Hey there, Toronto condo owners! If you’re a young couple juggling a little one—or planning to start a family—and feeling like your downtown condo just isn’t cutting it anymore, you’ve probably been wondering if now’s the right time to make that move into a larger home. With interest rates shifting and new mortgage rules in full swing, there’s a lot to unpack. Let’s break it down so you can make a smart, informed decision as we head into 2025.

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1. The Market Isn’t Revolutionizing—But It’s Moving in the Right Direction

Let’s set the record straight: The Toronto real estate market isn’t doing a 180 overnight, but we are seeing signs that the wheels are starting to turn. Last week’s half-percent interest rate cut by the Bank of Canada and the December 15th mortgage rule changes are already influencing buyer behavior. That doesn’t mean prices are going to skyrocket tomorrow—but it does mean the needle is moving.

For anyone who sat around waiting for a rock-bottom market, you might have missed that window. Buyers are already taking note of improved borrowing conditions, and it’s only a matter of time before more of them jump back in. Think of this as a gentle nudge in the right direction—one that could make your move-up purchase much more strategic.

2. Interest Rates Took Another Tumble—Here’s Why That Matters

Interest rates have ticked down again, and while we might see more adjustments by mid-2025, today’s rates are already giving buyers a boost. A modest drop in interest rates can stretch your budget just enough to afford a home that better fits your growing family’s needs—all while staying closer to those coveted downtown amenities.

If you’re currently paying off a variable-rate mortgage, this latest cut might mean around $100 less per month on a $400,000 loan. Not bad, right? And if you’re due for a renewal soon, now’s the time to talk to your lender. Locking in a more favorable rate could be a smart move as we head into a busier market.

3. Mortgage Rule Changes Open New Doors—But Don’t Wait Too Long

Remember those new mortgage rules that came into play on December 15th? We’re talking about a higher insured mortgage limit (up to $1.5 million) and the option of 30-year amortizations for certain buyers. This could mean more flexibility as you look to trade up from a condo to a family home.

Keep in mind that these changes don’t make homes magically cheaper in the long run, but they can help you qualify for something more spacious while keeping monthly payments manageable. The catch? Once the market fully absorbs these changes and interest rates potentially dip again, you’ll be competing with even more buyers who realize they can now afford that extra bedroom or backyard.

4. TRREB Stats Show We’re Already on the Move

Need proof that the market is warming up? According to the Toronto Regional Real Estate Board (TRREB), GTA home sales jumped by over 40% year-over-year in November 2024, while the average selling price rose 2.6%. Many of those buyers who were waiting are coming back, and they’re finding conditions that are starting to favor an active market.

Now is your chance to list your condo and move up before everyone else catches on. By selling now, you’re getting ahead of buyers who will flood the market once rates potentially drop further—and that could mean selling faster and buying smarter.

5. Timing Is Everything in a Busy 2025

Don’t wait until the market is teeming with eager buyers to start your search. By making moves now—getting pre-approved, speaking with your mortgage broker, and prepping your condo for sale—you position yourself to trade up before the crowd realizes what’s happening. The coming year is poised to be busier, and acting sooner rather than later could mean better prices, less competition, and a smoother transition into your new family home.

Need More Insights? Check Out These Helpful Reads Next:

• The 2024 Toronto Real Estate Outlook: A Tactical Guide for Condo Owners Upsizing in the City
• Tiny Residents, Big Impressions: How to Stage Your Toronto Condo for Sale with Kids and Pets in Mind
• Toronto Condo Living with Kids: The Ultimate Survival Guide

Ready to Make Your Move?
If you’re feeling a bit of FOMO right now, you’re not alone. Real estate is all about timing, and this moment could be your best shot at securing a family home that suits your changing lifestyle. With interest rates down, new mortgage rules easing entry, and TRREB’s numbers signaling an uptick, there’s no need to wait for the “perfect” moment—it’s already here.

Let’s Make Moves Together.
Contact Homeplicity Realty Group at Keller Williams today at 647-973-8392 and let’s strategize your next steps. Whether you’re navigating your first move-up purchase or simply need some guidance, we’re here to help.

Here’s to making smart, family-focused moves in Toronto’s evolving real estate landscape—2025, here we come!