October 1, 2026

Toronto homebuyers could potentially save up to $18,000 in Municipal Land Transfer Tax under a new proposal announced today by Toronto mayoral candidate Brad Bradford.

Bradford is proposing to waive Toronto’s Municipal Land Transfer Tax (MLTT) on the first $1.1 million of the purchase price of a primary residence.

For anyone who has purchased a home in Toronto—or considered doing so—that is a significant number.

As a REALTOR® and a member of the Toronto Regional Real Estate Board’s Government Relations Committee, I’m especially pleased to see meaningful reform of the Municipal Land Transfer Tax being discussed. This is an issue TRREB has advocated on for many years.

While this is currently a campaign proposal rather than City policy, having substantial MLTT relief become part of the mayoral conversation is an important development for Toronto homebuyers and homeowners.

What Is Toronto’s Municipal Land Transfer Tax?

Toronto is unique in Ontario because buyers purchasing property within the City pay a Municipal Land Transfer Tax in addition to the Ontario Land Transfer Tax.

The City introduced the MLTT in 2008.

That means a Toronto homebuyer can effectively face two land transfer tax bills when purchasing a property—one provincial and one municipal.

Under Toronto’s current rates, the municipal tax alone on a $1.1 million residential purchase is approximately $18,000 before any applicable rebates.

And this money is due at closing, when buyers are already managing a down payment, legal fees, moving expenses and other costs associated with purchasing a home.

What Is Being Proposed?

Under Bradford’s proposal, Toronto would provide a full rebate of the Municipal Land Transfer Tax on the first $1.1 million of the purchase price of a primary residence.

One particularly significant aspect of the proposal is that the relief would not be limited to first-time homebuyers.

If implemented as proposed, existing homeowners purchasing another primary residence could benefit as well.

For a purchase of $1.1 million, the potential municipal land transfer tax savings would be approximately $18,000.

For properties above $1.1 million, the proposed relief would apply to the first $1.1 million of the purchase price, with the applicable MLTT continuing on the portion above that amount.

To be clear, this has not become law. It is a campaign proposal and would require the necessary steps at City Hall before taking effect.

Why This Matters Beyond First-Time Buyers

When we talk about housing affordability, the focus is understandably often on first-time buyers.

But there is another important part of the housing conversation: mobility.

Consider a growing family living in a condo that needs an extra bedroom and would like to move into a house.

Or an empty-nester living in a larger detached home who would prefer to downsize into a condo.

Both may already own a home, but when they purchase their next Toronto property, the Municipal Land Transfer Tax becomes another significant cost associated with making that move.

That transaction cost can influence people's decisions about whether moving makes financial sense.

Reducing that barrier could make it easier for homeowners to move into housing that better fits their changing needs—and potentially free up housing for the next family or buyer.

A healthy housing market isn't just about helping people get into their first home. It's also about allowing people to move through different types of housing as their lives change.

Years of Advocacy on the Municipal Land Transfer Tax

This announcement is particularly meaningful to me because of my involvement with the Toronto Regional Real Estate Board’s Government Relations Committee.

Most consumers understandably don't see much of the advocacy work that happens behind the scenes in organized real estate.

TRREB has been advocating for meaningful reform of the Municipal Land Transfer Tax for many years, raising concerns about the additional upfront cost it places on Toronto homebuyers and the effect transaction taxes can have on housing mobility.

Being involved with the Government Relations Committee has given me an opportunity to see firsthand the amount of work that goes into bringing housing issues to policymakers and keeping those conversations moving.

Policy change rarely happens overnight.

It often requires years of research, meetings, discussions and continued advocacy before an idea gains meaningful traction.

That’s why seeing substantial MLTT relief being discussed in a Toronto mayoral campaign is significant.

Regardless of the outcome of the election or the ultimate form this proposal takes, an issue that TRREB has advocated on for years is now receiving serious public attention.

There Are Still Important Questions to Answer

Of course, there is another side to the discussion.

The Municipal Land Transfer Tax is a significant source of revenue for the City of Toronto. Toronto’s 2026 budget anticipated approximately $850 million in MLTT revenue, with the majority supporting operating costs and the remainder contributing to capital financing.

Any major reduction in the tax therefore raises a legitimate question: How would the City replace that revenue or adjust its spending?

That will be an important part of the debate around this proposal.

Housing policy is rarely solved by one initiative alone. Toronto also needs adequate housing supply, efficient development approvals, infrastructure investment and policies that support the creation of different types of housing.

But reducing the enormous upfront transaction costs associated with purchasing a home deserves to be part of that conversation.

A Significant Development for Toronto Homebuyers

For years, REALTORS® and TRREB have raised concerns about the impact of the Municipal Land Transfer Tax on Toronto homebuyers and homeowners.

Today’s announcement does not mean the tax has changed.

But it does represent an important development in a conversation that has been taking place for a very long time.

From my perspective as both a Greater Toronto Area REALTOR® and a member of TRREB’s Government Relations Committee, I’m encouraged to see the cost of moving—and the effect that cost can have on housing affordability and mobility—receiving this level of attention.

I’ll be following this proposal closely as Toronto’s mayoral campaign continues.

