Toronto Real Estate Blog & Market Insights

If you are looking to buy real estate in the Greater Toronto Area this year, you are stepping into a market that has officially split in two.

According to the latest June 2026 data from the Toronto Regional Real Estate Board (TRREB) and the Building Industry and Land Development Association (BILD), buyers are currently facing a fascinating divergence. In one corner, new-build low-rise homes are flying off the shelves. In the other, the downtown condo market is flooded with inventory, driving prices down and attracting serious institutional money.

For buyers, this creates a major strategic decision: Do you chase the government incentives on a new build, or do you take advantage of the high inventory to negotiate a steep discount on a condo?

Here is a breakdown of exactly what is happening in the GTA market right now, and how you can position yourself to win.

Path 1: The Low-Rise Boom & The HST Rebate Advantage

If you have been holding out for a detached, semi-detached, or townhome, the landscape is shifting quickly. New low-rise home sales have beaten their 10-year average for the second consecutive month.

Why the sudden rush? It comes down to the province's enhanced HST rebate program for new construction. Buyers are realizing that the tax savings on a brand-new home often outweigh the benefits of buying resale, especially when builders are offering flexible deposit structures to close the deal.

However, if you are looking at the resale freehold market, the window of opportunity is tightening. TRREB’s May and June data show that new listings have dropped by nearly 18.9% year-over-year.

The Takeaway for House Hunters: Inventory for low-rise homes is shrinking. If you want a freehold property, the time to sit on the fence has passed. The enhanced HST rebate makes new builds incredibly attractive, but if you prefer an established neighborhood, you will need to act before the lack of resale inventory drives prices back up.

Path 2: The Downtown Condo Squeeze

While the low-rise market tightens, the Toronto condo market is currently a true "Buyer's Market."

Condominium sales have dropped significantly below their 10-year average, and active listings are piling up. Sellers who bought pre-construction a few years ago are now looking to offload units, creating a glut of supply. Currently, the sale-to-list ratio in the GTA is hovering around 98%—meaning buyers finally have the power to negotiate under the asking price.

But here is the most important signal for everyday buyers: Institutional investors are quietly swooping in.

Just this week, news broke that a Canadian corporate buyer purchased $30 million worth of unsold condos in downtown Toronto—and stated they are "just getting started." Institutional money always buys at the bottom of the market. If massive corporations are buying Toronto condos in bulk right now, they are betting heavily on a fast recovery.

The Takeaway for Condo Buyers: Do not let high condo fees or temporary price stagnation scare you away. You currently have more negotiating power than buyers have had in years. Follow the "smart money" and secure a downtown condo at a discount before the institutional buyers scoop up all the premium inventory.

Which Path is Right For You?

The 2026 market divide means there is no "one size fits all" advice.

• If you prioritize land, space, and tax incentives, the new-build low-rise market is calling your name.

• If you want to buy at the bottom of the market and secure a long-term asset in a world-class city, the downtown condo market is overflowing with opportunity.

At RE/MAX Plus City, we track these micro-trends daily. We know which builders are offering the best HST rebate incentives and which downtown condo buildings have motivated sellers ready to negotiate.

Contact our team today remaxpluscity.com/contact to discuss your 2026 real estate strategy. 

If you have been watching the Greater Toronto Area (GTA) real estate market in 2026, you have likely noticed a sharp increase in listings containing the phrase: "Property being sold under Power of Sale."

With mortgage renewal rates causing financial strain for many homeowners and investors, Power of Sale listings have become a major topic. For buyers, these properties represent a unique opportunity to enter the market or secure an investment—but only if you understand the strict legal rules that govern them.

This guide breaks down exactly how a Power of Sale works in Ontario, the hidden risks of the "As-Is" clause, and how to successfully buy one in today's market.

What is a Power of Sale?

A Power of Sale is a legal mechanism that allows a mortgage lender (like a bank or private lender) to sell a property when the homeowner stops making their mortgage payments.

Instead of going through a lengthy and expensive court process, the right to sell the property is written directly into the standard Ontario mortgage contract. Once the homeowner defaults, the lender must provide a notice period. If the debt isn't paid, the lender can legally list the home on the MLS and sell it to a new buyer.

Power of Sale vs. Foreclosure: The Critical Difference

Many buyers mistakenly use the terms "foreclosure" and "Power of Sale" interchangeably. In Ontario, they are entirely different, and understanding this changes how you should negotiate.

The Bottom Line: Because lenders in Ontario have a fiduciary duty to the original homeowner, they cannot hold a "fire sale" and sell the home for pennies on the dollar. You can get a fair deal, but you will not get a house for 40% off market value.

