Is It the Right Time to Buy in East Toronto? What First-Time Buyers Need to Know
When You’re Renting and “Waiting for the Right Time”
Real talk: If you’re paying rent and telling yourself you’ll buy once “the market drops,” you might be missing a window. Your home-ownership journey requires the stars to align—qualify for a mortgage, find the right house, be in the right stage of life. But if you’re waiting for “the market to drop further,” it’s time to read on.
A Real Life Landlord Story to Start…
Picture this: In my 20s I interviewed a tenant—solid credit, clean financials. Naturally I asked, “Why don’t you buy instead of rent?” His answer: “I’m waiting for the market to cool.”
It was 2008—yes, the U.S. market collapsed and Toronto dipped by about 8-10% but that dip was brief. The moment he answered was the cool market. Five years later, I ran into him at a bar, wait for it…he still hadn’t bought. Why? Because the market rebounded quickly, hit new heights, and he was priced out while he was waiting for it to cool.
Now, I’m not here pretending I can predict the market rebound. I’m not an economist. And yes, it’s highly likely the market doesn’t rebound in the same way/pace/volume as 2008. But the story shows something loud and clear: seizing a slower market matters—and skipping it can trap you in a costly loop.
The 5-Year Ownership vs Renting Math
Let’s walk through the math. Imagine you’re currently renting, paying $3,250/month. You are looking to buy in Toronto, perhaps a semi-detached 3-bed / 2-bath home priced at $1,300,000.
Purchase Price: $1,300,000
*Assumptions based on current rates and TRREB reports:
Down Payment (8%): $104,000
Mortgage: $1,196,000
Rate: 3.95% 5-year variable
Amortization: 25 years
Monthly Payment: $6,340
✅ If You Buy Today (5-Year Outlook)
1. Mortgage Paydown
After 5 years, you’ve paid down roughly $189,000 of principal.
Your remaining mortgage: $1,007,000.
*Based on mortgage rate of 3.95% on a 5-year variable with a 25 year amortization.
2. Home Value
$1,300,000 → $1,507,000 in five years.
*Assuming 3% average annual appreciation. Appreciation per TRREB typically ranges between 3-8% on a 10-year average.
3. The Wealth you Build in Toronto Real Estate
$189,000 from paying down your principal mortgage AND $207,000 from market appreciation for a total wealth build of $396,000!!!
That’s money in your pocket that was created simply by living in your home and letting time do its thing.
❌ If You Continue Renting for 5 Years
Rent: $3,250/month
5-year total: $195,000
Equity gained: $0
Wealth built: $0
Ownership progress: $0
All of this money goes in your landlord’s pocket instead of YOUR pocket.
💥 The Real Wealth Gap Over 5 Years
Owning: +$396,000
Renting: –$195,000
Difference: $591,000 in your long-term wealth trajectory.
That gap is the real cost of waiting.
Buying Isn’t Always “Right Now”
Timing the market isn’t the only factor.
Buying makes sense if:
You plan to stay 5+ years
You have job stability
Your monthly affordability is solid
You want to build equity instead of paying someone else’s mortgage
Renting makes sense if:
You’re moving soon
You’re unsure about neighbourhood
You’re building savings
You’re still getting financially organized
This isn’t about pressure. It’s about clarity.
Your Action Plan
1. Run your real numbers. Connect with a mortgage broker to obtain a pre-approval and better understand your monthly costs and affordability (I can recommend excellent broker options).
2. Map your 5-year life horizon. If you’ll stay put, buying wins.
3. Evaluate your neighbourhood match. Leslieville, Beaches, Riverside, Upper Beach, The Pocket, all have very different price trajectories and vibes.
4. Stop waiting for unicorn timing. Perfect moments don’t exist; smart entry points do.
5. Work with someone strategic (hi 👋) I help buyers find opportunities that align ROI with lifestyle.
Final Thought
The “wait and see” approach feels safe, but often it quietly costs you hundreds of thousands of dollars (literally). The market is soft. This is the time to buy. The deals are unmatched.
I help people like you build wealth through real estate.
Let’s goooooo…