The Greater Toronto Area (GTA) housing market closed out 2025 with a clear message: affordability is improving, and the stage is being set for recovery. As economic uncertainty and elevated inventory levels weighed on consumer confidence throughout the year, we saw a cooling in sales volume and a downward negotiation on selling prices.

For buyers, this "challenging market" has created a unique window of opportunity. With the average selling price across the GTA dipping to $1,006,735 in December (down 5.1% year-over-year), improved affordability is finally becoming a reality. As TRREB President Daniel Steinfeld noted, once confidence in the economy and labour market solidifies, we expect pent-up demand to drive sales back up.

Here is a deep dive into how the 416 (City of Toronto) and 905 (Suburban GTA) markets performed by property type in December 2025.

🏡 Detached Homes

The detached market remains the premium segment, but buyers are finding significantly more room to negotiate than in previous years. Both the 416 and 905 regions saw price corrections, offering relief to families looking for more space.

• 416 (Toronto Core)

  • Sales: 413 transactions.

  • Average Price: $1,498,079.

  • Trend: Prices in the city dropped by 4.5% year-over-year. While still the most expensive segment, this dip brings the entry point for city detached living slightly lower.

• 905 (GTA Suburbs)

  • Sales: 1,277 transactions.

  • Average Price: $1,239,882.

  • Trend: The suburbs saw a steeper decline, with prices down 7.0% compared to last December. This suggests that the "exodus to the suburbs" premium has cooled, restoring better value for money in the 905.

Insight: If you are a move-up buyer, the gap between selling a smaller home and buying a detached property has narrowed, particularly in the 905 region.

🏘️ Semi-Detached Homes

Semi-detached homes often serve as the bridge between condos and detached living. In December 2025, this segment experienced the most significant price adjustments, particularly in the 416.

• 416 (Toronto Core)

  • Sales: 122 transactions.

  • Average Price: $1,122,309.

  • Trend: A sharp year-over-year price decline of 12.2%. This correction makes semi-detached homes in the city one of the most attractive value propositions for buyers right now.

• 905 (GTA Suburbs)

  • Sales: 201 transactions.

  • Average Price: $857,237.

  • Trend: Prices dropped by 9.9%. With an average price well under the $1M mark, 905 semis are a prime target for first-time buyers stretching their budgets.

Insight: The double-digit drop in the 416 suggests sellers must be incredibly sharp with pricing. Buyers in this segment are price-sensitive and willing to wait for the right deal.

🏙️ Townhouses

Townhouses presented a tale of two markets in December. While the suburbs followed the general cooling trend, the City of Toronto townhouse market showed unexpected resilience.

• 416 (Toronto Core)

  • Sales: 127 transactions.

  • Average Price: $976,161.

  • Trend: Surprisingly, this was the only segment to show growth, with prices up 5.4% year-over-year. This indicates strong demand for freehold alternatives within the city limits.

• 905 (GTA Suburbs)

  • Sales: 486 transactions.

  • Average Price: $832,199.

  • Trend: In contrast, the 905 saw prices decline by 9.0%. The significant price gap between a 416 and 905 townhouse (approx. $144k) is likely driving some buyers to look further afield for value.

Insight: The strength of the 416 townhouse market suggests that buyers who are priced out of detached homes are aggressively competing for these units, keeping prices buoyant.

🏢 Condo Apartments

The condo market continues to face headwinds with elevated inventory levels, allowing for selling prices to be negotiated downward. This sector remains the most affordable entry point into homeownership.

• 416 (Toronto Core)

  • Sales: 694 transactions.

  • Average Price: $663,227.

  • Trend: Prices are down 7.2% year-over-year. With the average price sitting in the mid-$600s, affordability for singles and young professionals has improved noticeably.

• 905 (GTA Suburbs)

  • Sales: 335 transactions.

  • Average Price: $555,110.

  • Trend: The suburban condo market softened further, with a 9.5% price drop. This brings the average price dangerously close to the $550k mark, offering exceptional value for investors or first-time buyers.

Insight: With listing inventory remaining elevated, condo buyers have the luxury of choice and time. Sellers must focus on presentation and strategic pricing to stand out in a crowded market.

Final Thoughts & Recommendation

The December 2025 statistics paint a picture of a market in transition. While sales are down 11.2% overall for the year , the "improved affordability" narrative is the silver lining that will likely spark the recovery.

For Buyers: The current climate allows you to negotiate selling prices downward. You have the leverage today that you may not have tomorrow once economic confidence returns.

For Sellers: The days of "listing and waiting for a bidding war" are paused. With inventory up and prices adjusting, you must price ahead of the market, not chase it down. As Jason Mercer, TRREB Chief Information Officer, noted, households need to be confident in their employment before committing, meaning your property needs to scream "value" and "security" to attract serious offers.

Want a personalized pricing strategy for your property?

Let’s chat and position your home ahead of the market—not behind it.

Introduction: A New Path for Toronto Real Estate Investors

For investors in the Greater Toronto Area, the rules of multi-unit real estate have fundamentally changed. Profitability is no longer just about location and market timing; it's about purpose. The government's most powerful financing tool, the CMHC MLI Select program, has been redesigned to directly link an investor's financial success to their project's social and environmental impact. This guide is your strategic playbook for mastering this new equation.

As a commercial mortgage broker specializing in CMHC financing, I will break down the core components of MLI Select, explain the critical new rules that took effect in 2025, and provide a clear blueprint for how you can leverage this program to achieve your financial goals while making a meaningful contribution to housing affordability and sustainability.

1. The Big Picture: Understanding the GTA's Current Rental Market

Before diving into the specifics of MLI Select, it's essential to understand the landscape you'll be operating in. The 2025 CMHC Rental Market Report revealed several key dynamics that every new investor in the GTA should be aware of.

• Softening Market Conditions

  • An increase in rental supply combined with weaker demand from renters has caused vacancy rates to rise. For the first time since the pandemic, the vacancy rate for purpose-built rental apartments in Toronto reached 3.0%. For an investor, this means a slightly less frantic market, but also more competition to attract and retain tenants.

• The Key Role of Tenant Turnover

  • While average rents for new tenants have stalled or even declined slightly, overall rent growth is still happening. The primary driver of this increase is tenant turnover. When a unit becomes vacant, landlords can reprice it to current market rates, which are often significantly higher than what a long-term tenant was paying. This makes managing turnover a critical part of a landlord's financial strategy in Toronto.

• Competition from Condominiums

  • The GTA has seen a surge in condominium apartments being offered on the rental market. As the ownership market has weakened, many condo owners have opted to rent out their units instead of selling. This influx of newer, often well-located units adds significant competitive pressure to the traditional, purpose-built rental market.

• Persistent Affordability Challenges

  • Despite the overall vacancy rate rising, the market for the most affordable rental units remains extremely tight. The vacancy rate for the least expensive units is under 1%, indicating that demand from lower-income renters far outstrips supply.

These trends highlight a core challenge: while the market is competitive, there is a clear and pressing need for specific types of housing, particularly affordable units. This is precisely the gap that the CMHC MLI Select program is designed to fill.

2. What is the CMHC MLI Select Program? A Powerful Tool for Investors

In simple terms, MLI Select is a mortgage loan insurance product offered by CMHC. Its core purpose is to incentivize private developers and investors to create multi-unit rental properties that help solve Canada's most pressing housing challenges: affordability, energy efficiency, and accessibility. In exchange for building projects that meet these social goals, CMHC provides insurance that unlocks exceptional financing terms from lenders.

For an investor, the benefits are transformative compared to conventional financing:

• Higher Leverage

  • The program allows for a Loan-to-Value (LTV) or Loan-to-Cost (LTC) of up to 95%. This means you could potentially secure financing with a down payment as low as 5%, dramatically reducing the initial capital required to get a project off the ground.

• Longer Amortization

  • MLI Select offers amortization periods of up to 50 years. A longer amortization significantly lowers monthly mortgage payments, which improves your property's monthly cash flow and makes projects more financially viable, especially in the early years.

• Better Financing Terms

  • Because CMHC insurance protects the lender against default, lenders can offer lower interest rates and reduced insurance premiums compared to conventional commercial loans. This reduces the overall cost of borrowing over the life of the mortgage.

These powerful incentives are not automatic. To unlock them, your project must score points in a system designed to measure its social and environmental impact.

3. The Heart of the Program: Mastering the MLI Select Points System

The entire MLI Select program is built on a points system. The more points your project scores, the better the financing terms you can access. To qualify, a project must achieve a minimum of 50 points, but savvy investors aim for 100+ points to maximize their benefits. Points are awarded across three "pillars":

• Affordability

  • This is achieved by committing to rent a certain percentage of your units at or below 30% of the local median renter income. This commitment must be maintained for at least 10 years.

• Energy Efficiency

  • Points are awarded for designing a new building or retrofitting an existing one to achieve energy consumption and GHG emission reductions that exceed the standards of the National Energy Code.

• Accessibility

  • This involves incorporating universal design principles and accessibility features for people with mobility challenges, based on standards like the CSA B651:23. This can range from making common areas barrier-free to ensuring a percentage of units are fully accessible.

Illustrate the Tiers of Success

For a new construction project, the benefits scale directly with your point score. The strategic goal is to reach 100 points to unlock the best possible terms.

