Is the Toronto real estate market immune to roadblocks?

The Canadian real estate market has faced a number of roadblocks in recent years, many designed to slow down a heated market – but these obstacles don’t seem to have had any impact on investors in Toronto.

“The Toronto market is a very unique animal,” said Steve Arruda, an investor and Realtor at Keller Williams Neighbourhood Realty.

“It’s very resilient. Now, with the lower rates [from the Bank of Canada], the unbalanced market is going to continue.”

Potential obstacles include the mortgage changes brought in by the former Finance Minister in 2012, the addition of a land transfer tax on properties in Toronto, and the changes to the timeline necessary to qualify for the HST rebate.

“There has always been some type of hurdle,” added Arruda. “But none of those roadblocks have slowed the market down at all. It’s like throwing a pebble into the river trying to slow down the flow.”

And, unsurprisingly, the Toronto housing market continues to be very competitive with lots of bidding wars.

“Land is finite so they’re not building more single-family homes downtown,” said Arruda. “So it’s very competitive, but it’s been that way for a while.

“Now that the interest rates have been reduced, it’s become more heated, making affordability a lot easier for some people who were barely able to afford property. Now they can.”

Find out more about median house prices, capital growth and demographics in Toronto and other Canadian cities with CREW’s free online Investment Hotspot tool.

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  • by SS 2015-03-06 3:47:19 PM

    Lol, whenever I hear remarks like "immune to a roadblock or correction" it seems to be the first sign of a market headed for a correction.

  • by Andrew Nagy 2015-03-06 4:21:23 PM

    An economy like micro economics has its ups and downs, just like stock markets, gas prices, and the us Fanny May and Freddy Mac fiasco, Ponzi schemes, the markets in Canada can not keep going up since 1993 which is the case, there is going to be a collapse, and we are just banking on the 25-35 year old generation right now to by into an unreal situation, which when they have bought and there are no jobs of subsistence for the generation behind them with any purchasing power, reality will set in, and this is happening faster than we realize, because, it's now, 6 months maybe less or more, but not much, the German "bank" has already said we are hugely overpriced, perhaps up to 60% in valuation, which I agree...... the Greek economy can be brought down, the US suffered indignities in huge amounts that cost the citizens, we are not immune.

  • by Irene Wu 2015-03-06 5:03:51 PM

    Immune for now, but for how long? Anyone dare to predict?

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