What happens if I keep losing bidding wars?
Nothing, financially. Your deposit is only at risk on an accepted offer. Losing five in a row is a signal about your search parameters, not about your maximum: change the segment rather than the number.
An unaccepted offer costs you the inspection if you did one pre-offer, and nothing else. There is no penalty and no record.
If you lose repeatedly, look at what is actually happening rather than raising your ceiling. Compare your bids to the sold prices: if you are consistently five percent short, you are shopping a segment above your budget and the fix is a different area, property type or size. If you are consistently close and losing on terms, the fix is preparation, meaning pre-offer inspection and pre-ordered status certificate so you can go firm safely.
What not to do is raise your maximum by increments after each loss. That is how buyers end up at a number they never chose, and the loss is not a house, it is twenty-five years of a payment they resent.
Next questions
How do bidding wars actually work in Toronto?
The property is listed below market, offers are held to a set date, and you bid blind: you are told how many competing offers there are but not what they contain. Winning usually requires no conditions, which is where the risk sits.
City of Toronto
How do I tell whether a house is overpriced?
Compare it to what similar properties sold for in the last ninety days within a few blocks, adjusted for size, condition and lot. The asking price is a marketing decision and tells you nothing about value.
Market practice