A Strategic Blueprint for Success

Reaching 100 points is more achievable than it might seem, especially when you leverage long-term commitments. Here is a cost-effective "100-Point Blueprint" for a hypothetical 12-unit new construction project in Toronto:

1. Pillar 1: Affordability (80 Points)

   • Commit just 10% of your units (2 out of 12) to affordable rents. This initial commitment earns 50 points.

   • Critically, commit to maintaining these affordable rents for 20+ years instead of the minimum 10. This long-term commitment grants a +30 point bonus.

   • Total Affordability Score: 80 Points

2. Pillar 2: Accessibility (20 Points)

   • Design the building to meet the mandatory accessibility baseline: 100% of units must be "visitable" and all common areas must be barrier-free, as defined by the CSA B651:23 standard.

   • Ensure a minimum of 15% of the total units (2 out of 12) are fully accessible according to CSA standards. This combination earns 20 points.

   • Total Accessibility Score: 20 Points

3. Pillar 3: Energy Efficiency (0 Points)

   • With 100 points already achieved through affordability and accessibility, no additional points are needed from this pillar. This allows you to build to the standard 2020 National Building Code without incurring the extra costs associated with higher-tier energy efficiency measures.

This strategic approach allows an investor to unlock the maximum financing benefits while minimizing additional construction costs. Understanding this points system is the first step; the next is navigating the new cost structure that CMHC introduced in 2025.

4. The New Math (Post-July 2025): How Your Premium is Calculated

For applications submitted on or after July 14, 2025, CMHC overhauled its premium structure for multi-unit mortgage insurance. It is now essential for investors to understand this new "risk-based" pricing to accurately model a project's financial returns. The final premium you pay is now a three-part calculation.

1. Base Premium Rate

   • This is your starting point. The rate is determined primarily by your project's risk, which CMHC measures through the Loan-to-Value (LTV) or Loan-to-Cost (LTC) ratio and whether it's a new construction or an existing property. Simply put: the higher your leverage, the higher your base premium.

2. Applicable Surcharges

   • Additional fees are added on top of the base premium for certain features that increase the loan's risk. The most common surcharge is for extended amortization periods. Any amortization beyond 25 years will have a surcharge added.

3. MLI Select Discount

   • This is your reward for achieving social outcomes. Based on your project's point score, a percentage discount is subtracted from the total of your Base Premium and Surcharges. The discounts are:

     • 50 Points: 10% discount

     • 70 Points: 20% discount

     • 100+ Points: 30% discount

Show, Don't Just Tell

The power of aiming for 100 points becomes clear when you compare two financial models. Let's look at a "Minimum Viable" 50-point project versus a "Strategic Max-Out" 100-point project.

The "So What?"

The table reveals a crucial insight: the 100-point strategy is financially superior. Even though Project B uses higher leverage (95% vs. 85%) and a longer amortization (50 vs. 40 years)—both of which increase the raw premium—the powerful 30% discount results in a lower final premium rate. An investor using the 100-point strategy puts less money down, improves their monthly cash flow, and—counter-intuitively—still pays less in total insurance costs. This is the new math of purpose-driven investment.

5. The Gates to Entry: Verifying Borrower and Project Eligibility

Before you can even begin scoring points, you and your project must meet CMHC's fundamental eligibility requirements. These are the non-negotiable gates to entry.

Borrower Requirements Checklist

• Experience: You must have a minimum of 5 years of experience managing similar multi-unit residential properties.

  • Alternative: If you lack this experience, you can satisfy the requirement by having a formal contract with a professional third-party property management firm.

• Net Worth: You must have a minimum net worth equal to at least 25% of the total loan amount, with an absolute minimum of $100,000.

  • Strategic Note: CMHC may offer flexibility on this requirement for projects that achieve 100+ points.

Project Requirements Checklist

• Minimum Size: The property must have at least 5 rental units.

• Mixed-Use Limits: If the property includes commercial space (e.g., retail on the ground floor), the non-residential portion cannot exceed 30% of the gross floor area or 30% of the total lending value.

• Foreign Ownership: The project cannot be subject to the Prohibition on the Purchase of Residential Property by Non-Canadians Act.

Once you've confirmed you meet these baseline criteria, you can move forward with the application process.

6. The Application Roadmap: A 5-Step Process from Submission to Funding

The application process for an MLI Select-insured loan is thorough and requires careful planning. Understanding the timeline and key milestones is crucial for managing expectations.

1. Initial Application & Deposit

   • Submit your application forms and signed attestations (for affordability, accessibility, etc.) to a CMHC-approved lender. At this stage, you will pay the initial application deposit and application fees (calculated based on the number of units).

2. Lender Financial Review (Approx. 10-14 days)

   • The lender performs its own due diligence. They will review your financials, analyze the project's pro forma, and ensure the deal is viable before submitting it to CMHC.

3. CMHC Review & Final Deposit (Approx. 3-6 months)

   • Once the lender approves the package, it is sent to CMHC for their detailed review. This is the longest part of the process. A second deposit payment is typically due at this stage.

4. Approval & Construction Draws

   • Upon successful review, CMHC issues a Certificate of Insurance. This is the official approval. The loan is finalized, and if it's a new build, construction draws can begin.

5. Completion & Final Attestations

   • After construction is complete, you must provide the final signed attestations from qualified professionals (e.g., an energy advisor or architect) to your lender. This must be done within 60 days of the final loan disbursement to confirm you've met your commitments.

7. Conclusion: Your Blueprint for a Successful Investment

The CMHC MLI Select program represents a fundamental shift in how multi-unit rental projects are financed in the GTA. It is a strategic tool where financial success is directly linked to achieving positive social and environmental outcomes. The days of treating affordability or accessibility as optional add-ons are over; under the new 2025 rules, they are the core drivers of profitability.

For new investors, the path to success is clear: engage in careful, early-stage planning. Model your project to achieve 100 points from day one. By strategically leveraging the long-term affordability commitment and baseline accessibility standards, you can unlock the program's maximum benefits—higher leverage, longer amortization, and lower premiums—creating a more resilient and profitable investment for your future.

1. Introduction: Turning Toronto Homeownership Dreams into Reality

For many aspiring first-time home buyers, the Greater Toronto Area (GTA) housing market can feel impossibly out of reach. The dream of ownership often seems to clash with the reality of high prices and intense competition. However, a unique window of opportunity is opening in 2026, driven by a combination of key market shifts and the most significant government incentives seen in recent memory.

This guide provides a clear, step-by-step roadmap for navigating the 2026 GTA market. Its purpose is to demystify the powerful new federal and provincial rebate programs that can dramatically increase your purchasing power and turn the dream of homeownership into a practical, achievable plan.

2. The 2026 GTA Real Estate Landscape: A First-Time Buyer's Perspective

After a significant decline in sales volume in 2023, the Ontario housing market stabilized through 2024, creating a more balanced environment for buyers. For first-time home buyers (FTHBs), condominiums in particular represent a key opportunity to enter the market.

Market data reveals several important trends:

• Condos Are Leading the Recovery: In the 12 months leading up to June 2024, condo sales volumes recovered faster than other property types, showing an 8.3% year-over-year increase.

• Condos Are the FTHB Entry Point: In the first half of 2024, condo properties accounted for a significant 43.9% of all purchases made by first-time home buyers.

• A Price Opportunity Exists: Condo prices across the GTA have cooled, creating a potential buying advantage. While the City of Toronto saw a modest 5.1% year-over-year decline in the third quarter of 2025, surrounding regions experienced even more dramatic drops. Halton region saw condo prices fall by 12.1% and Peel region by 11.5% in the same period, powerfully reinforcing the case for looking beyond the downtown core.

First-time buyers have proven to be a resilient and stable segment of the market, consistently comprising between 20% and 23.6% of all property purchases since 2011. While Toronto remains the top destination for FTHBs, accounting for approximately 20% of activity, its popularity is waning due to affordability challenges. This has led a growing number of buyers to explore surrounding GTA regions like Peel, York, and Durham, as well as emerging communities like Waterloo, in search of better value.

3. The Game-Changer: Unlocking Up to $130,000 in New Home Rebates

The single biggest financial benefit for first-time buyers in 2026 is a set of new, coordinated Harmonized Sales Tax (HST) rebates from the federal and provincial governments. Aimed at buyers of newly built homes, these programs can dramatically reduce the upfront cost of a purchase.

3.1. The Federal First-Time Home Buyers’ GST Rebate

The Government of Canada has proposed a new rebate that removes the 5% federal portion of the HST—the Goods and Services Tax (GST)—for qualifying first-time home buyers purchasing new homes. This measure provides substantial savings directly at the point of purchase.

3.2. Ontario's Matching HST Rebate

The Ontario government has announced its intention to match the federal initiative by rebating the full 8% provincial portion of the HST on qualifying new homes priced up to $1 million.

Crucially, this provincial rebate is conditional. It will only proceed if the federal government's proposed changes to the GST are formally passed into law.

This new program works by enhancing Ontario's existing HST New Housing Rebate. The previous rebate was worth up to $24,000; the new program, when combined with the old one, ensures the full 8% provincial tax is rebated on qualifying new homes up to the $1 million threshold.

3.3. Putting It All Together: A Hypothetical Example

The combined impact of the federal and provincial rebates is transformative. For a first-time buyer purchasing a new home at the $1 million price point, the entire 13% HST could be eliminated, resulting in a six-figure savings.

