Here are The Globe and Mail’s top housing and real estate stories this week, with the lowest mortgage rates available in Canada today, commentary from our mortgage expert and one home worth a look.
The Bank of Canada raises interest rate by a quarter percentage point
The Bank of Canada raised its benchmark interest rate by a quarter percentage point on Wednesday, restarting its campaign to tighten monetary policy after it paused in January. The move is in response to stubborn inflation and surprising resilience in the Canadian economy, reports Mark Rendell. Canada’s policy rate is now at its highest level since 2001.
Higher interest rates are coming for more than just mortgage borrowers
The central bank’s decision to increase its trend-setting rate to 4.75 per cent will immediately affect Canadians, writes Erica Alini. It will likely drive an uptick in consumer delinquencies and weigh on a recent rebound in home prices, experts say. It could also have ripple effects in the rental market, forcing some landlords to off-load investment properties. The first people to feel the sting will be those with debts that have variable interest rates: adjustable-rate mortgages and those who have lines of credit.
Floating your way into Vancouver’s housing market
Vancouver real estate is notoriously expensive, but there are some non-traditional ways into the market, writes Kerry Gold. Jen Abrams has lived for seven years in a 978-square-foot float house called the Lilypad, moored at Richmond Marina and walking distance to the SkyTrain station, which brings her downtown in 15 minutes. The Lilypad, one of three dozen float homes in the marina, is two floors, with kitchen, laundry room, dining and living rooms, one bedroom and den, patios, garden, storage and light filled rooms.
Home of the week: A converted church near Toronto’s High Park
384 Sunnyside Ave., unit 202, Toronto
In 2009, a century-old church building in Toronto’s leafy High Park neighborhood was transformed into 24 residential lofts. This unit provides approximately 1.836 square feet of living space on two levels. The primary bedroom retains some of the character of the old church with wood rafters and a large arched window. There’s also a guest bedroom and a powder room on the main level.
What do you think is the asking price for this house?
a. The asking price is $1,999,990.