Why Buy a Power of Sale Property?

Despite the lack of deep discounts, buyers and investors are actively seeking these properties in 2026 for three main reasons:

1. Motivated, Logical Sellers: You are negotiating with a bank's asset manager, not an emotionally attached homeowner. They want a fast, clean transaction.

2. Less Bidding Competition: Many everyday buyers are scared off by the legal terminology and the "As-Is" condition, leaving more room for prepared buyers to negotiate.

3. Value-Add Potential: Because defaulting homeowners often fall behind on maintenance before they lose the home, these properties often need cosmetic updates. This presents a great opportunity for buyers willing to put in a little "sweat equity."

The Hidden Risks: Understanding "Schedule A"

When you submit an offer on a Power of Sale, the bank will attach a mandatory legal document usually called Schedule A. This document deletes standard buyer protections and is the reason you need an experienced real estate team.

Here is what you are accepting when you buy a Power of Sale:

• The "As-Is, Where-Is" Clause: The bank never lived in the home. They will not guarantee that the roof doesn't leak, that the furnace works, or that the basement is dry. If you find a problem after closing, it is entirely your responsibility.

• No Clean-Up Guarantees: The bank will not guarantee that the property will be professionally cleaned or that the previous owner's junk will be removed before you move in.

• The Right of Redemption: Up until the moment the property officially closes, the original homeowner has the legal right to pay off their debt and halt the sale. If this happens, your purchase agreement is canceled (though you do get your deposit back).

How to Successfully Buy a Power of Sale in 2026

If you are ready to navigate the risks, here is how you position yourself to win:

1. Never Waive Your Home Inspection: Because of the "As-Is" clause, a professional home inspection is your only line of defense. Never buy a distressed property blindly.

2. Have Your Financing Locked In: Banks prefer clean, straightforward offers. Have your mortgage pre-approval fully secured and a healthy deposit ready. Lenders are less likely to accept offers with long, complicated financing conditions.

3. Work with a Specialist: You need a Realtor who knows how to read bank schedules, negotiate with asset managers, and spot the signs of a good investment.

Ready to see what is on the market?

We track distressed properties across the GTA. Click here to view our exclusive list of current Power of Sale listings.

Frequently Asked Questions

Are Power of Sale properties cheaper than regular homes?

Not drastically. Lenders are legally required to sell the home at Fair Market Value. While you might secure the property slightly below market value due to its "As-Is" condition, you will not find extreme discounts.

Can I get a mortgage on a Power of Sale property?

Yes. You can finance a Power of Sale just like any other home. However, your lender may require an appraisal to ensure the home is in habitable condition before they approve the funds.

How long does it take for a bank to accept an offer?

Unlike a standard sale where a homeowner might reply in 24 hours, bank offers often take 2 to 5 business days. The offer must usually be reviewed by an asset manager and sometimes a recovery committee.

How do I find Power of Sale listings in Toronto and the GTA?

They are listed on the MLS, but they are often hidden in the "Brokerage Remarks" that only licensed Realtors can see. The best way to find them is to work with an agent who actively filters for these listings. Contact the RE/MAX Plus City team today to get started.

If you bought a home or condo in the Greater Toronto Area (GTA) between 2021 and 2022, you might be walking into one of the most frustrating roadblocks in the current real estate market.

You have a perfect credit score. You have never missed a mortgage payment. Your income has gone up. Yet, as your mortgage renewal approaches and you look to refinance to ease the burden of higher interest rates, the bank is saying "no."

You aren't alone. This is what the Bank of Canada recently highlighted in its Financial Stability Report, and mortgage brokers are calling it the GTA Refinancing Trap.

Here is exactly why perfectly qualified homeowners are being locked out of the refinance market this year—and more importantly, the actionable steps you can take to protect your equity and lower your payments.

The Root of the Problem: The "80% Rule" and Dropping Appraisals

In 2026, close to 60% of Canadian mortgages are set to renew—marking one of the largest renewal waves in decades. Many of these homeowners secured ultra-low rates around 1.39% fixed or 0.99% variable during the pandemic.

Today, those rates are gone. Many homeowners are looking to refinance—perhaps to stretch their amortization back to 25 or 30 years to lower their monthly payments, or to consolidate debt.

Here is where the trap snaps shut: In Canada, you are legally only allowed to refinance up to 80% of your home’s current appraised value.