Example: Combined Savings on a $1,000,000 New Home

3.4. Are You Eligible? Key Criteria for the Rebates

To qualify for these new HST/GST rebates, you and the home you are purchasing must meet specific criteria.

• Who Qualifies:

    ◦ You must be a first-time home buyer, defined as not having owned a home you (or your spouse/common-law partner) lived in within the last four calendar years.

    ◦ You must be at least 18 years old and a Canadian citizen or permanent resident.

• What Homes Qualify:

    ◦ The property must be a newly built home or a substantially renovated home. Resale properties do not qualify.

    ◦ The home must be intended for use as your primary place of residence.

• Important Timing:

    ◦ The rebates apply to purchase agreements entered into on or after May 27, 2025, and before 2031.

4. Your Practical Roadmap to Homeownership in 2026

With this new landscape in mind, here are four actionable steps to begin your journey.

4.1. Step 1: Secure Your Financing

The first and most critical step is to get pre-approved for a mortgage. This will give you a clear understanding of your budget and show sellers and builders that you are a serious buyer. For first-time buyers in urban areas like the GTA, the Big 5 Banks are the dominant lenders, accounting for 70% of all FTHB financing activity in the first half of 2024.

4.2. Step 2: Understand Your Costs and Savings

Beyond your down payment, you will need to budget for closing costs, which include legal fees and land transfer tax. The new HST/GST rebates, offering up to $130,000 in savings, are a massive benefit that can significantly offset these upfront costs. It’s also important to remember that as a first-time buyer in Ontario, you already benefit from the provincial Land Transfer Tax Rebate, which further reduces your closing expenses.

4.3. Step 3: Find an Expert Guide

The 2026 market is defined by new opportunities and complex programs. It is essential to work with a real estate agent and a mortgage broker who specialize in the first-time home buyer market. An expert guide will be deeply familiar with the eligibility rules and application processes for these new rebates, ensuring you can maximize your savings.

4.4. Step 4: Focus Your Search

Use the current market data to your advantage. Condos are the most accessible entry point into the market, and the recent cooling of condo prices presents a strategic opportunity to buy. To get the most for your budget, broaden your search beyond Toronto's core. Regions like Halton and Peel have recently seen double-digit declines in condo prices (down 12.1% and 11.5% year-over-year, respectively), creating significant buying opportunities that are increasingly popular with first-time buyers.

5. Conclusion: Your Window of Opportunity is Open

The current market—defined by stabilizing prices and unprecedented government rebates for new builds—presents a rare and powerful opportunity for determined first-time buyers in 2026. The potential savings of up to $130,000 represents a direct government investment in your homeownership journey, making it more attainable than it has been in years.

Start your research, get pre-approved, and connect with a professional who can help you navigate these game-changing programs. Your dream of owning a home in the GTA is closer than you think.

Is the market crashing, or is it correcting? If you are a First-Time Home Buyer sitting on the sidelines, the difference between those two words could be worth tens of thousands of dollars to your future net worth.

The November 2025 numbers are in, and the story they tell is one of opportunity. While the headlines scream about sales dropping, the savvy observer sees something else: leverage.

Here is the breakdown of what happened in the Greater Toronto Area (GTA) real estate market this month, how the "416" compares to the "905," and why the window to get in at a discount might be closing faster than you think.

The Big Picture: Buyers Are Pausing, But Should You?

In November 2025, we saw 5,010 home sales, which is down 15.8% compared to last year. At the same time, the average selling price dipped by 6.4% to $1,039,458.

What does this mean? It means intending homebuyers are sitting on the sidelines, waiting for "more positive economic news". But here is the secret: once that "positive news" arrives and confidence strengthens, everyone will rush back into the market at the same time, driving prices up.

Currently, we have a unique combination of factors working in your favor:

• Lower Borrowing Costs: The Bank of Canada Overnight Rate has dropped to 2.3%.

• More Inventory: Active listings are up 16.8% year-over-year.

• Less Competition: With sales down, you aren't fighting 20 other offers on offer night.

The Breakdown: 416 (Toronto) vs. 905 (Suburbs)

Real estate is hyper-local. A condo in downtown Toronto acts differently than a detached home in the suburbs. Let’s look at the prices by property type to see where the value lies.

Detached Homes: The Crown Jewel

If you are looking for the white picket fence, prices have softened, making the upgrade more attainable.

• 416 (Toronto): Average price is $1,545,941 (Down 9.0%).

• 905 (Suburbs): Average price is $1,275,289 (Down 7.9%).

• Market Insight: Detached homes in the 416 saw sales drop by 16.0%, creating significant negotiating room for buyers.

Semi-Detached: The Competitive Middle Ground

• 416 (Toronto): Average price is $1,187,111 (Down 4.8%).

• 905 (Suburbs): Average price is $853,916 (Down 11.0%).

• Market Insight: Note the massive gap here. You can save over $330,000 by crossing the border into the 905 for a semi-detached home. The 905 Semis took a double-digit price hit (-11.0%), making this a prime target for value hunters.

Townhouses: The First-Time Buyer Favorite

• 416 (Toronto): Average price is $870,793 (Down 3.7%).

• 905 (Suburbs): Average price is $822,549 (Down 7.4%).

• Market Insight: The price gap here is narrow (approx. $48k). If you work downtown, the premium to stay in the 416 might actually be worth the commute savings.

Condo Apartments: The Entry Point

• 416 (Toronto): Average price is $701,259 (Down 1.7%).

• 905 (Suburbs): Average price is $583,547 (Down 8.7%).

• Market Insight: Condo sales took the biggest hit, down over 21% across the board. With 905 condos averaging well under $600k, this is the most accessible entry point we have seen in years.

Critical Advice for November 2025

For First-Time Home Buyers (FTHB)

This is your "Goldilocks" moment. We are seeing encouraging news on jobs and the broader economy. If this momentum continues into 2026, consumer confidence will return, and prices will rise.

You have a chance right now to buy while inventory is high (24,549 active listings) and rates are trending down. Do not wait for the competition to wake up.

Are You Financially Ready to Strike?

Before you start booking showings, you need to know your numbers. Can you handle the deposit? Do you know your credit score?

• Check Your Readiness: Visit our Financial Readiness Guide to calculate your budget and understand the hidden costs of closing.

The Bottom Line

The Toronto Regional Real Estate Board President, Elechia Barry-Sproule, put it best: buyers are on the sidelines waiting for confidence.

Be the buyer who acts on data, not just confidence.

If you are ready to stop renting and start owning, let’s look at the numbers for your specific neighborhood. The window is open, but it won't stay open forever.

By Ali Bolourchi

We are living through one of the most aggressive shifts in Ontario real estate history. The headlines scream "More Homes Built Faster," but the fine print tells a different story—one of shifting financial burdens, eroding rights, and a fundamental change in who controls our neighbourhoods.

If you are following along with our latest presentation, "The Price of Building Faster," this guide will walk you through the slides one by one to uncover the hidden costs of Ontario's legislative blitz.

The Pivot

The Big Picture: Beyond the Headlines

We often get bogged down in small details like Vacant Home Taxes, but the real story is much bigger. Ontario has launched an unprecedented legislative campaign—primarily through Bill 23 and Bill 60—to tackle the housing crisis.

• The Goal: Build 1.5 million homes by 2031.

• The Reality: This isn't just a construction plan. It’s a complex restructuring of the economy that affects homeowners, renters, and municipalities alike.

The Numbers Don't Lie

Defining the Crisis

To understand the solution, we have to look at the problem. The numbers are staggering:

• The Supply Gap: We need 3.5 million additional homes across Canada by 2030 to restore affordability.

• The Renter Squeeze: A full 33% of Ontario renters are paying unaffordable rents (spending more than 30% of their income on housing).

• The "Turnover" Tax: There is now a $512 monthly gap between what a current tenant pays and what a landlord charges for a vacant unit. This creates a massive financial incentive for landlords to turn over units, pushing rents higher every time a tenant moves out.

The New Competitor

Wall Street Moves onto Main Street

This slide highlights a disturbing trend. The crisis isn't just about a lack of supply; it's about who is buying the supply.

• Institutional Investors: Big corporations are increasingly buying up single-family "starter homes" to turn them into rental assets.

• The Stat: In the U.S., investor purchases jumped to 28% of single-family homes recently.

• The Impact: These investors often target lower-priced neighbourhoods, effectively outbidding first-time buyers and families. As Senator Sherrod Brown noted, this leads to higher rents and neglected repairs as homes become mere lines on a balance sheet.

The Official Blueprint

Bill 23 & Bill 60 Explained

Here is the government's two-pronged approach to solving the problem:

1. Bill 23 (More Homes Built Faster Act): The goal here is to incentivize construction by cutting fees (Development Charges) for developers and allowing up to 3 units on a single lot "as-of-right" (meaning you don't need special permission to add a basement or garden suite).

2. Bill 60 (Fighting Delays, Building Faster Act): This bill focuses on the Landlord and Tenant Board (LTB), aiming to speed up hearings and grant the Minister of Housing more power over city planning.

The Taxpayer Bill

Shifting the Burden from Developers to You

This is the slide that should make every homeowner sit up and take notice.

• The Mechanism: Development Charges (DCs) are fees developers pay to cities to fund new infrastructure (roads, sewers, parks). Bill 23 cuts these fees to encourage building.

