Home of the Week, 2786 W 29th Ave, Vancouver.Credit: When They Find Us
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 fear Ottawa’s new mortgage rules will drive up prices
When the new mortgage rules go into effect in December, prospective buyers believe the market will only heat up further, writes Rachelle Younglai. Under the new rules, first-time homebuyers will have a longer time to pay down their mortgages and all buyers will be able to put down smaller down payments on homes worth more than $1-million. But prospective buyers looking for their first home are worried that an influx of new buyers will increase competition and force them to take a longer mortgage — and more debt — just to secure a deal.
It is estimated that monthly mortgage payments on average-priced homes would be about 9-per-cent lower on a 30-year amortization versus 25 years, but borrowers will also incur more debt over a longer period of time and will pay more interest.
Tenant’s rights group labels one investor Ontario’s top ‘renovictor’
According to research conducted by tenant’s rights advocate Acorn, Ontario rental property investor Michael Klein appears as a director of companies that own at least 21 properties where tenants have been sent renoviction letters in recent years, highlighting a lack of renter protections in the province’s tenant laws. The existing laws that are intended to regulate tenants and landlords create powerful financial incentives for landlords to evict by any means – good or bad faith – especially in an environment of rapidly rising rents, writes Shane Dingman.
Acorn has been calling for vacancy control, to extend existing rental rates to incoming tenants, to remove the incentive to pursue so-called no-fault evictions for renovation or landlord’s own-use. Ontario’s Landlord and Tenant Board has the power to rule that a renoviction was made in bad faith, but critics say a loophole could allow renovicting landlords to ignore a law that requires them to offer tenants a chance to return to their updated apartments.
Breaking a mortgage contract for better rates can pay off – but beware of the costs
For those stuck paying elevated mortgage rates, or who want to cut high-interest consumer debt, breaking a mortgage contract could make sense. But experts say borrowers need to watch out for what could be hefty fees. Some mortgages, including most with a variable rate, have a fairly straightforward penalty of three months of interest payments. But it can get more complicated with fixed rates where the charges can vary considerably by lender. If interest rates drop further, as they’re expected to, borrowers could face higher penalties on the interest rate spread. Mortgage experts say homeowners could also consider a home equity line of credit to pay down higher-interest debt as a short-term solution.
Competition Bureau obtains court order for probe into Canadian Real Estate Association’s commission policies
Canada’s competition watchdog has obtained a court order requiring the Canadian Real Estate Association to turn over documents as part of an investigation into whether their rules encourage realtors to charge excessive sales commissions and reduces competition among home listing services, writes Younglai. The watchdog said it is also looking at whether CREA rules could result in less competition and higher costs for both buyers and sellers. The competition watchdog said it is looking at CREA’s buyer broker commission rule, which requires sellers’ agents to offer compensation to the buyers’ agents for properties listed on the Multiple Listing Service. The order from the Federal Court requires CREA to produce records and information relevant to the bureau’s investigation.
Home of the Week: A ‘very special’ house with Vancouver views
Home of the Week, 2786 W 29th Ave, Vancouver.CREDIT: When They Find Us
2786 W 29th Ave., Vancouver – Full gallery here
Built in the mid-1960′s, the five-bedroom home was designed by architects Arthur Erickson and Geoffrey Massey, who went on to design the Simon Fraser University campus and Vancouver’s MacMillan Bloedel building. Much of the interior is finished with rough concrete, including the living room walls, stairs and fireplace. The kitchen was expanded to allow for more space, and the windows face into the verdant courtyard or provide vistas of the city and mountains. Designed with good acoustics in mind, the living room makes for a perfect space for gatherings around a piano.
Guess the price
b. The asking price is $5,250,000.