Over the last two years, the Toronto housing market has cooled. As of June 2026, the average home price in the GTA sits at roughly $1,069,700—down nearly 5% year-over-year. Because property values have dipped, home appraisals are coming back significantly lower than what owners expect.

The Math Behind the Trap

If you bought a home for $1,000,000 in 2021 with a 10% down payment, your mortgage was $900,000.

Fast forward to today:

• You owe roughly $800,000 on the mortgage.

• However, if a bank appraiser values your home at $950,000 in today's market, 80% of that value is only $760,000.

Because you owe $800,000, which is more than the $760,000 limit, you do not qualify for a refinance. You are effectively trapped with your current lender, unable to restructure your loan to lower your payments.

Are You Forced to Accept Your Bank's Renewal Offer?

When homeowners realize they can't refinance, they often panic and sign the automatic renewal letter their current bank sends them in the mail. Do not do this without exploring your options first.

Banks know that if you are "trapped" by a low appraisal, you have less negotiating power. As a result, the rate they offer you in that letter is almost certainly higher than what they offer new clients.

3 Strategies to Escape the Refinancing Trap

If you are facing a low appraisal or a stressful renewal, you still have options. At RE/MAX Plus City, we help our clients navigate this exact scenario every single day. Here is what we recommend:

1. Switch Instead of Refinance

While refinancing (changing the loan amount or amortization) requires 20% equity and a strict appraisal, a straight switch (moving your exact remaining loan amount and schedule to a new lender) often does not. If your current bank is offering you a poor rate, you can still shop the market and move your mortgage to a lender offering a better rate, often without triggering a full physical appraisal.

2. Get a Professional Broker Opinion of Value First

Bank appraisers are famously conservative. Before you let the bank dictate what your home is worth, bring in an expert. Our team at RE/MAX Plus City can provide a comprehensive, data-driven Current Market Evaluation. We pull the most recent, comparable sales in your specific downtown Toronto or GTA neighborhood to ensure your home’s value is being accurately represented. If the bank's automated system is undervaluing your home, we give you the data to fight back.

3. Explore Alternative (B-Lender) Options

If you absolutely must refinance to consolidate debt or lower your payments to survive, and traditional banks are saying no because of the 80% rule, Alternative Lenders (often called B-Lenders) have more flexible internal policies. While their rates might be slightly higher, the ability to extend your amortization and lower your actual monthly cash outflow can save you from having to sell your property in a down market.

Don't Let the Market Dictate Your Financial Future

The 2026 real estate market requires strategy. The days of simply signing a renewal paper and forgetting about it for five years are over. Whether you own a condo in Liberty Village or a detached home in Mimico, knowing the true, current value of your property is your best defense against the refinancing trap.

Before you sign your renewal letter, let’s talk.

Contact the team at remaxpluscity.com today. We will provide you with a crystal-clear picture of what your property is worth in today’s market, so you can confidently negotiate with your lender or decide if selling is the better strategic move.

Searching for a downtown Toronto Realtor online returns hundreds of results. Every agent has a polished website, a row of five-star reviews, and a bio that describes them as a "passionate," "dedicated," and "results-driven" professional. They all look the same.

But in a market as specific and complex as downtown Toronto's condo sector — where building-level knowledge, maintenance fee literacy, and pre-construction experience can mean the difference between a great deal and a catastrophic one — choosing the right Realtor is one of the most consequential decisions you'll make in the entire transaction.

This guide tells you exactly what to look for, what questions to ask, and why hyper-local specialization matters in 2026's market. And yes, we'll tell you exactly why RE/MAX Plus City is a strong choice for buyers, sellers, and investors in the downtown core.

Why Downtown Toronto Requires a Specialist — Not a Generalist

A Realtor who primarily works suburban detached homes in Brampton or Whitby is not well-equipped to guide you through a downtown Toronto condo purchase. This is not a slight — it's simply a function of how different the knowledge requirements are.

Downtown Toronto's condo market involves:

Building-specific knowledge. A strong downtown Realtor knows the difference between buying in a building with a healthy $5M reserve fund versus one with a $400,000 fund facing a $15M elevator modernization project in two years. They know which buildings have banned short-term rentals. They know which buildings have had water damage issues, recurring noise complaints, or elevator reliability problems. This knowledge only comes from working in specific buildings repeatedly over time.

Pre-construction expertise. A significant portion of downtown Toronto's condo inventory is pre-construction or recently completed. Understanding assignment clauses, developer Tarion warranty obligations, occupancy fees, closing cost structures (including development levies and HST implications), and the current landscape of the 2026 HST rebates requires specific training and experience that many general agents simply don't have.