• The Consequence: The cost of that infrastructure doesn't vanish. It gets transferred to the property taxpayer.

• The Whitby Case Study: The Town of Whitby estimates this will cost them $34 million a year. To make up the difference, they may need to raise property taxes by 30%, or roughly $600 per average home.

• The Toronto Impact: Toronto estimates a loss of $130 million annually, which disproportionately hurts services for low-income residents.

Redefining "Affordable"

A Definition That Misses the Mark

Bill 23 introduces a province-wide definition of "affordable housing" to qualify for those fee exemptions. But does it actually help those in need?

• The Definition: "Affordable" is defined as 80% of the average market rent or purchase price.

• The Reality: In today's market, 80% of a sky-high rent is still expensive. For a low-income household earning $900/month, a "Bill 23 Affordable" unit costing $2,400/month is impossible. This definition helps developers qualify for tax breaks, but it fails to create housing for those in "core housing need".

The Price of Speed

Renter Rights Under Bill 60

We want a faster Landlord and Tenant Board (LTB), but Bill 60 achieves speed by cutting corners on tenant rights.

• Faster Evictions: The notice period for rent arrears (N4) is slashed from 14 days to 7 days. If you lose your job, you now have one week, not two, to figure it out before the legal clock starts ticking.

• Reduced Compensation: Tenants lose the right to one month's rent as compensation for certain "landlord's own use" evictions.

• Silenced Defenses: Tenants can no longer raise issues like maintenance or harassment at an arrears hearing unless they pay a portion of the disputed rent upfront.

The City's Warning

Risks of Homelessness

The City of Toronto has issued a stark warning: these changes will increase eviction rates.

• The Domino Effect: In a tight market, an evicted tenant often has nowhere to go but a shelter. The City warns that this will add pressure to homelessness services and lead to poorer health outcomes for vulnerable populations.

The Power Grab

Sidelining Local Voices

This slide illustrates the massive centralization of power.

• Ministerial Override: The Minister of Housing can now make planning decisions that don't even have to align with the provincial land-use planning statement.

• Silencing the Public: Bill 23 removes the requirement for public meetings for certain subdivision approvals.

• Environmental Risk: The role of Conservation Authorities is drastically reduced, putting environmentally sensitive areas at risk to speed up development.

The Short-Term Rental Problem

The Fight for Long-Term Homes

It's not just about building new homes; it's about keeping the ones we have.

• The Leak: There are 235,000 active short-term rentals (STRs) across Canada, removing 1.4% of the total housing supply from the long-term market.

• The Rules: In places like Toronto, you can only STR your principal residence for a maximum of 180 nights a year. Enforcing these rules is critical to bringing units back to the rental market.

The Conclusion

A Tale of Two Plans

We end with a comparison.

• The Official Plan: 1.5 million new homes.

• The Hidden Costs: A potential 30% property tax hike, increased eviction risks, reduced environmental protections, and the removal of local oversight.

WHENThe race to build is necessary, but we must ask: Who bears the cost? As we move forward, it is clear that without careful navigation, the burden is falling on taxpayers and tenants, while the benefits skew toward large-scale development and investment.

Disclaimer: The content provided in this blog post is for informational purposes only and does not constitute legal, financial, or real estate advice. The statistics and data cited are based on available reports regarding Ontario Bills 23 and 60. Real estate laws and market conditions are subject to change. Always consult with a qualified professional before making any investment or housing decisions.

Introduction: The "Fighting Delays" Act and What it Really Means for You

Renting, owning, or investing in the Greater Toronto Area (GTA) is high-stakes. Against this intense backdrop, the provincial government has passed Bill 60, officially titled the Fighting Delays, Building Faster Act, 2025.

While the government says the law is about speed and efficiency, its sweeping changes to the Landlord and Tenant Board (LTB) procedures represent a fundamental shift in power. It prioritizes a faster legal process, which has immediate, real-world consequences for every single person involved in the rental housing system.

This article breaks down the most significant and surprising changes from Bill 60, analyzing the new reality for Landlords, Tenants, and Investors across Southern Ontario.

🛑 Section 1: Critical Impacts for Tenants and Renters

For tenants, Bill 60 means two things: less time to react and a new financial barrier to defend your home. Housing advocates argue that while the government aims to fix system delays, these changes come at the expense of your right to a fair hearing.

The Clock is Ticking Faster: Less Time to Find Help

The law dramatically accelerates key timelines, putting immense pressure on tenants who fall into rent arrears or who want to challenge a decision.

• Seven-Day Eviction Notice: The notice period a landlord must give a tenant to pay outstanding rent (the N4 notice) has been cut in half—from 14 days down to just 7 days. This change is critical. If you miss a rent payment, you now have only a single week to secure the funds, arrange a payment plan, or find a legal clinic to help you before your landlord can officially file for an eviction hearing.

• 15 Days to Appeal: The window you have to request a review or appeal of a life-altering LTB decision has also been slashed from 30 days to 15 days. This reduction leaves vulnerable tenants with almost no time to secure legal advice or properly prepare an appeal, effectively making it harder to challenge an eviction order.

Access to Justice is Now a Financial Hurdle: The 50% Rule

One of the most dramatic changes creates a new "pay-to-play" barrier at the LTB.

• The New Rule: Tenants facing an eviction hearing for rent arrears must now pay 50% of the amount the landlord claims they owe before they are allowed to raise their own issues, such as serious disrepair, safety concerns, or harassment.

• What This Means: Previously, raising a major repair issue was one of the few ways a tenant could compel a landlord to act. Now, even if you have a legitimate, long-standing issue like mold or no heat, the law demands you satisfy half of the landlord’s financial claim first. This creates a formidable financial hurdle that directly impacts a low-income tenant’s ability to defend themselves.

➡️ Action for Tenants: Document everything. Take photos and send written notices (email, text, or registered mail) for every repair request. If you receive an N4 notice, seek help from a legal aid clinic or community service immediately. Do not wait even a few days.

🏠 Section 2: The New Reality for Landlords and Property Managers

For property owners, Bill 60 is a clear attempt to make the rental business more predictable and less costly by tackling the notorious LTB backlog. The goal is to reduce the financial drain caused by non-paying tenants and systemic delays.

Faster Resolution = Better Business

The procedural changes are designed to quicken the path from missed rent to resolution.

• Accelerated LTB Filings: The N4 notice period of 7 days (down from 14) means you can file your application with the LTB a week sooner. This significantly improves your cash flow predictability by shortening the time your unit is occupied by a non-paying tenant.

• Reduced Hearing Delays: The new rule that blocks tenants from raising new, last-minute issues (like disrepair claims) unless they first pay 50% of the arrears aims to stop tenants from using delay tactics. This means hearings are less likely to be adjourned or derailed by unprepared counter-claims, leading to a much faster, more straightforward eviction process.

Compensation Changes for Own-Use Evictions

The rules for "landlord's own use" evictions (N12 notices) have changed, reducing the cost to take back your property.

• Compensation Can Be Eliminated: Previously, you were always required to pay one month's rent as compensation. Under Bill 60, this compensation is eliminated entirely if you provide the tenant with 120 days' (four months') notice. The compensation is only required if you give a shorter notice period (between 60 and 119 days).

• The Advantage: This removes a major financial hurdle for landlords who need to move a family member in or sell a vacant unit, making your property exit strategy less costly.

➡️ Action for Landlords: Update your practices. Work with your property manager or legal counsel to ensure all your notices (especially the N4 and N12 forms) strictly adhere to the new, shortened timelines. Proper notice is your strongest defense against further delays.

💰 Section 3: Investment and Market Implications for the GTA

For current and prospective real estate investors in the GTA, Bill 60 sends a powerful message that the government is making the rental market a more attractive place to deploy capital.

Lower Risk, Higher Confidence

The core of the new legislation is risk mitigation for property ownership.

• Increased ROI Predictability: The ability to resolve non-payment of rent cases faster, with fewer procedural roadblocks, directly reduces the risk profile of a rental property. When the timeline for dealing with a bad tenancy is cut from six-plus months to potentially three or four, the projected Return on Investment (ROI) becomes more stable and predictable.

• The Supply Signal: Industry groups like the Toronto Regional Real Estate Board (TRREB) have welcomed the changes, seeing them as essential to restoring confidence in the system. The government believes this predictability will encourage people who currently hold empty units to put them on the rental market, potentially easing supply issues.

The Risk of Reputation and Turnover

However, a smart investment strategy must also consider the costs of tenant instability.

• Higher Turnover Costs: Legislation perceived as heavily anti-tenant can lead to increased tenant dissatisfaction and higher turnover rates. Frequent turnover is expensive: you face vacancy periods, cleaning costs, and constant new tenant acquisition expenses.

• Ethical Investing: Long-term, high-quality investors should focus on maintaining stable, positive tenant relationships. Aggressively using every new procedural advantage can quickly damage your reputation and increase your long-term operational costs due to conflict and vacancies.

➡️ Action for Investors: Review your insurance and management. Ensure your landlord insurance policy covers legal expenses that might arise from disputes. For existing properties, consider using the newfound speed of the LTB as a last resort, prioritizing tenant screening and proactive maintenance to ensure long-term stability.

