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Something has shifted in the GTA housing market in 2025.

Three separate changes converged at the same time—and they’re creating an opportunity window for first-time buyers that hasn’t existed in years.

I’m talking about the introduction of 30-year amortizations for first-time buyers, the increase in the insured mortgage cap from $1 million to $1.5 million, and falling home prices across the region.

Individually, each change matters. Together, they’re fundamentally reshaping what’s possible.

Here’s what the numbers actually look like.

A $1.5 million home used to require a $300,000 down payment. Now you need $125,000. That’s a $175,000 difference—the kind of gap that kept entire segments of buyers locked out of starter homes and stuck in condos.

The 30-year amortization adds another layer. On a $1.5 million purchase, extending from 25 to 30 years reduces your monthly payment by roughly $710 and lowers the annual income required to qualify by about $20,000.

You’re not just getting easier access. You’re getting breathing room.

First-time buyers I’m working with are jumping at the 30-year option. The reason is simple but often misunderstood.

You can always shorten your amortization later. You cannot extend it without refinancing.

This creates strategic flexibility. You can make lump-sum payments, increase your monthly payment as your income grows, or shorten your amortization at renewal. The 30-year starting point preserves options while keeping mandatory payments manageable.

And here’s the part most people miss: the 30-year amortization is only available to true first-time buyers. Buy a $900,000 condo now, and you lose access to this option when you upgrade to the home you actually want.

Let’s walk through the real cost of the traditional stepping stone approach.

Buy a $900,000 condo, then upgrade to a $1.5 million home a few years later. You’ll pay roughly $20,000 in land transfer tax on the condo (as a first-time buyer), then up to $60,000 in land transfer tax on the home (losing first-time buyer status), plus $45,000-$50,000 in real estate agent fees on the condo sale.

That’s $75,000 burned on transaction costs—capital that could be building equity or generating returns.

The new policies let some buyers skip this entirely. If you can afford the $1.5 million home now with the extended amortization and lower down payment, you avoid the stepping stone altogether.

The $710 monthly savings from the 30-year amortization creates room for something important: retirement savings.

The math is straightforward. If you can get 8-10% compound returns on investments versus paying down a mortgage at 4% simple interest, your money works harder in the market—especially in your 30s when time is your biggest advantage.

I’m not suggesting you ignore your mortgage. I’m suggesting you don’t sacrifice powerful compounding years just to shave a few years off your amortization. You can always accelerate mortgage payments later as income grows.

These policy changes don’t make sense for everyone.

I pump the brakes when I see buyers stretching for space they won’t need for a decade. If you’re single or a couple with no immediate family plans and a 10-year horizon before upgrading, the reduced expense of a smaller home makes more sense. You’ll build savings faster and stay flexible.

The sweet spot is buyers facing near-term family growth who will outgrow a condo unit quickly. That’s where extending yourself strategically pays off.

The policy changes alone would be significant. But they’re happening during a market correction.

GTA home prices are unwinding the excessive growth from 2020-2022. That FOMO-driven surge is coming back down. Coupled with economic uncertainty keeping many buyers on the sidelines, you’re seeing less competition and more time to make decisions.

This double opportunity—improved policy plus reduced competition—won’t last forever. But I don’t see urgency around prices rebounding quickly. The downward pressure will likely continue short-term as the market finds its footing.

Locking into a 30-year amortization doesn’t mean you’re stuck with it for 30 years.

Monitor your mortgage actively. When you get a raise or bonus, split the increase between retirement savings and mortgage acceleration. Even small increases—$50 or $100 monthly—compound significantly over time.

The goal is balance. You’re building wealth through home equity while preserving cash flow for other financial priorities.

If you want clarity on how the GTA affordability window affects your buying power, make sure your mortgage strategy reflects the changes coming in 2025.

Build a realistic budget. Get pre-approved. Understand your limits. Then test those numbers against what’s available in the market.

The upfront work lets you move quickly when you find something that fits your plan. And right now, with inventory sitting longer and less competition, you have time to be strategic.

This window is real. The question is whether you’re positioned to take advantage of it.

Book a consultation and let’s map out your path together, so your next move isn’t a guess… it’s a strategy.

Your renewal should open doors —
not close them.I’m hosting a 2026 Mortgage Renewal Masterclass, that walks you through everything you need to think about when going through your renewal.