The offer process. Lender-driven power of sale listings, assignments, estate sales, and developer sales each have completely different offer processes, schedules, and legal requirements than a standard residential resale. A downtown specialist has written hundreds of these offers. A generalist may have never written one.

Pricing accuracy. Pricing a downtown condo correctly requires granular knowledge of what comparable units in the same building and competing buildings have sold for — not just the broader neighbourhood average. Two units in the same building, with different floor levels and exposure, can differ by $80,000–$150,000 in value. Only agents who regularly transact in these buildings have the data to advise accurately.

7 Questions to Ask Any Realtor Before Signing a Buyer Representation Agreement

Before you commit to working with a downtown Toronto Realtor, ask these specific questions:

1. How many condo transactions did you close in the downtown core last year? An active downtown specialist closes 15–40+ condo transactions per year. If the answer is fewer than 10, or if they struggle to give you a specific number, that's meaningful data.

2. What buildings do you know best, and why? A specialist will answer this specifically — they'll name buildings, describe the ownership profile, mention recent maintenance fee increases or special assessments, and tell you which floor plans hold value best. A generalist will give a vague answer about "knowing the area."

3. Can you walk me through the Status Certificate review process? They should be able to explain what a Status Certificate contains, why it matters, what red flags to look for, and how they work with their buyer's lawyer to assess it. If they need to look this up, find someone else.

4. Have you done pre-construction deals in the current 2026 HST rebate environment? The new federal and provincial HST rebates introduced in 2025–2026 are complex and have specific eligibility windows, anti-avoidance rules, and documentation requirements. An active downtown agent has been through these with multiple clients and can guide you confidently.

5. What's your honest assessment of the market right now? You want a Realtor who gives you an honest, data-driven answer — not one who tells you everything is "always a great time to buy." In 2026, the honest answer involves acknowledging the price correction, the inventory surplus in condos, and why that creates specific opportunities for buyers. If they're aggressively bullish without nuance, be cautious.

6. What's your communication style and availability? A downtown condo deal can move fast. When a good unit is priced right, multiple offers can appear within 24–48 hours. You need a Realtor who is genuinely responsive and will prioritize your search when you need them to.

7. Can you refer me to your preferred mortgage broker and real estate lawyer? Strong agents have trusted professional networks. Their referrals to mortgage and legal professionals reflect their own reputation — they won't refer you to someone who will make them look bad.

Red Flags: Signs You're Talking to the Wrong Realtor

They can't tell you the maintenance fee range for buildings in your target area. This is fundamental data for any downtown condo buyer.

They show you properties outside your stated criteria and budget. "I just want to show you a few more options" is often a sign they're working their inventory rather than your needs.

They pressure you to remove conditions. A Realtor who encourages you to waive the Status Certificate review or financing condition to "win" a bidding war is prioritizing the deal over your protection.

They don't ask about your timeline, lifestyle, or long-term goals. Buying a condo for investment has completely different criteria than buying a primary residence. An agent who doesn't ask which you're doing isn't doing their job.

They promise you a specific sale price for your listing on the first call. Price opinions take research. A number thrown out in a 10-minute conversation is marketing, not analysis.

What Separates RE/MAX Plus City from Other Downtown Toronto Realtors

We're located at 14B Harbour St — not in a suburban office park with a "downtown Toronto" service area marked on a map. We work in the downtown core because we live in the downtown core. This is our market.

Our specific expertise:

• Waterfront and South Core condos — we have transacted in virtually every significant building from Bathurst to Parliament along the lake, and we have current knowledge of which buildings are performing well and which are facing headwinds in 2026.

• The Well, King West, and Entertainment District — we know the buildings, the floor plans, the maintenance fee trajectories, and which specific units represent value in the current market.

• Pre-construction and assignment sales — our sister site assignmentplus.ca is one of the GTA's dedicated assignment sale resources. We understand the legal nuances, the HST rebate implications, and the specific risks and opportunities of pre-construction purchases.

• Power of sale and distressed assets — through our powerofsaleplus.ca platform, we have deep experience in distressed condo listings — which represent some of the most compelling opportunities in the 2026 downtown market.

• Investor clients — we work with landlords and investors across all product types, and our GTA Landlord and Turnkey Rental Management platforms give our investor clients end-to-end support from acquisition through property management.

RE/MAX platform advantage: As one of RE/MAX's downtown Toronto-based teams, we have access to RE/MAX's national and international buyer network — important for properties where relocation buyers and international investors are a meaningful part of the potential buyer pool.

