Mortgage Minute: Toronto Buyer’s Market Emerges & Big News for Business Owners

This week, the story in Canadian real estate is about a clear and significant shift in the Toronto housing market. For the first time in years, buyers are gaining a strategic advantage, while important conversations at the regulatory and fiscal levels could reshape the future of lending, especially for business owners.

Here is what you need to know.

Toronto Market Tilts in Favour of Buyers
The Toronto real estate market, particularly the condo segment, is rebalancing. The average condo price in the city dropped 4.3% year-over-year to its lowest point in at least four years.

This shift is driven by an increase in listings, giving buyers more choice and, more importantly, significant negotiating power. While national home sales dipped in September, Royal LePage notes that well-prepared buyers in the GTA are now in a prime position to capitalize on these changing dynamics.

Good News on the Horizon for Business Owners
Entrepreneurs and self-employed professionals received promising news from two different directions this week.

First, Canada’s top banking regulator, OSFI, has signalled a major potential shift in lending. Superintendent Peter Routledge stated he is willing to be “a little bit less conservative” to increase competition in business lending.

This regulatory shift is complemented by news from the Finance Minister, who stated the upcoming Nov. 4 budget will focus on “crowding in” private investment and creating an “investor-friendly policy”. Together, this signals a potential two-pronged effort to support Canadian business.

Supply Challenges Continue to Impact Affordability

While housing starts saw a jump in September, this was overwhelmingly driven by rental apartment construction in Toronto and Montreal. The bigger picture shows persistent headwinds for new supply.

The value of new building permits has fallen for two consecutive months, hampered by challenges like high municipal development fees and the risk of new U.S. tariffs on Canadian lumber. On a positive note, the IMF has singled out Canada as having the “fiscal room to spend big on housing [and] infrastructure”, which will be a key area to watch in the new budget.

My Take: What This Means For You
The message from the market is clear: opportunity favours the prepared.

For buyers, this is a rare window to negotiate from a position of strength. For business owners, the coordinated signals from both the bank regulator and the Finance Minister are a critical development to watch.

Both scenarios underscore the need for a clear, proactive mortgage strategy to navigate the shifting landscape effectively.