Conclusion: A New Landscape for the Rental Market

Bill 60 has passed, and its effects on the GTA rental system are profound. The underlying message is that the system will move faster, but that speed comes at the cost of procedural time and safety nets, particularly for tenants.

• For Landlords and Investors: The new rules offer greater procedural control and financial predictability.

• For Tenants: The pressure is on to be highly organized, proactive, and swift in seeking assistance and defending your rights.

This is not a time to assume the old rules still apply. Everyone involved in the GTA rental market must adjust their strategy immediately to navigate this new, faster-moving legal landscape.

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Introduction: The Sixplex Dream vs. The Financing Nightmare

The buzz around Toronto's new sixplex zoning rules is hard to miss. For real estate investors and small-scale developers, the city's move to permit six-unit buildings represents a significant opportunity to build much-needed "missing middle" housing. But while most of the conversation has centered on zoning changes, a far bigger obstacle looms for anyone looking to break ground: financing. Securing a mortgage for a multi-unit construction project is a complex and capital-intensive challenge that stops many promising projects before they even start.

However, the real story isn't just about zoning. A little-known federal program has fundamentally re-engineered the economics of these projects, making the six-unit multiplex the single most potent investment vehicle for small-scale development in Toronto today.

1. Why Six is the Magic Number: Unlocking a New Class of Financing

Building a sixplex, as opposed to a triplex or fourplex, fundamentally changes the financing landscape. The decision to add that fifth and sixth unit isn't just an incremental increase in density; it's a strategic move that unlocks an entirely different and more powerful class of financial tools.

Properties with five or more units are considered commercial residential projects by lenders. This critical distinction makes them eligible for the Canada Mortgage and Housing Corporation (CMHC) MLI Select insurance program. A fourplex, by definition, does not qualify for this program. This single detail positions the sixplex as a superior investment choice, granting access to financing terms that are simply unavailable for smaller multiplexes. This transition moves an investor from the world of conventional residential mortgages into the realm of sophisticated commercial financing, opening up a toolkit designed for professional-grade development.

2. Supercharged Mortgages: The Unbelievable Terms of CMHC's MLI Select

The CMHC MLI Select program offers highly attractive loan terms that provide a massive advantage over conventional bank loans. Designed to encourage the development of affordable, accessible, and energy-efficient rental housing, the program rewards builders who commit to these social goals with unparalleled financing conditions.

The strategic gulf between these financing options is stark:

These terms are earned by designing a project that meets specific criteria in areas like affordability, energy efficiency, or accessibility. The higher a project scores on these metrics, the better the financing terms become, dramatically reducing the amount of upfront capital an investor needs to contribute.

3. The Bottom Line: How MLI Select Turbocharges Your Cash Flow

The exceptional financing terms offered by MLI Select have a direct and powerful impact on a project's bottom line. By extending the amortization period to as long as 50 years, the program makes monthly mortgage payments significantly lower, which in turn boosts cash flow and overall profitability.

Let's use a hypothetical example grounded in the Toronto market:

• A sixplex with 6 units averaging 2,200 per month in rent generates 158,400 in gross annual income.

• After accounting for property taxes, insurance, and maintenance, the Net Operating Income (NOI) is estimated to be around $120,000 per year.

Lenders use a metric called the Debt Coverage Ratio (DCR)—the ratio of NOI to annual mortgage payments—to assess risk. A healthy DCR is typically above 1.2, meaning the property's income is at least 20% higher than its debt obligations. With a conventional 25-year mortgage, the high monthly payments could consume most of the NOI, making it difficult to achieve a strong DCR.

However, a 50-year amortization made possible by MLI Select makes the resulting mortgage payments exceptionally small relative to the income generated. This dramatically improves cash flow and makes achieving a healthy DCR much easier, turning a marginal project into a financially robust one. The impact on investor returns is profound.

"With typical 25 % equity and mortgage pay-down factored in, that 6 % cap translates into roughly 12-14 % returns on equity, before accounting for any long-term appreciation. Extended 40- or 50-year amortizations further boost cash-on-cash yields by lowering annual debt service."

4. The Fine Print: The Mandatory Bonding Requirement You Can't Ignore

While the benefits of MLI Select are clear, accessing them comes with a critical, non-negotiable requirement that often surprises first-time multi-unit builders: contract surety bonding. This is a crucial hurdle that separates serious, well-prepared developers from amateurs.

CMHC requires all projects financed under the MLI Select program to carry two specific types of bonds:

• Performance Bond: Covering 50% of the total construction contract value.

• Labour & Material Payment Bond: Covering 50% of the total construction contract value.

In simple terms, a Performance Bond is a financial guarantee that the project will be completed as contracted, protecting the lender from builder default. A Labour & Material Payment Bond ensures that all subcontractors and suppliers are paid, preventing construction liens from derailing the project. For the lender, this de-risks the project; for the investor, it enforces a level of professional discipline essential for success. This is a mandatory step that must be completed before CMHC will authorize the release of any construction funds, making it an essential part of early-stage financial planning.

5. The Financial Cherry on Top: How Toronto Sweetened the Sixplex Deal

Beyond the federal financing advantages, Toronto City Council has provided another powerful financial incentive that makes the sixplex uniquely attractive.

Previously, developers faced a significant financial penalty: while the first four units in a multiplex were exempt from Development Charges, adding a fifth unit triggered these fees for all units in the project. This created a powerful disincentive to build beyond a fourplex.

However, in a game-changing move, Toronto City Council voted to waive these charges for all units in a sixplex, completely removing the previous financial barrier and making the jump from four to six units dramatically more profitable. This waiver is not merely an added benefit; it's the critical key that makes the powerful CMHC MLI Select financing truly viable. By eliminating a six-figure upfront cost, it allows developers to preserve capital and more easily meet the equity requirements for the high-leverage CMHC loan.

Conclusion: A New Era for the Small-Scale Developer

The convergence of progressive municipal policy and powerful federal financing has created a rare and potent opportunity in Toronto's real estate market. The combination of new as-of-right zoning, the complete waiver of development charges, and—most importantly—the transformative financing terms of CMHC's MLI Select program has aligned to make the sixplex a uniquely strategic asset class. This policy alignment forges a new investment paradigm, positioning the sixplex to generate superior returns while simultaneously addressing Toronto's housing gap.

With these powerful financial tools now leveling the playing field, could the humble sixplex become the defining investment of Toronto's next chapter of growth?

Executive Summary

Toronto’s June 2025 sixplex reforms quietly rewire the economics of small-scale multifamily development. In nine initial wards, a “detached houseplex” with up to six units is now permitted as-of-right, paired with sweeping fee relief and access to high-leverage CMHC financing. The catch is hidden: commercial underwriting and mandatory surety bonding filter who can execute.

For investors, this is a rare window to assemble a pipeline of “missing middle” rentals in A-locations with predictable entitlements, material cost savings, and strong tenant demand. Because we have access to financing and bonded contractors, we can help you step directly into this opportunity with an integrated, end-to-end delivery model: Design. Build. Rent. Manage. Repeat.

Toronto's new six-plex allowances (as of mid-2025) are limited to nine specific wards: 4, 9, 10, 11, 12, 13, 14, 19, and 23, mostly central/East York areas plus Scarborough North, allowing for as-of-right builds without full rezoning. Other wards require special requests for inclusion. 

The Nine Approved Six-Plex Wards (as of mid-2025):

• Ward 4: Parkdale–High Park

• Ward 9: Davenport

• Ward 10: Spadina–Fort York

• Ward 11: University–Rosedale (University-Yorkdale in one source, likely a typo)

• Ward 12: Toronto–St. Paul's

• Ward 13: Toronto Centre

• Ward 14: Toronto–Danforth

• Ward 19: Beaches–East York

• Ward 23: Scarborough North (part of an earlier pilot) 

Key Details of the New Six-Plex Policy:

• As-of-Right: Six units permitted without needing rezoning or complex minor variances in these zones.

• Goal: Increase "missing middle" housing (family-sized units, lower rent than condos).

• Timing: Approved by City Council in June 2025, implemented through late 2025.

• Expansion: Other wards can opt-in via a letter to the City Planner. 

1) What the New Regulation Actually Does

The by-law passed June 25, 2025 creates a new, as-of-right building type, the detached houseplex, on a single lot with up to six dwelling units, where at least one unit is above another.

Key mechanics:

• Geography, Phase 1: Applies in nine wards, all Toronto & East York Community Council wards (Parkdale-High Park, Davenport, Spadina-Fort York, University-Rosedale, Toronto-St. Paul’s, Toronto Centre, Toronto-Danforth, Beaches-East York) plus Ward 23 (Scarborough North). Other wards may opt in later.

• As-of-right status: No site-specific rezoning if you meet the standards. This reduces entitlement risk, timelines, and soft costs.

• Detached-only limitation: You can build new or convert a detached house. Semi-detached and townhouse conversions to 5–6 units are expressly prohibited.

• Height and form: Up to four storeys and a 10.5 m height limit, which is a 0.5 m increase over prior multiplex rules, specifically to enable livable lower-level units.

• Basement livability requirements for the extra height: The lowest level must contain a dwelling unit with a minimum 2.4 m ceiling height and ceiling joists 1.0 to 1.5 m above established grade to allow larger windows and daylight.

• Parking minimums eliminated: Multiplexes have no minimum on-site parking requirements.