For Sellers: Why Your Choice of Realtor Matters Even More

If you're selling a downtown Toronto condo in 2026's market, the stakes are higher than they were in 2021. With inventory at a 15-year high and buyers having real choices, your listing needs to be exceptional — not average.

Pricing strategy in a corrected market: Getting this right is the single most important factor in your outcome. An agent who prices based on what you paid in 2021 will have your unit sit on the market for 90+ days. An agent who prices based on current comparable sales and positions your unit competitively will sell faster and net you more.

Staging: Our home staging service is available to RE/MAX Plus City clients — and in a market with this much inventory, staged units consistently outperform unstaged ones. Downtown condo buyers are sophisticated and have seen hundreds of listings. Presentation matters enormously.

Photography and marketing: Our listings receive professional photography, video walkthroughs, and comprehensive digital marketing. Your unit competes not just against similar buildings but against the entire inventory the buyer is considering. It needs to look exceptional.

Network and exposure: Through RE/MAX's platform and our own network of buyer clients actively searching the downtown core, we often know buyers who are looking for exactly what you're selling before the unit even hits MLS publicly.

Ready to Work With Downtown Toronto's Specialists?

Whether you're buying, selling, or investing in downtown Toronto's condo market, you deserve a team that knows this specific market at a building-by-building level.

RE/MAX Plus City — your downtown Toronto Realtors, based at 14B Harbour St in the heart of the city.

📞 647-259-8806 📧 info@remaxpluscity.com 🌐 remaxpluscity.com

Browse our active Downtown Toronto listings or request a free home evaluation for your downtown condo.

This article is for informational purposes only. Real estate market conditions change; all data reflects general trends as of May 2026. Contact RE/MAX Plus City for advice specific to your situation.

Toronto’s real estate market never stays quiet for long, but right now, the pre-construction condo sector is facing a massive, unprecedented reckoning.

If you bought a pre-construction unit at the market’s peak three to four years ago, you might be in for a shock. As closing dates rapidly approach, many buyers are discovering that the appraised value of their units has plummeted by roughly 25%.

For example, a condo purchased for $650,000 in 2021 might only appraise for $500,000 today. Because lenders base their financing on current appraisals, buyers are suddenly being hit with massive out-of-pocket shortfalls—sometimes exceeding $100,000—just to close the deal. This is leaving hundreds of buyers risking default, lost deposits, or even developer litigation.

The $1.3 Billion Intervention

With a growing glut of unsold inventory and buyers in distress, a massive intervention has stepped in. Real estate firm High Art Capital recently teamed up with a Crown agency, the Building Ontario Fund (BOF), to launch a $1.3 billion fund.

This public-private partnership is actively purchasing stalled GTA condo projects and converting them into long-term, affordable rental housing for Toronto's workforce. While organizers are adamant this isn't a "bailout," it is a drastic, market-driven shift designed to absorb excess inventory and address the city's missing middle.

What Should Toronto Buyers Do Now?

If there is one lesson to take away from the current pre-construction plunge, it’s that certainty is invaluable. While buying a blueprint used to be the gold standard for Toronto investors, today's high-interest, fluctuating market requires a much safer approach.

For buyers looking to avoid the massive risks of appraisal shortfalls and delayed closing dates, the resale market offers transparency and immediate possession. You know exactly what you are getting, and you know exactly what the bank will finance.

Navigating this changing landscape shouldn't be done alone. Whether you are looking for a move-in-ready condo, a detached home, or want to understand how these market shifts impact your current property's value, the experienced team at RE/MAX Plus City is here to help.

Visit RE/MAX Plus City today to browse active, tangible listings across the GTA and connect with an expert who can safely guide your next real estate move.

With recent updates to federal and provincial housing rebates, there is a lot of excitement—and a fair amount of confusion—regarding who actually qualifies. The government’s primary goal is to stimulate new construction and move existing inventory, meaning these incentives are strictly forward-looking.

To help you determine if you are eligible for these savings, we’ve broken down the most common questions we receive regarding Agreement of Purchase and Sale (APS) dates, investor eligibility, and anti-avoidance rules.

1. Does the rebate apply to homes purchased several years ago that haven't closed yet?

The Short Answer: No.

If you signed an APS with a builder in 2022, 2023, or any time prior to the new cut-off dates (March 20, 2025, or April 1, 2026, depending on the specific program), these new rebates do not apply to you.

The intention of both the federal and provincial governments is to encourage new sales and construction. Because your agreement was signed before these dates, your purchase is considered part of the "old" inventory and does not qualify for the enhanced rebate amounts.

