A federal catalogue of home designs and an unchanged mortgage stress test: Canadian real estate news for December 16

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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.

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National home sales slowed further in November as high rates continue to spook buyers

The number of resale transactions fell 0.9 per cent from October to November, the fifth straight month of declines, according to the Canadian Real Estate Association (CREA). Even if potential buyers are prepared to make a purchase, many cannot afford the current mortgage prices – especially as the Bank of Canada says it is prepared to raise rates even further, writes Rachelle Younglai. The declines suggest homeowners are not in a position where they are forced to sell and are choosing to hold onto their properties until there are more buyers.

Canada’s Bank regulator to leave mortgage stress test unchanged

The Office of the Superintendent of Financial Institutions (OSFI) said the minimum qualifying rate (MQR) for uninsured mortgages would stay at 5.25 per cent, or two percentage points above their actual mortgage contract rate, whichever is higher, writes Younglai. OSFI reiterated that it expects that lenders will apply the MQR to ensure that borrowers can handle a higher interest rate. The stress test has made it harder for potential buyers to qualify for a bank loan and that has contributed to the slowdown in home sales – which has caused mortgage brokers and the real estate industry to call on OSFI to relax the standards.

This week’s lowest available mortgage rates

Mortgage rates are finding gravity quickly. In the last week, almost every leading fixed term is down anywhere from five to 20 basis points, writes Robert McLister. Interestingly, the lowest nationally available uninsured variable just went up. HSBC boosted its bank-leading variable by five bps to 6.55 per cent as floating-rate demand picks up. The lowest-advertised uninsured bank rate we track is from HSBC at 5.69 per cent. But regional brokers like Butler Mortgage are undercutting it by 20 bps, or 5.49 per cent.

Ottawa to launch catalogue of home designs to speed up house-building process

A consultation process will begin next month to develop a catalogue of pre-approved home designs to accelerate the home-building process for developers, said Housing Minister Sean Fraser. He said it’s a reboot of a federal policy from the post-Second World War era, when the Canada Mortgage and Housing Corp. developed straightforward blueprints to help speed up the construction of badly-needed homes. The modern-day version of the catalogue will focus on low-rise builds, such as small multiplexes, student housing and seniors’ residences, then explore a potential catalogue for higher-density construction.

Calgary atomic ranch-style home impeccably restored to 1950′s vintage

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2312 State Road SW, Calgary

Built in 1953, the two bedroom home is a perfectly-maintained example of the atomic ranch-style design, with most design features remaining unchanged. Vibrant colours, textured accents, and oblique angles permeate every aspect of the house, but the layout reveals its true character – inside, the curved lines of three half walls adjacent to the main entrance direct one’s view across the living room, and towards the backyard, where a private forest of sorts is framed by an elongated corner window. There’s even a built-in bar and billiard room on the lower floor.