• Definitions updated: In residential zones, “apartment building” now starts at seven units. Six units max keeps you in multiplex territory.

• Standards still apply: Setbacks, lot coverage, soft landscaping, and tree protection remain binding to preserve neighbourhood character.

2) Why the City Did It, and Why It Is Politically Fraught

• Policy drivers: This is the next step in the City’s Expanding Housing Options in Neighbourhoods (EHON) program and aligns with the Provincial Planning Statement, PPS 2024, on providing a range and mix of housing.

• Federal lever: The sixplex reform is a milestone under Toronto’s 471.1 million dollar Housing Accelerator Fund agreement with CMHC. Because Council limited approvals to nine wards, not city-wide, the federal government has threatened to withhold about 30 million dollars per year until the City meets the original ambition. Politics will influence how fast this expands.

• Pilot context: Ward 23’s pilot concluded without a built sixplex, which means little empirical data, heightening scrutiny on implementation quality in this early phase.

3) The Financial Game-Changer: Fees Wiped Away

Historically, building a fifth unit triggered Development Charges on all units, which instantly killed the economics for most small sites. That cliff is gone.

• Development Charges waiver: All units in a sixplex are exempt from DCs.

• Parkland dedication fees waived: Additional upfront savings on top of DCs.

• Impact: With per-unit DCs for a two-bedroom reaching roughly 80,690 dollars, the total exemption can exceed 480,000 dollars on a sixplex. This single policy shift flips many sites from marginal to viable.

4) Financing: The New Bottleneck, and How to Navigate It

Because 5 plus unit properties are financed as commercial residential, CMHC MLI Select becomes the fulcrum for most sixplex capital stacks.

Why MLI Select matters:

• Up to 95 percent loan-to-cost and amortizations up to 50 years

• Preferential terms tied to affordability, energy efficiency, and accessibility scores

The hidden hurdle:

• Mandatory surety bonding is non-negotiable with MLI Select. You must provide a Performance Bond and a Labour and Material Payment Bond, typically 50 percent of the construction contract each. Surety is underwritten like credit, not insurance, and requires strong financials, organizational controls, and demonstrable construction capability.

How we help:

• We work with bonded general contractors and surety partners.

• We sequence pre-qualification and bond-readiness, including financials, work-in-progress schedules, resumes, project budgets, cash flow, and procurement plans, before CMHC underwriting.

• We structure the capital stack for speed: land loan or cash, construction debt, and a take-out with MLI Select at stabilization.

5) Where Investors Win: Three Scalable Strategies

1. Develop-to-Core, Hold and Refinance

• Acquire, entitle by-right, build, lease, refinance with MLI Select, and hold as a stabilized, inflation-hedged income asset.

• Benefit from fee waivers, long amortizations, and resilient urban rental demand.

2. Merchant Build, Build-to-Sell

• Execute to occupancy and sell to yield-seeking private investors or family offices.

• Premiums are available for brand-new, code-advanced multiplexes with professional management and low operating expenses.

3. Joint Venture with Homeowners, Equity-Light Growth

• Co-develop with landowners in permitted wards, swapping development expertise and capital access for profit participation.

• Reduce land carry and expand your pipeline while aligning incentives.

6) Your Investor Playbook: Design. Build. Rent. Manage. Repeat.

1. Feasibility and Site Selection

• Target the nine wards first, as-of-right. Confirm zoning layer and houseplex permissions on the exact lot.

• Screen for buildability: lot width and depth, grade for daylight to the lower unit, tree constraints, utilities, adjacent sensitive uses, and heritage overlays.

• Prefer transit-proximate, school-served locations with neighbourhood retail, since these submarkets rent up fast.

2. Concept Design and Compliance

• Optimize within the 10.5 m envelope and four-storey massing.

• Ensure the lowest-level unit meets the 2.4 m ceiling and joist-above-grade criteria.

• Right-size the unit mix: combine family-sized 2 to 3 bedroom units with efficient 1 bedroom units or studios on narrow lots.

• Avoid de facto rooming house designs, for example 8 to 9 bedrooms in one unit with minimal common space. The City is watching for misuse.

3. Capital Stack Engineering

• Bridge capital for land and soft costs.

• Construction loan with a bonded general contractor and a fixed-price or GMP contract where feasible.

• Take-out via CMHC MLI Select at stabilization. Pre-structure affordability, efficiency, and accessibility features to maximize MLI points.

4. Bond-Readiness and Procurement

• Prepare developer financials, references, and organizational controls for surety underwriting.

• Lock in a bonded general contractor with demonstrated multiplex experience.

• Sequence trades with Labour and Material Payment Bond coverage to derisk liens and cash flow.

5. Permitting and Delivery

• Stay as-of-right to avoid Committee of Adjustment delays unless a variance materially enhances feasibility.

• Expect 12 to 18 months for construction. Front-load procurement of long-lead items.

• Maintain quality control on acoustics, building envelope, and durable finishes to minimize future operating costs.

6. Lease-Up and Asset Management

• Pre-market during finishing and target families, essential workers, and multi-generational demand.

• Use professional property management to stabilize quickly, reduce repair cycles, and document net operating income performance.

• Refinance on the income approach. Long amortization smooths DSCR and boosts cash-on-cash returns.

7) Unit Economics and Sensitivities, Conceptual

Think in terms of levers, not guesses.

• Revenue levers: Bedroom count, walkability and transit, school catchments, in-unit laundry, private outdoor space, and thermal and acoustic comfort.

• Cost levers: DC and parkland exemptions, structured procurement, bonded GC pricing, and energy specifications that reduce utilities and improve MLI scoring.

• Financing levers: Loan-to-cost, amortization length, rate hedging, interest carry during construction, and refinance timing.

• Cap rate context: New-build multiplexes have stabilized near a 6 percent cap rate in several cases. Combined with long-amortization insured debt, the result can be attractive cash yields and strong return on equity at stabilization.

• Sensitivity tests to run: Plus or minus 10 percent hard costs, plus or minus 50 basis points on cap rate, plus or minus 5 percent rent, a 3 to 6 month schedule slip, and a 100 to 150 basis point interest-rate shock on construction debt.

8) Site Fit: What Good Bones Look Like

• Lot geometry: 8.5 to 10 plus metres width and 30 plus metres depth make planning smoother. Corner lots offer light, entries, and services advantages.

• Topography: A gentle front-to-back slope improves lower-level daylighting while meeting joist-above-grade rules.

• Trees and setbacks: Early arborist review to design around protected trees and avoid delays.

• Servicing: Capacity for additional units. Avoid costly relocations of mains or transformers where possible.

• Neighbourhood fabric: Mixed house typologies, lane access, and existing multiplex presence reduce friction and ease approvals.

9) Common Pitfalls, and How We Avoid Them

• Underestimating surety requirements: We pre-qualify with surety and use bonded general contractors to keep CMHC financing on track.

• Designs that read like apartments: We maintain a house-scale massing with articulated facades and contextual materials.

• Over-optimistic schedules: We lock long-lead items early and hold contingency for inspections and utility tie-ins.

• Ignoring soft landscaping and tree protection: We integrate landscape early to satisfy site plan standards and avoid redesigns.

• Parking assumptions: With no minimums, do not waste floor area on unnecessary stalls unless market-specific.

10) Policy and Process Watch-Items

• Ontario Land Tribunal appeal windows: A standard 20-day period post-passage applied. Track any area-specific appeals before closing on sites.

• Ward opt-ins: Expansion beyond the nine wards will likely be lumpy and political. Early proof-of-concept in permitted areas helps momentum.

• City monitoring: Expect attention to infrastructure capacity and use and occupancy. Build to the spirit and letter of the rules.

11) Scaling Strategy: From One to Many

• Templates and prototypes: CMHC’s National Housing Design Catalogue includes a sixplex concept, with an accessible-ready unit, that can jumpstart design and boost MLI scoring.

• Standardized specifications: Repeatable floor plates, mechanical systems, and finish packages compress design time and reduce change orders.

• Portfolio advantage: A stabilized sixplex portfolio in prime wards compounds value, with lower vacancy risk, better operating margins, and institutional buyer appeal for exits.

12) Why This Window Will Not Stay Open Forever

• Land repricing: As-of-right sixplex potential will be capitalized into land values over time. Early movers capture the delta.

• Policy drift risk: Federal-municipal tension around city-wide rollout could affect timing. Delivering high-quality early projects reduces the narrative risk.

• Construction capacity: As more players enter, bonded GC bandwidth tightens. Securing teams now is a competitive moat.

13) How We Partner With You

Because we already have access to financing channels and bonded contractors, we can compress your learning curve and timelines.

Our integrated mandate:

• Feasibility and acquisitions: Rapid site screens and offer strategy anchored to post-DC-waiver economics.

• Design and approvals: As-of-right designs that meet the 10.5 m envelope and livable lower-level criteria.

• Capital stack and bonding: Pre-qualify with surety, structure construction debt, and secure MLI Select take-outs.

• Construction delivery: Bonded GC execution with cost control, schedule discipline, and quality assurance.

• Lease-up and management: Family-friendly unit mixes, professional leasing, and data-backed NOI stabilization.

• Repeat: Build a pipeline that compounds returns and bargaining power with lenders and trades.