2. Can I qualify for the rebate if I am an investor?

The Short Answer: Yes!

There is good news for those looking to expand their real estate portfolio. If you sign an agreement between April 1, 2026, and March 31, 2027, the expanded provincial rebate applies to properties purchased for investment purposes. This is a significant shift designed to keep the rental housing market moving.

3. Can I cancel my "old" APS and sign a new one for the same property to get the rebate?

The Short Answer: Absolutely not.

You may be tempted to "reset" your contract to take advantage of better terms, but the government has already accounted for this. Under federal anti-avoidance measures (which the province is expected to mirror), if an original agreement entered into before the eligibility date is canceled and replaced with a new agreement for the same property, the rebate will be firmly disallowed.

These rules are strictly enforced to prevent "gaming" the system and ensure the funds go toward genuinely new transactions.

4. Can I buy a property through an assignment sale to qualify?

The Short Answer: No.

If you purchase a property via assignment (taking over a contract from an original purchaser) after April 1, 2026, it does not reset the clock for rebate eligibility.

The Canada Revenue Agency (CRA) bases eligibility on the date the original agreement was signed between the builder and the initial purchaser (the Assignor). If that original contract pre-dates the March 20, 2025, or April 1, 2026, cut-offs, the property remains ineligible for the enhanced rebates, regardless of when you took over the contract.

Summary of Eligibility Dates

Key Takeaway

The new rebate landscape is designed to reward new buyers and investors who enter the market during the specified eligibility windows. If you are planning a purchase, timing is everything.

Planning to buy or invest? Make sure you speak with a qualified tax professional or real estate expert to ensure your Agreement of Purchase and Sale aligns with the current rebate requirements.

Ready to Maximize Your Housing Savings?

Navigating the New HST Rebate rules can be complex, and a single mistake in your APS timing could cost you thousands. Don't leave your tax savings to chance.

Contact Our Real Estate Experts Today for a personalized consultation on your next purchase. We’ll help you review your APS and ensure you’re positioned to take full advantage of the latest government incentives.

Disclaimer: This guide is for informational purposes only and does not constitute financial, legal, or tax advice. Government programs are subject to change. Consult a real estate lawyer or tax professional regarding your specific situation before signing any real estate contracts.

Let’s face it: breaking into the Toronto real estate market as a First-Time Home Buyer (FTHB) is tough. But if you’re looking at pre-construction or newly built homes, the landscape just shifted massively in your favor.

New federal and provincial tax rebates have been introduced that significantly improve the affordability of new builds compared to resale homes. By reducing the effective purchase price, these rebates can even improve your mortgage qualification outcomes under the stress test.

Here is everything you need to know about the new 2026 HST rebates—and what they mean for your wallet.

1. The Federal FTHB GST Rebate: Up to $50,000 in Savings

The Federal Government has officially approved Bill C-4 to exempt the 5% GST on new homes for First-Time Home Buyers.

• Homes under $1 Million: The 5% GST is completely eliminated. This is a savings of up to $50,000 on the purchase price!

• Homes between $1M and $1.5M: You receive a prorated portion of the 5% GST on a sliding scale.

• Homes over $1.5M: No federal rebate applies.

2. The Provincial FTHB PST Rebate: Up to $80,000 in Savings

Ontario announced its intention to mirror the Federal rebate, which was passed into law on March 12th, 2026. While the final provincial details are still being ironed out, the proposed relief is massive.

• Homes under $1 Million: Relief of the full 8% PST for FTHBs (up to $80,000).

• Homes between $1M and $1.5M: A prorated portion of the 8% PST.

(Note: Ontario is also proposing a temporary expansion of a full 13% HST relief up to $130,000 for agreements signed between April 1, 2026, and March 31, 2027, which even includes repeat buyers and investors!)

Let's Look at the Math: "Show Me The Money"

Tax percentages can be hard to visualize, so let's look at two real-world examples of how these combined rebates work:

Scenario A: Buying a $700,000 Home If you purchase a $700,000 home as a FTHB today, here is what your tax relief looks like:

• Legacy HST Rebate: $24,000 (already included in the sticker price)

• New Federal FTHB Rebate: $32,035.40 back

• New Provincial FTHB Rebate: $27,256.64 back

• Total Tax Relief: $83,292.04

Scenario B: Buying a $1,200,000 Home Because this home is over $1 million, the rebates are prorated on a sliding scale.

• Legacy HST Rebate: $24,000 (already included in the sticker price)

• New Federal FTHB Rebate: $41,681.42 back

• New Provincial FTHB Rebate: $42,690.27 back (Presumed calculation)

• Total Tax Relief: $108,371.69

Do You Qualify?