In the meantime, if you're considering purchasing a home in Toronto, remember that the Municipal Land Transfer Tax remains in effect under the current rules and should be factored into your closing costs.

If you’re thinking about buying or selling in Toronto or the Greater Toronto Area and want to understand the costs associated with your next move, feel free to reach out. I’m always happy to have a conversation.

Paul Lee

REALTOR® | Greater Toronto Area

This article is for general informational purposes. The proposal discussed above is a campaign proposal as of October 1, 2026 and has not been implemented as City of Toronto policy. Buyers should obtain legal and financial advice regarding taxes, rebates and closing costs applicable to their individual circumstances.

Fewer Homes, More Competition—Is the Toronto Market Turning?

The Greater Toronto Area (GTA) housing market is becoming a little harder for buyers to navigate.

In August 2026, fewer homes came onto the market compared with a year ago, and that decline in inventory appears to be influencing overall sales activity. While home sales also edged lower, the bigger story is the sharp drop in new listings—and what that could mean for competition and home prices heading into the fall.

After a period of softer pricing and greater buyer choice, the Toronto real estate market may be entering another stage of transition.

August 2026 GTA Housing Market Snapshot

• Home Sales: 5,057 (↓ 2.1% year over year)

• New Listings: 12,075 (↓ 14.1% year over year)

• Average Selling Price: $993,410 (↓ 2.7% year over year)

• MLS® HPI Composite Benchmark: (↓ 4.5% year over year)

• Month-over-Month: Seasonally adjusted sales edged lower, while new listings increased compared with July.

Fewer Listings Are Changing the Market

The most notable figure in August wasn't the modest decline in sales. It was the 14.1% drop in new listings compared with August 2025.

With fewer homes entering the market, buyers in some GTA neighbourhoods are facing less choice than they had previously.

That matters because market conditions are influenced by both sides of the equation. When supply becomes more limited while buyer demand remains relatively steady, competition can gradually increase.

The result may be less negotiating room for buyers and stronger conditions for sellers—particularly for well-priced homes in desirable locations.

GTA Home Prices Are Still Below Last Year

Despite the tightening supply, home prices remain below 2025 levels.

The average selling price in the GTA was $993,410 in August 2026, down 2.7% compared with August 2025.

The MLS® HPI Composite benchmark was also down 4.5% year over year.

However, the month-over-month picture is worth watching.

On a seasonally adjusted basis, the MLS® HPI Composite was essentially unchanged from July, while the average selling price edged higher.

That suggests the pace of price adjustment may be slowing.

If inventory remains tight and buyer activity improves, the market could gradually move toward price stabilization.

What Does the August Market Mean for Buyers?

For GTA home buyers, affordability remains one of the more positive aspects of the current market.

Average prices are still below last year's levels, while mortgage rates have remained relatively stable. This has created a more accessible environment for households that may have been priced out or hesitant to enter the market previously.

But buyers are now facing a different consideration: waiting versus competing.

If inventory continues to tighten and prices begin to stabilize, waiting for greater economic certainty could come with a trade-off.

There is no guarantee that prices will rise sharply, but the current supply trend suggests that buyers should pay close attention to the number of homes available in their specific neighbourhood and price range.

What Does the August Market Mean for Sellers?

The August GTA housing market is showing some encouraging signs for sellers.

The decline in new listings means there is less competition from other sellers compared with a year ago. At the same time, buyers are still active enough to support thousands of transactions across the GTA.

That doesn't mean every property will attract multiple offers or sell quickly.

Pricing remains critical.

Homes that are appropriately priced, well presented, and positioned in desirable neighbourhoods may benefit most if buyer competition continues to increase.

For sellers considering a move this fall, understanding the balance between current inventory and buyer demand may be more important than simply looking at the GTA-wide average price.

Is the Toronto Housing Market Starting to Turn?

It is too early to call this a full market recovery.

However, several indicators are worth watching.

Sales remain relatively active, new listings are significantly lower than last year, and the pace of annual price declines has moderated.

Together, these factors suggest the GTA housing market is gradually moving toward a more balanced environment.

If buyer confidence improves while inventory remains constrained, competition could increase further in the months ahead. That could eventually provide support for home prices.

At the same time, economic uncertainty remains a key factor. Concerns surrounding international trade, inflation, employment, and future borrowing costs continue to influence household decisions.

Housing Supply Remains a Long-Term GTA Challenge

The monthly resale market is only one part of the broader housing picture.

TRREB continues to highlight the need to address structural barriers to housing affordability across Ontario, including restrictive zoning, development charges, taxes, and lengthy approval processes.

These factors influence how much housing can be built, how quickly new projects move forward, and ultimately how much new homes cost.

Improving resale market conditions may help buyers and sellers in the short term, but increasing the long-term supply of attainable housing remains an important challenge for the GTA.

Looking Ahead to Fall 2026

The GTA housing market enters the fall with a noticeably different supply-demand balance than it had a year ago.

Buyers still have opportunities, particularly with prices remaining below last year's levels. But fewer listings mean those opportunities may become more competitive if demand continues to strengthen.