Conclusion: A Small Building With a Big Job, and Big Potential

Toronto’s sixplex reform is more than a zoning tweak. It is a coordinated policy shift with powerful financial tailwinds, including DC and parkland fee waivers, as-of-right entitlements in top-tier neighbourhoods, and transformational CMHC financing. The gating factor is execution: commercial underwriting and mandatory surety bonding reward experienced, well-structured teams.

If you want to convert these rules into durable equity and cash flow, the strategy is clear. Target the nine wards. Keep designs house-scaled and code-forward. Secure bonding and MLI Select early. Deliver family-ready rentals where demand is deepest.

We are ready to help you move from concept to keys, to design, finance, build, lease, and manage, then repeat at scale.

If you would like us to send you a list of potential candidates or to run a quick feasibility on an address or assemble a short-list of target lots, we can start this week.

Glossary

Policy and Zoning

• As-of-right: A project that meets preset zoning standards and can be approved without a site-specific rezoning. Reduces entitlement risk, time, and soft costs.

• Detached houseplex: A detached residential building with up to six dwelling units on a single lot, where at least one unit is above another. Sixplexes are one type of houseplex.

• Sixplex: A low-rise building containing six self-contained dwellings on one lot. Treated as a multiplex, not an apartment building, under the new rules.

• Multiplex vs. apartment building: In residential zones, multiplex covers up to six units. An apartment building begins at seven or more units.

• Geographic scope, initial rollout: As-of-right sixplex permissions currently apply in nine wards, all Toronto & East York Community Council wards and Ward 23 Scarborough North. Other wards may opt in later.

• Committee of Adjustment, CoA: The municipal body that considers minor variances from zoning standards. Staying as-of-right avoids this process.

• Ontario Land Tribunal, OLT: Provincial tribunal that hears planning appeals. New by-laws typically face a 20-day appeal window after passage.

• Expanding Housing Options in Neighbourhoods, EHON: City program enabling missing middle housing, including laneway suites, garden suites, fourplexes, and now sixplexes.

• Provincial Planning Statement, PPS 2024: Provincial policy that directs municipalities to provide a range and mix of housing options and densities.

• Housing Accelerator Fund, HAF: A federal CMHC program providing 471.1 million dollars to Toronto, contingent on milestones that include enabling sixplexes.

• Setbacks: Minimum required distances between a building and property lines.

• Lot coverage: The portion of a lot covered by buildings, expressed as a percentage.

• Soft landscaping: Vegetated areas such as lawns, gardens, and tree beds that are required to maintain green space and stormwater performance.

• Established grade: The average grade around a building used for measuring height and basement conditions.

• Basement livability rules: For the 10.5 metre height allowance, the lowest level must include a dwelling unit with minimum 2.4 metre ceiling height and ceiling joists 1.0 to 1.5 metres above established grade, allowing larger windows and daylight.

• Parking minimums eliminated: The by-law removes minimum on-site parking requirements for multiplexes, improving design flexibility on small lots.

• Tree protection: City rules that safeguard existing trees and root zones during development, often requiring arborist reports and protective measures.

Fees and Municipal Finance

• Development Charges, DCs: City fees on new residential units used to fund infrastructure. All units in a sixplex are now exempt.

• Parkland dedication fees: Contributions required for parks and open spaces. Sixplex units are exempt under the new policy.

Financing and Underwriting

• CMHC: Canada Mortgage and Housing Corporation, the federal housing agency that provides mortgage loan insurance and programs such as MLI Select.

• MLI, Mortgage Loan Insurance: Insurance that protects lenders on multi-unit residential mortgages. For 5 plus unit projects, MLI Select is the flagship product.

• MLI Select: CMHC’s insured financing program for 5 plus unit purpose-built rentals. Offers up to 95 percent loan-to-cost and up to 50-year amortization, with preferential terms tied to affordability, energy efficiency, and accessibility scoring.

• Loan-to-cost, LTC: The loan amount as a percentage of total project cost. Higher LTC reduces required equity.

• Amortization: Length of time used to repay the loan for payment calculations. Longer amortization reduces monthly debt service.

• Take-out financing: Long-term permanent financing that replaces construction debt when a project is stabilized, often via CMHC MLI Select.

• Commercial residential financing: Lending category for 5 plus unit properties with underwriting focused on building income, debt service metrics, and sponsor strength.

• Debt service coverage ratio, DSCR: Net operating income divided by annual debt service. A key covenant for loan approval.

• Pro forma: A forward-looking financial model that projects construction costs, rents, operating expenses, and returns.

• Income approach to valuation: Method that values a property based on stabilized net operating income and market capitalization rates.

Surety and Contracting

• Surety bonding: Third-party guarantees that protect owners and lenders during construction. Required for CMHC-insured projects.

• Performance Bond: Guarantees completion according to the construction contract, typically 50 percent of contract value.

• Labour and Material Payment Bond, L&M Bond: Guarantees payment to trades and suppliers to prevent liens, typically 50 percent of contract value.

• Bonded general contractor: A GC prequalified by a surety to provide required bonds. Often essential to access CMHC financing.

• Bond readiness: The documentation and financial strength a developer or GC must demonstrate to obtain surety bonds, including financial statements, work-in-progress schedules, resumes, and contracts.

• Fixed-price contract: A construction contract with a set price for defined work, transferring some cost risk to the builder.

• GMP, Guaranteed Maximum Price: A contract type that caps the owner’s cost exposure while allowing shared savings and adjustments for defined contingencies.

• Construction lien: A legal claim by unpaid contractors or suppliers against the property. L&M Bonds help protect against liens.

Design and Operations

• House-scale massing: Architectural design that makes a sixplex read like a large house, not a mini-tower, through height, stepbacks, and contextual materials.

• Purpose-built rental, PBR: Housing developed specifically as long-term rentals, not condominium conversions.

• Accessibility features: Design elements that improve access, such as step-free entries and adaptable bathrooms. Can improve MLI Select scoring.

• Energy efficiency features: Upgrades that reduce energy use and operating costs, supporting MLI Select points and tenant appeal.

• Affordability criteria: Rent or income targeting that qualifies the project for higher MLI Select scores and better terms.

• Lease-up: The period when new units are marketed and rented to reach stabilized occupancy and income.

• Stabilization: The point at which a property reaches steady occupancy and NOI suitable for permanent financing.

• Net operating income, NOI: Income after operating expenses but before debt service and taxes.

• Cap rate: The ratio of NOI to property value, used to compare returns and set valuations.

Investment Strategies

• Develop-to-core, hold and refinance: Build, stabilize, refinance with long-term insured debt, and hold as an income asset.

• Merchant build, build-to-sell: Build to completion and sell to an investor seeking yield from a stabilized asset.

• Buy, build, refinance: Acquire land, construct with bridge or construction financing, then refinance based on stabilized value, often recovering much of the initial equity.

• Joint venture, JV: Partnership structure that combines a landowner or capital provider with a development partner, sharing risk and returns.

• Build-to-rent, BTR: Development model focused on creating and holding rental assets rather than selling units.

• Early mover advantage: Capturing value before land prices fully reflect sixplex entitlements and before construction capacity tightens.

The Strategic Seller's Guide: How to Avoid Price Chasing in a Buyer's Market

In the Greater Toronto Area (GTA) real estate landscape, the rules of engagement have fundamentally changed. The frenzied, multiple-offer environment is gone. Today, we are firmly in a Buyer's Market—and this demands a complete shift in selling strategy.

According to the latest TRREB Market Watch for October 2025, active listings are up 17.2% year-over-year, while the average selling price has decreased by 7.2% to $1,054,372.

For sellers, this data points to one critical danger: price chasing. This occurs when a property is listed too high, sits on the market for weeks, requires multiple public price reductions, and ultimately sells for less than it would have if it was priced correctly on Day One.

The most successful sellers are not the lucky ones—they are the strategic ones. Here is the A.B.R.E. Team’s guide to strategic pricing and preparation, designed to ensure you sell your home swiftly, for the highest possible return, without chasing the market down.

The Data Behind the Danger: Why Time is Your Enemy

In a Buyer's Market, the clock is working against you. Buyers have more choice than they have in years, and they are using that choice to target stale listings for deep negotiations.

Strategy 1: Price to Today's Comparables, Not Yesterday's Peak

The single biggest determinant of a quick and successful sale is the initial listing price. A small pricing error now can lead to a massive cost later.

1. Be Under the Last Comp: In a declining or stabilizing market, your asking price should be slightly below the last comparable property that sold in your neighbourhood. This anchors your home as the most compelling value proposition in the current inventory.

2. Maximize the First 14 Days: A home generates the highest volume of traffic and interest in its first two weeks. If you miss this window by being overpriced, you can never recapture the momentum, and subsequent cuts signal desperation.

3. Price for the Search Filter: Work with the A.B.R.E. Team to price strategically just under a common buyer search threshold (e.g., listing at $1,199,000 instead of $1,200,000) to maximize the number of eyes on your property.

Strategy 2: Staging and Condition are Mandatory Expenses

In a high-inventory market, buyers are looking for reasons to eliminate properties. Your home must be turnkey to justify its price.

• Create Value, Don't Expect It: Professional staging is not an option—it is mandatory. It transforms your personal residence into a neutral, aspirational product that allows buyers to envision their own future, leading to quicker decisions and higher offers.

• Fix Everything First: Buyers will always overestimate the cost of repairs and factor those costs into their offer—often reducing the price by double the actual repair cost. Invest in deep cleaning, decluttering, and pre-listing touch-ups to eliminate any reason for a low offer.