To take advantage of these massive savings, you must meet strict criteria:

• You must be 18+ and a Canadian citizen or permanent resident.

• You must be a true FTHB (neither you nor your spouse/partner have owned a home you lived in during the last 5 years).

• The home must be your primary residence, and you must be the first occupant.

• The Agreement of Purchase and Sale (APS) must be signed on or after March 20, 2025, and before the end of 2030.

🚨 Warning: Don't Try to "Game" the System 🚨

The CRA has strict anti-avoidance measures in place.

• No Do-Overs: You cannot cancel an old agreement and sign a new one to qualify. Your rebate will be firmly disallowed.

• Assignment Sales Don't Reset the Clock: Buying an assignment sale after April 1, 2026, does not qualify you if the original purchaser signed the contract with the builder before the eligibility dates.

How to Apply

If you sign an agreement between March 20, 2025, and March 31, 2026, you will likely need to pay the taxes upfront on closing and apply for the refund yourself through the CRA using Form GST190 and Form RC7190 ON. If you sign after April 1, 2026, you may be able to negotiate a clause where the builder handles the rebate on your behalf, reducing your balance directly on closing!

Ready to start your new home search? Navigating pre-construction contracts and tax rebates requires expert guidance. Contact the RE/MAX Plus City Team today to find out how much you can save on your first home. Visit us at www.remaxpluscity.com.

The Greater Toronto Area (GTA) housing market in March 2026 reflects a landscape shaped by both uncertainty and emerging opportunity. Whether you're looking to buy, sell, or simply keep a pulse on the local economy, understanding the nuances of today's market is crucial. Based on the latest insights from the RE/MAX PLUS CITY TEAM, here is a breakdown of what you need to know.

The Buyer’s Dilemma vs. Pent-Up Demand

Right now, ongoing global and economic events continue to weigh heavily on buyer sentiment. Concerns around supply chains, the rising cost of living, and broader economic uncertainty have prospective buyers questioning what to believe. For some, committing to a five-year mortgage FREE MORTGAGE CALCULATOR remains a significant challenge—particularly when employment outlooks feel less certain and negative headlines persist. As a result, many buyers remain on the sidelines, wondering whether home values and sales activity will continue to decline or whether today's conditions represent a window of opportunity.

However, the tide might be starting to turn. Signs of pent-up demand are becoming increasingly evident. More buyers, especially in the low-rise segment, are actively researching the market, educating themselves, and positioning to take advantage of improved affordability. This is translating into increased inquiries and a gradual rise in offer activity—particularly in neighbourhoods with historically strong demand and limited supply.

Tightening Inventory in the Low-Rise Segment

If you are looking at detached, semi-detached, or townhomes, you might be surprised by the current inventory levels. Here is what the data shows for the low-rise segment:

• Sales were down 4% year-over-year.

• New listings declined by 16%, marking the second consecutive month of declining inventory.

• While many anticipated more homeowners would enter the market amid affordability discussions, this trend was not widely expected.

• Instead, many sellers appear to be waiting for stronger conditions before listing their homes.

• This dynamic—higher sales alongside fewer new listings—resulted in tighter resale market conditions compared to last year.

The Condo Market Shift: From Unsold to Rentals

Much has been reported about elevated inventory levels in the condominium market and developers slowing or pausing new construction until existing supply is absorbed. However, an important and often underreported trend is emerging: a significant number of unsold condominium units are being absorbed in bulk and converted into rental housing.

One major example is the GTA Rental and Affordable Housing Initiative, a fund expected to be capitalized with a minimum of $1.3 billion. This initiative aims to acquire newly completed unsold units across the GTA and convert them into long-term rentals.

• Approximately 2,200 units are expected to be converted.

• This includes around 550 affordable units protected through title-based agreements.

• These affordable units will be priced at the lower of 25% below market rent or 30% of median household income.

While this initiative supports rental supply and affordability in the short term, it may reduce future ownership supply. Ultimately, this pipeline tightening could place upward pressure on prices over time as fewer new projects are launched and more existing units transition to rental use.

Government Policy and the Wait for Relief

There have also been positive policy developments recently. Announcements from federal and provincial governments regarding HST and development charge relief represent meaningful affordability initiatives designed to stimulate new home construction and sales activity. MORE INFO ABOUT HST + FREE ELIGIBILITY CALCULATOR

However, there has not yet been clear evidence that these savings are being passed on to buyers, and the industry has not seen these incentives reflected in end pricing to date. The hope remains that builders will ultimately pass these savings on, further supporting housing affordability and market momentum.

