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.
Take The Globe’s business and investing news quiz
Canada needs 3.45 million more homes by 2030 to cut housing costs as population grows, CMHC predicts
A new report from the Canada Mortgage and Housing Corp. says Canada needs 3.45 million more homes to bring housing costs down as the population increases, reports Rachelle Younglai. That’s in addition to the 1.68 million that are expected to be built by 2030 if the pace of construction remains the same. If Canada continues to admit record levels of about half-a-million new permanent residents per year, the CMHC predicts the number of new homes required will raise to 4 million.
Ottawa will remove GST from new rental construction in response to rising cost of living
In an announcement on Thursday, Prime Minister Justin Trudeau said the federal sales tax would be removed from new rental construction effective immediately, reports Marieke Walsh, reviving a promise the Liberals made in the 2015 federal election to address the housing crisis but then dropped in future platforms. Ontario announced it would be removing the provincial sales tax on new rental builds as soon as possible, and Trudeau encouraged other provinces to do the same.
This week’s lowest available mortgage rates
The adage, “Don’t put all your eggs in one basket,” should be Canadianized to, “Don’t put all your eggs in one home,” writes Robert McLister in his weekly column. It’s easy to think homeowners can rely on their home value skyrocketing to get them through their golden years, but a lot can happen before retirement to alter the real estate supply-demand curve.
For a few homeowners, the end of the road is a power of sale
Real estate industry watchers are growing increasingly nervous about the number of power-of-sale properties popping up on multiple listing services, Shane Dingman writes. In a power of sale, if the home is sold for more money than is needed to cover the debt to the lender, the owner will be given the difference. But the owner will be evicted and their home sold without their say-so.
Rising interest rates are pressuring lenders and borrowers, and are a staggering rise in the cost of ownership for those who took out loans to buy homes at peak prices.
Home of the week: Family-friendly home comes with a hand-built backyard office
Home of the Week, 378 Lumsden Ave., Toronto, Ont.Vision 360 Tours Inc.
This three-bedroom, two-bathroom property hugs the edge of Taylor Creek Park near Toronto’s Danforth Village, with a backyard cozying up to the tree canopy belonging to Taylor Creek Park. The house has seen some major renovations since the last owners bought it in 2016, including an open-concept kitchen and new hardwood floors. It has a strong connection to nature. Ivy plants surround the home, which is surrounded by mature trees and perennials.
But the star of the house is the backyard office. The owners renovated a small garden shed into a stylish home office, inspired by the designs from their own company, Cabinscape. A small garage door acts as a window and a tiki bar that overlooks the backyard’s multilevel deck. “For me, being in nature is incredibly grounding. I’m able to hear my thoughts in this busy life in the city. Being able to just walk into the forest is so calming and grounding, and I wanted that for my children,” owner Laura Mendes said.
Guess the price
c. The asking price is $1,650,000.