Ottawa eases mortgage rules for first time in a decade and the Home of the Week: Canadian real estate news for April 13

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Here are The Globe and Mail’s top housing and real estate stories this week and one home worth a look.

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First-time homebuyers can get 30-year mortgages to buy newly built houses under rule change

As part of a growing collection of initiatives designed to address Canada’s growing housing crisis, the federal government announced that it was easing its mortgage rules for the first time in a decade, writes Rachelle Younglai. First-time homebuyers who require mortgage insurance — due to making a down payment that is less than 20 per cent of the purchase price — will now be able to take out 30-year mortgages on a newly built home. It is unclear how much the longer amortization period will help first-time buyers, as it only applies to new builds, but it could boost demand for preconstruction homes.

A ‘weird’ March shows real estate market still off balance

Realtors and economists will say the spring real estate market has been surprisingly robust compared to expectations, but troubling trends appear when you zoom in on submarkets, writes Shane Dingman. The Toronto Regional Real Estate Board reported that March, 2024 had the lowest number of detached home sales in any March in at least 25 years - though home prices were slightly up from March, 2023. Some real estate experts point to the return of bidding wars as a potential culprit, which has taken some prospective home buyers by surprise.

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Ontario housing bill would bring in ‘use it or lose it’ rules to spur construction

The Ontario government unveiled a new housing bill that introduces new rules meant to spur developers sitting on approvals to start construction, writes Jeff Gray. The “use-it-or-lose-it” policy follows up on the government’s promise to require municipalities to expand their “lapsing” provisions, which essentially give expiry dates to construction approvals, and push developers to start building. The new bill also eliminates requirements for parking spaces in developments near public-transit stations, and backtracks on a policy introduced just two years ago that was meant to slow large increases to the fees municipalities charge developers for infrastructure.

Rob Carrick: Real estate wealth has devalued the status of being a millionaire in Canada

The status of millionaires today has been devalued by high real estate prices. If you own a home priced above $1-million, then you’re very possibly a millionaire by the classic definition, writes personal finance columnist Rob Carrick. But despite a high net worth, there’s a lot of house-rich “millionaire” retirees struggling to pay their bills. Having $1-million in liquid investments seems a higher and more practical level of millionaire status, given how difficult it is to access real estate wealth and put it to work.

Home of the week: Edwardian Toronto home ‘has its own personality’

7 Hurndale Ave., Toronto

The three-bedroom home was built in the nearby enclave of Playter Estates — named after one of the earliest settler families in present-day Toronto. The previous owners renovated much of the house, including revamping the dining room from an extra bedroom back to its original purpose and modernizing the kitchen. But some of the property’s original features are still present. The entrance foyer features a staircase with a built-in bench and arts & crafts details carved into the newel post, decorative stained glass windows line the home, and many of the principal rooms retain their wood trim. The home’s third floor was converted into a little quiet haven: a primary suite with glass doors, a dressing room, and plenty of light.