham, North Aurora, East Gwillimbury and others, where buyers might be able to purchase a $750,000 home and take the GO train to work in the city.
What’s more, the bidding wars that inflamed prices during the red-hot pandemic years are firmly a thing of the past, boosting prospects even further for buyers. “You can get a bigger home than you expected this time last year,” Zlatkin said. “You can get a better price point. You can qualify for the mortgage.
Despite federal and municipal employees heading back to the office, broker Chris Allard of Smart Debt Mortgages says core living remains out of reach for most workers earning $70K–$140K individually.https://t.co/AtkMEztkp1
— Canadian Mortgage Professional Magazine (@CMPmagazine) September 10, 2025
“And a lot of these people have been sitting on the sidelines for so long, they’ve built up a little bit of a downpayment. And now that houses are finally within that range, it’s their time to jump aboard and get into the market. So I think it’s a great news story for first-time homebuyers.”
That positive outlook for new buyers isn’t likely to fade anytime soon, either. There’s little evidence that a price rebound in Toronto is in sight, while the Bank of Canada is also expected to bring rates lower in the months ahead – starting with a probable cut on Wednesday (September 17).
That’s good news for variable rates, and movement in the bond market could also be about to bring fixed rates lower. “Bond yields are down,” Zlatkin highlighted. “Typically when that happens, we expect to see rates start to go down a little bit. We haven’t seen that yet.
“Given that we haven’t seen rates going down, for now we’re in a bit of a holding pattern. And this is great because people can get into the market while it’s still accessible.”
The Canadian Mortgage Summit is nearly here
That Bank of Canada decision will be closely watched by the Canadian mortgage sector – and another big event for the industry that day is the Canadian Mortgage Summit, set to take place at Brampton’s Pearson Convention Centre.
Zlatkin will moderate a key panel on the outlook for brokers and borrowers in 2026, bringing together leading lender executives to discuss what’s in store and the main trends brokers should be focusing on.
“I want to be able to provide value to the brokers in the audience so that they understand what the environment they’re in right now looks like,” she said, “where their borrowers and clients are probably going to see some pain points in the next six to 12 months and what solutions can be presented to clients to help them through these rough patches.
“For example, if we’re concerned that defaults might increase: what are some strategies we can use as brokers to help coach our clients to keep them in their homes, to help them overcome any challenges they might be having? What are the different products in the marketplace that might be able to suit a need? Do we set people up with second mortgages? Where can we go from here if we’re seeing economic uncertainty?”
Also on the agenda is discerning lenders’ risk appetite for particular deal types to better inform brokers on where they can send their business. “Understanding where the trends are and who’s willing to work with certain types of client is also really helpful for a broker,” Zlatkin said.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
