The Toronto condo market is facing fresh challenges in 2025, with several pre-construction condo projects stalled due to rising costs and U.S. steel tariffs. As an Ontario mortgage broker, I work closely with clients navigating pre-construction financing, and it’s important to understand how these market shifts could impact both buyers and investors.
What’s Causing the Delays?
Many developers in Toronto are struggling to move forward with condo projects due to significant increases in construction costs. A major contributing factor is the 25% U.S. steel tariff recently imposed on Canadian imports, which has dramatically raised the cost of building materials. This, coupled with ongoing labour shortages and inflation, has led to uncertainty around project timelines and budgets.
City of Toronto’s Response
To address this issue, the City of Toronto is considering deferring development fees for stalled projects. This move could provide financial relief to developers, helping them resume construction and deliver much-needed housing inventory to the market.
Impact on Buyers and Investors
For buyers of pre-construction condos, these delays could mean longer wait times for occupancy, increased carrying costs, or changes to mortgage financing needs. For investors, there’s a risk that project timelines may affect return on investment and rental income potential.
Additionally, a delay in new condo supply may contribute to higher condo prices in the future due to limited inventory, especially in high-demand areas like Downtown Toronto, North York, and Etobicoke.
How to Navigate This Market
As a licensed mortgage broker in Ontario, I help clients adapt their strategies based on real-time market conditions. Whether you’re buying a pre-construction condo or refinancing an investment property, it’s critical to have a financing plan that considers potential delays or cost increases.
I can help you:
- Assess your mortgage pre-approval timeline
- Explore rate holds and flexible financing options
- Connect with lenders familiar with pre-construction nuances
- Strategize for long-term investment goals
Final Thoughts
Stalled condo projects are a challenge, but with the right guidance, you can still make informed decisions and succeed in the Toronto real estate market.