• Pre-Inspection Confidence: Consider a pre-listing home inspection. Offering buyers a clean, recent report upfront removes a major negotiation point and demonstrates transparency, giving them the confidence to waive conditions or submit a strong, firm offer.

Strategy 3: Master the Decisive Price Adjustment

If, after the crucial first 14 days, you have heavy showings but no offers, your price is the problem. If you have few showings, your marketing or condition is the problem. Do not make small, incremental cuts.

• The Problem with Small Cuts: Reducing the price by 1% is futile; it merely annoys the buyers who have already seen the property and signals to new buyers that you are not serious. This is the definition of price chasing.

• The Decisive Strike: If an adjustment is necessary, make it a meaningful cut (typically 3-5%) that lands your home firmly in a new, more competitive price bracket. This immediately re-energizes the listing, captures a fresh pool of buyers, and ends the price chasing cycle before it starts.

Ready to Strategize? Your Equity Depends on It.

Selling in this market isn't about luck; it's about strategy, preparation, and using accurate, hyper-local data. The difference between an overly optimistic listing price and a strategic one can cost you tens of thousands of dollars and months of wasted time.

The A.B.R.E. Team has the current market data and a proven pricing system to ensure your home sells on time and for the highest possible return.

Don't chase the market down. Book your private 2026 Seller Strategy Session with the A.B.R.E. Team today.

Let's develop a pricing and marketing plan that is designed to win in a buyer's market.

The Bank of Canada’s October rate cut to 2.3% was immediately hailed by many as the catalyst for the next GTA housing boom. Yet, the market’s reaction in October was subdued: sales volume remained 9.5% below last year’s levels, and the overall average price dropped 7.2% year-over-year to $1,054,372.

The truth is, for the strategic professional, the market has failed to surge precisely because the fundamental pressures of economic anxiety are neutralizing lower borrowing costs. We see what others miss. This confusion among average buyers is creating a critical affordability and negotiation window for high-earning clients with stable employment.

The Economic Headwind: Uncertainty Trumps Low Rates

For high-achieving professionals, market narratives based on single data points—like a central bank rate cut—are dangerous. Our clients operate on certainty and long-term strategy. The year-long trend shows that the market has been consistently plagued by a structural weakness in the Canadian economy and a lack of consumer confidence.

• Economic Contraction: Real GDP contracted by -1.6% in the second quarter of 2025.

• Job Anxiety: The Toronto unemployment rate remains high at 8.9% in September 2025. As one executive noted, buyers need to feel their employment situation is solid before committing to long-term mortgage payments.

This persistent anxiety is the true anchor on sales volume, overriding the mathematical benefits of lower borrowing costs.

The Affordability Catalyst: Data Creates a Strategic Window

The path to improved affordability has been driven not by mass recovery, but by aggressive price softening and incremental rate relief.

The data reveals two compelling facts for the opportune buyer:

1. Price Correction is Real: The year-over-year average price decline peaked at -7.2% in October. This is a genuine discount that has materialized across market segments, largely driven by high active listings (up 17.2% YoY in October) creating substantial buyer choice.

2. Carrying Costs are Easing: The BoC rate fell from 3.0% in February to 2.3% in October. The monthly mortgage payment for an average-priced GTA home is now trending lower, benefiting from both falling prices and lower borrowing costs.

📈 Strategic Market Shift: January to October 2025

The months leading to October were defined by a tense push-and-pull between affordability and confidence.

(Chart Suggestion: Insert graph illustrating the declining YoY Avg Price % Chg against the step-down pattern of the BoC Overnight Rate)

🎯 Strategic Implications for High Achievers

This is a market built for high achievers—those whose job security in finance, tech, or law allows them to act when the average buyer is paralyzed by the headlines.

The Current Opportunity:

• Luxury & Freehold Discount: The steepest year-over-year price discounts are available in the Detached segment (down -7.3% GTA-wide), particularly in the 416 region. This is the optimal time to secure a luxury freehold property while competition is minimal.

• Condo Leverage: The 905 Condo Apartment market experienced the sharpest year-over-year price decline at -10.4%, signaling maximum leverage for investors or first-time buyers seeking lower price points in Mississauga, Vaughan, or Markham.

• 416 Resilience: In contrast, 416 Semi-Detached homes saw 0.0% sales change YoY, reflecting enduring urban scarcity and confirming the long-term stability of well-located core assets.

The ABRE Team’s Forecast (November & December 2025):

Do not wait for a perfect market. Strategic timing means acting during the transition.

Ready to turn market intelligence into strategic advantage?

The data confirms that the moment for thoughtful, aggressive action is now. The market is not waiting for certainty; it is rewarding strategy.

Schedule your strategic consultation with the Ali Bolourchi Real Estate Team today. We specialize in strategic real estate guidance for high achievers.

📞 Call 416-886-2000 or visit GTALuxuryHomes.CA

(Marketing Content Disclaimer: This analysis is for informational purposes and based on current market data. Real estate markets can change rapidly. Past performance doesn't guarantee future results. Consult with qualified professionals before making financial decisions.)

The Toronto real estate market is a paradox—a place where the headlines are completely missing the real story. Forget the simple narratives about interest rates; the market is being shaped by deep, contradictory policy moves and fundamental economic anxiety.

We're cutting through the noise. Here are five of the most impactful and counter-intuitive truths currently driving Toronto’s housing landscape.

1. Ottawa Just Hit the Brakes and the Gas—Simultaneously

The 2025 Federal Budget unleashed a high-stakes, dual policy experiment: supercharging supply while deliberately throttling demand. It’s an unprecedented market gambit that defies simple forecasting.

• The Accelerator (Supply): The government is launching a massive new construction plan, aiming to double the pace of residential construction to 500,000 homes per year. This includes major investment in modern, faster building methods.

• The Brake Pedal (Demand): At the same time, the government is drastically cutting immigration targets, reducing the number of temporary and permanent residents entering the country.

This push-pull strategy is estimated to slash Canada's housing gap by 45% by 2030. You are witnessing one of the most powerful structural shifts in the market in decades.

2. That "Game-Changing" Rate Cut Isn't the Magic Pill You Think It Is

When the Bank of Canada cut its key interest rate to 2.25% in October 2025, the headlines screamed "historic opportunity." While the math is exciting—a single cut can add hundreds of thousands in theoretical buying power—the reality is much more sobering.

• The BoC’s Own Warning: The central bank itself warned that monetary policy cannot fix structural issues like the ongoing U.S. trade war and a fragile domestic labor market.

• Headwinds Remain: The Canadian economy contracted in the second quarter of 2025, and the Bank pointed directly to a "weak labour market is weighing on household spending."

• The Professional Take: Lower rates offer relief, but they do not instantly restore confidence or flip market behavior. Rates are just one piece of a complex economic puzzle.

3. The True Anchor on the Market Isn't Your Mortgage—It's Your Job

High borrowing costs get the blame, but the real silent killer of market confidence is job anxiety. Low mortgage rates mean nothing if buyers fear their employment prospects.

Consumer confidence is under a pincer attack:

• Public Sector Austerity: Federal budget plans include cutting tens of thousands of public service positions.

• Rising Unemployment: National unemployment is projected to peak higher in late 2025.

• Trade War Instability: Ongoing U.S. tariffs continue to cause job losses in key Canadian sectors.

As TRREB’s Chief Information Officer, Jason Mercer, put it: "Home buyers need to feel their employment situation is solid before committing to monthly mortgage payments over the long term." Without job certainty, buyers stay on the sidelines.

4. Waiting for a Price 'Stall'? Get Ready for a 19-Year Wait.

Many prospective buyers dream of a "soft landing"—a freeze in home prices that lets wages catch up. Our analysis reveals this hope is utterly disconnected from reality.

• The Staggering Math: Even in an unrealistic best-case scenario where prices stop rising completely and wages increase steadily, it would still take a median household in Toronto 19 years to afford the mortgage payments on a typical home.

• The Human Cost: This means a 25-year-old first-time buyer would be 44 before their income could support a purchase.

This isn't a problem a minor correction can fix. This is a multi-decade structural imbalance that demands a complete re-evaluation of affordability strategies.

5. The Condo Market's Armor Is Finally Showing Cracks

For years, condos were the most reliable entry point and a seemingly foolproof investment. That assumption is now crumbling under unique pressures:

• Subdued Investor Demand: High borrowing costs are keeping new investors away from the market.

• Surging Supply: Active listings are climbing at a much faster rate than sales. This flood of available units means buyers now have "substantial choice and negotiating power on price."

• Weakness at the Low End: Properties at the lower end or in less-optimal locations are experiencing the clearest signs of weak demand and inventory excess.

This segment, long considered the market's most resilient, is now squarely in a buyer’s favour. Buyers and current investors need to watch this space closely as the dynamics are clearly changing.

Conclusion: A Market at a Crossroads

Toronto’s real estate market is in a phase of controlled chaos. Never before has it been subject to such a deliberate, high-stakes policy experiment while navigating major economic headwinds.

Success requires looking past the headlines and understanding the complex, contradictory forces at play.

Ready to move past general news and craft a strategic plan based on the precise data for your neighbourhood and home type? Contact the ABRE Team today for a personalized, data-driven consultation.