For sellers, the declining supply of competing listings could create more favourable conditions—especially for properties that are priced realistically for today's market.

The key question heading into the fall is whether buyer confidence will improve enough to meet the increasingly limited supply of available homes.

If it does, the GTA could see further stabilization in home prices and potentially renewed price growth later in the year.

As always, the GTA-wide numbers only tell part of the story. Market conditions can vary significantly by neighbourhood, property type, and price range. Understanding what is happening in your specific area is ultimately more useful than relying on the headline numbers alone.

The Greater Toronto Area (GTA) housing market continued to tighten in August 2026 as fewer homes came onto the market compared with a year ago.

GTA REALTORS® reported 5,057 home sales, down 2.1% year over year, while new listings fell 14.1% to 12,075. The larger decline in new listings suggests that reduced inventory may be limiting buyer choice in some neighbourhoods.

Home prices remain below last year's levels, with the average selling price at $993,410, down 2.7% year over year. The MLS® HPI Composite benchmark declined 4.5%.

However, the month-over-month trend is beginning to change. On a seasonally adjusted basis, the MLS® HPI Composite was essentially flat from July, while the average selling price edged higher.

What This Means

Buyers continue to benefit from improved affordability, but fewer available homes could mean more competition if demand strengthens through the fall.

For sellers, tighter inventory may create more favourable conditions for well-priced properties.

The GTA market is not yet in a full recovery, but the combination of declining inventory and slowing price declines is worth watching closely as we move into the final months of 2026.

The Greater Toronto Area (GTA) housing market continued its gradual shift in July 2026, with tighter market conditions becoming more evident as the summer progressed.

While overall home sales remained relatively stable compared to a year ago, the supply of new listings declined sharply. As a result, buyers are beginning to face more competition, and the negotiating advantages seen earlier this year may slowly begin to narrow.

For anyone following the Toronto real estate market, July reinforces a trend that has been building for several months: inventory is shrinking, buyer activity is holding steady, and market balance is gradually changing.

GTA Home Sales Remain Resilient Despite Economic Uncertainty

According to the Toronto Regional Real Estate Board (TRREB), 5,995 homes were sold across the GTA in July 2026, just 0.9% lower than July 2025.

While sales were essentially flat year over year, the more significant change came from the supply side.

Only 14,484 new listings entered the MLS® System during the month, representing a 17.8% decline compared to last year.

Seasonally adjusted data also showed that home sales increased compared to June while new listings declined again, continuing the tightening trend seen throughout the summer.

This means that active buyers are competing over fewer available homes—a dynamic that often supports stronger pricing over time.

GTA Home Prices Continue to Stabilize

Although prices remain below last year's levels, the pace of decline continues to moderate.

July 2026 Market Statistics:

• Average Home Price: $1,003,956

• Average Selling Price: Down 4.5% year over year

• MLS® Home Price Index: Down 4.6% year over year

On a seasonally adjusted basis, the MLS® HPI edged slightly higher compared to June, while the average selling price remained relatively stable.

Rather than pointing to further price weakness, these figures suggest the market may be approaching a more balanced environment.

What This Means for GTA Buyers

Buyers continue to benefit from improved affordability compared to recent years, but conditions are beginning to change.

With fewer homes entering the market, buyers may have fewer opportunities to negotiate than they did earlier this year.

Economic uncertainty—including inflation, borrowing costs, and global trade concerns—continues to influence purchasing decisions. However, stronger-than-expected employment and economic data could encourage more buyers to return to the market if confidence continues improving.

Those planning to purchase later this year may want to watch inventory levels closely, as tighter supply could gradually increase competition.

What This Means for GTA Sellers

The market is becoming more encouraging for sellers.

Although pricing has not fully recovered, declining inventory means well-presented and appropriately priced homes may attract greater buyer interest than they did earlier in the year.

Success still depends on pricing strategy, location, and property condition, but improving supply-demand balance is creating more favourable conditions for many sellers.

Housing Supply Remains a Long-Term Challenge

Beyond monthly statistics, TRREB continues to emphasize the importance of improving housing affordability by addressing municipal barriers to new housing.

Restrictive zoning, lengthy approval processes, and rising development costs continue to add significant expenses to new housing construction across the GTA.

Reducing these barriers remains an important part of improving long-term housing affordability for future buyers.

July 2026 GTA Market Snapshot

• Average Home Price: $1,003,956 (↓ 4.5% YoY)

• Home Sales: 5,995 (↓ 0.9% YoY)

• New Listings: 14,484 (↓ 17.8% YoY)

• MLS® HPI Composite Benchmark: (↓ 4.6% YoY)

• Month-over-Month: Sales increased while new listings declined, signalling continued tightening through the summer.

Looking Ahead

The GTA housing market continues to move toward greater balance.

While buyers still have opportunities, the combination of declining inventory and steady demand suggests market conditions could become more competitive as we head into the fall.

If buyer confidence continues to improve and listing inventory remains limited, home prices may begin to stabilize further in the months ahead.

As always, every neighbourhood tells a different story. Understanding how these broader market trends affect your local community is the key to making confident real estate decisions, whether you're buying, selling, or simply planning your next move.