Takeaways for Buyers and Sellers

The overall market may appear measured, but micro-markets with tight supply and consistent demand are already demonstrating stronger activity.

• For Sellers: Success in today’s environment is increasingly tied to accurate pricing, strong presentation, and an understanding of neighbourhood-specific dynamics, rather than relying on broader GTA averages.

• For Buyers: The result is a market where uncertainty still exists—but so does opportunity. As we move further into the spring market, there is growing confidence among buyers that prices are stabilizing and may not decline significantly from current levels. Many buyers are no longer standing still; they are preparing, learning, and selectively acting.

If you're looking to navigate these tight micro-markets or have questions about the shifting condo landscape, reach out remaxpluscity.com

Welcome to the 2026 Toronto real estate market. For years, breaking into the housing market felt like an impossible math problem. You saved the down payment, but the sky-high monthly carrying costs and the strict mortgage stress test kept you locked out.

But with the federal government's recent overhaul of mortgage regulations, first-time buyers have been handed a massive new advantage.

By expanding the 30-year mortgage amortization to include all first-time homebuyers purchasing resale properties—not just new builds—the math has officially shifted. This single policy change can drop your monthly mortgage payment by roughly 9%, instantly transforming how you shop for your first condo or townhome.

Here is a straightforward breakdown of the new rules, the hard numbers, and what it means for your homeownership journey in Toronto.

The New Rule: 30 Years for Everyone

Historically, if you had less than a 20% down payment (requiring a high-ratio insured mortgage), you were strictly capped at a 25-year amortization. This meant your loan had to be paid off in 25 years, resulting in steep monthly payments that disqualified many young buyers.

The recently expanded rules completely changed the landscape:

• The Expansion: All first-time homebuyers can now access a 30-year amortization, regardless of whether they are buying a brand-new pre-construction unit or a 20-year-old resale condo.

• The Down Payment: You still only need a minimum 5% down payment (on the first $500,000) to qualify.

• The Goal: Stretching the loan over an additional five years shrinks your required monthly payment, making it easier to pass the stress test and comfortably afford your carrying costs.

The Math: Breaking Down the 9% Drop

How much does five extra years actually save you month-to-month? Let’s look at a realistic scenario for a Toronto starter home.

Imagine you are buying a $600,000 entry-level condo or townhome. You have a 10% down payment ($60,000), meaning you need a $540,000 mortgage. Let's assume a fixed interest rate of 5%.

By extending your amortization to 30 years, your payment drops by roughly 8.5% to 9%. That is nearly $260 back in your pocket every single month.

Why This Makes Starter Condos and Townhomes Viable

A $260 monthly reduction might not sound like lottery money, but in the Toronto real estate market, it is often the difference between a mortgage approval and a rejection. Here is why this matters:

• Easier Stress Test Qualification: Lenders look at your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios. Because your required monthly payment is lower, the income required to qualify for the mortgage drops. You can now qualify for a larger purchase price with the exact same salary.

• Breathing Room for Condo Fees: For first-time buyers eyeing the condo market, monthly maintenance fees are the ultimate budget killer. The 9% drop in your mortgage payment perfectly offsets a typical $250 to $350 monthly condo fee, making that starter unit viable again.

• Day-to-Day Cash Flow: That extra buffer helps cover Toronto's high cost of living, property taxes, or utility bills, keeping you from becoming "house poor" the moment you get the keys.

The Reality Check: The Cost of Time

While lower monthly payments are a massive win for getting your foot in the door, we need to be completely candid about the trade-off.

The longer you take to pay off a loan, the more interest you pay to the bank. Over the full 30-year lifespan of the mortgage, that extra five years means tens of thousands of dollars in additional interest.

However, you are not locked into 30 years forever. As your career advances and your income grows, you can take advantage of prepayment privileges. You can increase your monthly payments, drop annual lump sums onto your principal, or refinance to a shorter amortization down the road. The 30-year rule is a strategic stepping stone to get you into the market today; it does not have to be a life sentence.

Your Next Move

The expanded 30-year amortization rule has leveled the playing field for Toronto's first-time buyers. That resale townhome in Etobicoke or starter condo in Scarborough that was just out of reach last year might now fit perfectly into your budget.

If you have been sitting on the sidelines, it is time to rerun your numbers. Reach out to a mortgage professional, get pre-approved under the new 30-year guidelines, and start exploring the market with your new purchasing power.

Visit and contact remaxpluscity.com for more info!