Having a good down payment is essential to finding a property that you can afford. If you are not quite there yet with your finances, consulting a financial planner to help you meet your down payment goals is key to success. If you are currently renting a place, a good rule of thumb would be to put away whatever extra per month you would have to pay for a mortgage, insurance and taxes. That extra portion will not only show you whether you can feasibly afford to buy a home and maintain it, but it will also give you that extra push towards reaching your savings goal.
The best first step into a heated real estate market in Toronto is to purchase a condo. Condos will have a decent resale value as there will always be someone wanting to either get into the game or to downsize. If the condos in your preferred areas are still out of your price range, then consider buying a new build place off-plan. Once it is built it will appreciate significantly enough to make your deposit worth it. Once the first tenants move in, the appreciation rate drops-off but by the time you are ready to sell to move up the ladder, you will have earned back everything you put into your condo.
If you are not willing to go the condo route to get into the market, then choosing a neighbourhood you can afford is the other best method of breaking into real estate. You will have to trade-in proximity to the city and perhaps endure a longer commute in to work every day, but once you have a foothold in the market, it is always easier to move up.
