Five myths about buying a home in Toronto — debunked.

Buying a home in Toronto is exciting — and surrounded by more bad advice than almost any other purchase you'll make. Here are five of the most persistent myths, set straight.

After years of guiding buyers through this market, we've heard every one of these at the kitchen table. Each contains a grain of truth, which is exactly why they mislead. Let's separate the useful part from the myth.

Myth 1: You need a 20% down payment

You don't. In Canada, the minimum down payment is 5% on the first $500,000 of the purchase price and 10% on the portion between $500,000 and $1.5 million; 20% is only required at $1.5 million and above. (As of December 15, 2024, the federal government raised the insured-mortgage price cap from $1 million to $1.5 million — a meaningful change for Toronto buyers.) A larger down payment does save you on mortgage-default insurance and interest, so there are good reasons to put more down if you can. But the 20% "rule" keeps plenty of ready buyers on the sidelines who didn't need to be there. It's also worth knowing the tools built for first-time buyers — the First Home Savings Account (FHSA), the Home Buyers' Plan (which now lets you withdraw up to $60,000 from your RRSP), and Ontario's and Toronto's land-transfer-tax rebates.

Myth 2: Waiting for a crash is the smart play

Plenty of buyers sit out hoping to time the bottom. The trouble is that no one — us included — can reliably predict where the market turns. Over the long run, Toronto real estate has trended upward through cycle after cycle, and the years spent waiting are years of appreciation and equity you don't get back. If you're financially ready and you find a home that fits your needs and budget, that readiness matters more than a forecast. Time in the market tends to beat timing the market.

Myth 3: You should only buy in a buyer's market

It sounds logical — buy when supply is high and you hold the leverage. But "wait for a buyer's market" assumes prices will keep falling, which isn't guaranteed, and a buyer's market can correct upward as quickly as it arrived. In a tighter market, homes can appreciate faster, which rewards buying sooner if you're in it for the long term. Rather than trying to read the room perfectly, anchor the decision to your own financial footing and how long you plan to stay.

Myth 4: You can skip the inspection in a competitive market

When competition heats up, buyers feel pressure to drop conditions to make an offer stand out — and the inspection is often first to go. We understand the instinct, but waiving it is a real risk: a home that shows beautifully can still hide structural, electrical or moisture problems that cost far more than the inspection would have. If you need a clean offer to compete, a pre-offer inspection is the smart compromise — you do the inspection before you bid, so your offer is firm but you're not flying blind. (For what to ask the inspector, see our home inspection guide.)

Myth 5: You don't need a REALTOR® to buy

With listings a click away, it's tempting to think you can go it alone. But Toronto is one of the more complex and competitive markets in the country, and an experienced agent earns their keep precisely where it's hard to DIY: navigating multiple-offer situations, negotiating price and terms, spotting issues before they become problems, and surfacing homes — including off-market opportunities — you won't find on the public portals. Deep neighbourhood knowledge and a steady hand through the legal and financial steps are what turn a stressful process into a confident one.

You don't have to navigate Toronto real estate on rumours and rules of thumb. The reality is almost always more workable than the myth.

Understanding how this market actually works is what lets you make decisions that fit your life rather than someone else's worry. When you're ready, we're glad to walk you through it, step by step.

Julian Pilarski — Sales Representative, Royal LePage Real Estate Services Inc., Brokerage. West Toronto locals, top 1% in Canada.