Mortgage rules could cost homebuyers in the long run and the Home of the Week: Canadian real estate news for November 8

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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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‘No free lunch’: Relaxed mortgage rules will cost homebuyers in the long run, BoC senior deputy warns

Bank of Canada senior deputy governor Carolyn Rogers is warning that younger buyers taking advantage of new mortgage rules aimed at helping them get into the market will pay a big price on long-term costs, writes Rachelle Younglai. Using today’s interest rate and the average mortgage size, Rogers said that a borrower who stretches out their mortgage payments over 30 years instead of 25 years could reduce their monthly payments by $200 — but would end up paying an additional $50,000 in interest costs over the life of the mortgage. Rogers added that lenders could face risks if homeowners encounter financial stress down the line.

Opinion: Look out for these personal finance pain points in the U.S. election aftermath

The rally for stocks and crypto following Donald Trump’s U.S. election win is a head fake that diverts attention from several investing and personal finance pain points ahead, writes personal finance columnist Rob Carrick. Investors sold U.S. Treasury bonds, causing bond yields to rise, which have a big influence on bonds here in Canada and, in turn, on the cost of mortgages. Mortgage rates are well off their recent peaks, but still well above the level where many homeowners locked in several years ago. Events in the bond market suggest further mortgage rate cuts aren’t imminent, a point worth noting if you’re on the housing market sidelines waiting for lower borrowing costs.

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Toronto home sales climbed 14% in October as homebuyers jumped back into the market

Home sales have been subdued for most of this year, even after the Bank of Canada made several cuts to its benchmark interest rate. But a bigger cut in October, paired with the newly-announced mortgage rules, pushed more buyers to make a purchase, writes Younglai. There were 6,390 transactions in the Toronto region last month after adjusting for seasonal factors, which was a 34-per-cent increase over October of last year and the highest volume since January of this year, according to the Toronto Regional Real Estate Board.

Vancouver’s plan to create urban villages has some residents anxious

Residents of Vancouver’s Commercial Street — a little shopping area part of the historic Cedar Cottage neighbourhood — are concerned that their little gem of a street will be obliterated now that the city has its sights on rezoning it for higher density, writes Kerry Gold. As part of the city’s Vancouver Plan, staff recently announced the next step in prezoning 17 intersections as future “villages” that will offer residential buildings up to six storeys without having to go through a lengthy rezoning. Some experts say the rezoning could provide much-needed density relief from larger, 20-storey towers, but one former urban city designer warned that distinctive features of neighbourhoods are often lost to generic redevelopment.

Home of the Week: A quiet place full of song in Lunenburg

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127 Ocean Stone Dr, Lunenburg, N.S. – Full gallery here

Formerly owned by a past member of the Canadian Tenors, this three-bedroom Cape Cod-style home faces out into the ocean and provides a great taste of small town life. Inside the foyer is rich-brown hardwood in a rich brown with bright-white risers on the stairs leading to the second floor. To the left is an office space, to the right is a door to the formal dining room and straight back is a living room with windows that opens to the waterfront view. The back harbour is popular with boaters, and there’s space and permission to build a dock and a boathouse. For now, the main way to enjoy the water is either cold plunge from the rocky beach, or lounging on the rear deck.