Latest interest rate cut should provide variable rate mortgage relief and the Home of the Week: Canadian real estate news for October 25

Open this photo in gallery:

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

Try The Globe’s business and investing news quiz

Bank of Canada cuts its key interest rate by a half-point to 3.75%

As widely expected, the bank’s governing council lowered the benchmark policy rate by half a percentage-point to 3.75 per cent, and said its fight with inflation is almost over. This is the fourth consecutive cut since June, writes Mark Rendell. The rate cut should offer some relief to homeowners with variable rate mortgages. Interest rates on fixed-rate mortgages, by contrast, are likely to move less since they are based on longer-term bond yields, which have already moved down in anticipation of future rate cuts. The bank said that lower interest rates, coupled with the incoming changes to mortgage rules in December, could mean the slow housing market could pick back up sooner than expected.

Time to buy? Some house hunters decide to strike as competition cools down

The Canadian Real Estate Association, along with economists and mortgage brokers, admit that home buyers have been clinging to the sidelines far longer than almost anyone expected, as they wait for mortgage rates to drop even further. That dynamic is bolstering the belief of another camp of aspiring homeowners, who are betting that stubborn sellers will have to cave on prices eventually. Carolyn Ireland talked to three sets of Ontario buyers who secured their homes as the market slowed down. Some buyers said the softer market conditions this summer meant they could take their time to look around and submit offers with conditions on financing and home inspection.

Is the new Canadian home buyer more likely to be a solo buyer?

A growing share of Canadians are tackling home ownership on their own. According to a survey released in July, 42 per cent of prospective first-time home buyers said they were considering applying for a mortgage alone, writes Kelsey Rolfe. The trend tracks with Canada’s demographic shift: Single-person households became the predominant household type for the first time in the country’s history in 2016, and as of 2021 made up 29 per cent of all households, according to Statistics Canada. Realtors say more young Canadians are feeling pressure to enter the housing market, and most are doing so with parental help.

Opinion: A mortgage strategy for stickhandling your way through the variable- versus fixed-rate debate

Your mortgage lender would love you to take a fixed-rate mortgage right now. With interest rates that track Bank of Canada rate changes, a variable-rate mortgage can be expected to cost steadily less for a borrower in the months ahead, which means an unpredictable, reduced flow of interest revenue for the lender. However, fixed mortgage costs can insulate themselves from any future uncertainty. Personal finance columnist Rob Carrick breaks down what to look out for as you decide on a mortgage.

Home of the Week: Burlington Bay home with a ‘complete resort feel’

Open this photo in gallery:

90 Oaklands Park Court, Burlington, Ont. – Full gallery here

Sitting on a quiet Burlington street — that has seen more than its share of billionaires and millionaires over the years — this home has undergone a renovation inspired by Vancouver’s Fairmont Pacific Rim hotel. Nowhere is that inspiration more apparent than in the kitchen — two granite islands waterfall to the warm oak floor, resembling a check-in desk, and above the prep area is a square wood panel in the same honey colour. A step down from the kitchen is a large living room with a wall of book-matched marble. The backyard has been renovated with a salt-water infinity pool, acting as a private retreat from the rest of the world.