Home of the Week, 385 Brunswick Ave., unit 408, TorontoRaffi Tutundjian/Raffi Tutundjian/Jagged Lens
This week, the Bank of Canada lowered its benchmark interest rate once again, but suggested it might be the end of this easing cycle, despite increasing financial difficulties. Plus, how developers in Vancouver are surviving amid a slow condo market and one property worth a look.
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Interest rates
Bank of Canada cuts rate to 2.25%, how will it affect homebuyers?
The Bank of Canada building in Ottawa.Adrian Wyld/The Canadian Press
The Bank of Canada cut its benchmark interest rate this week, but signalled that it might be at the end of its easing cycle even as U.S. tariffs inflict significant and lasting damage on the Canadian economy. The bank’s governing council voted to lower the policy rate by a quarter-percentage-point to 2.25 per cent. This was the second consecutive cut, and the fourth cut this year.
As Erica Alini writes, the rate cut could lead to cheaper mortgages, which could convince more people to pull the trigger on a home purchase. But Phil Soper, president and CEO of Royal LePage, said not to expect a stampede of new homebuyers in the market just yet. Canadians remain concerned about the state of the economy and the security of their own jobs. Lower mortgage rates will entice some people to buy, but others will hold off.
This week’s lowest fixed and variable mortgage rates in Canada
Variable mortgage rates have dropped after the Bank of Canada cut its interest rate this week.Sarah Palmer/The Globe and Mail
The Bank of Canada delivered a widely expected interest rate cut on Wednesday, and the lowest advertised variable rates dropped immediately as a result. Variable shoppers should take note: Bank of Canada Governor Tiff Macklem suggested that this month’s rate cut could mark the end of its rate-cutting cycle if the economy performs as expected in the coming months.
Rates shown are the lowest available for each term/type and category (insured versus uninsured) as of market close on Thursday, Oct. 30.
Preconstruction condos
How the Toronto condo bubble burst
A lot on Raglan Avenue near St. Clair Avenue West in Toronto, where a condominium development called Alfie has been planned since 2022.EDUARDO LIMA/The Globe and Mail
The cratering of the Greater Toronto Area condo market is occurring in the midst of a housing crisis, and thus raises tough questions about how supply and demand came to be so out of sync. Preconstruction sales have fallen to a 30-year low, while a growing number of large-scale projects are being cancelled. The development industry blames policy failures – high fees, slow municipal approvals – as well as other forces, such as labour shortages, supply chain interruptions and inflation in the cost of building materials.
Indeed, the story of the bursting of the GTA condo bubble, and the ensuing ripple effect, shows what can happen when super cheap credit fuels rampant speculation, especially in the tiny and overpriced apartments that mainly served the needs of investors in a bull market. John Lorinc explains how the Toronto’s condo market fell to where it is today.
Hard pivot
Vancouver developers find a way to build in a downturn
Renderings of the 69-unit HEM by Vancouver-based boutique developer Hudson Projects.Hudson Projects
Vancouver’s condo market appears dead, with thousands of completed units sitting unsold, and even large, established developers having to cancel projects because the pool of available buyers has dried up. But there are a few in the industry who say they’ve found a way to adapt to a new market reality – and even launch condo presales this year. Chard Development cancelled its 131-unit Earl condo project in Norquay Village last year — the company says it was the first time they had to cancel a project. But as Kerry Gold writes, Chard pivoted the project into a rental building, with government assistance. Here’s how Chard and others are making creative moves to survive in a falling market.
Home of the Week
An architect buys into his own creation at converted abbey
Home of the Week, 385 Brunswick Ave., unit 408, TorontoRaffi Tutundjian/Raffi Tutundjian/Jagged Lens
385 Brunswick Ave., unit 408, Toronto – Full gallery here
In the 1990s, architect Alex Speigel often admired the landmark Loretto Abbey as he cycled past the Edwardian-era building on Brunswick Avenue. The Loretto Abbey Day School had been part of the Annex neighbourhood since 1915, when nuns opened the academy for the education of young girls – some of those nuns then lived in the building when it was converted into housing. Mr. Spiegel was part of the team tasked with the conversion in 2004, and bought a unit on the fourth floor for him and his wife. The thick walls and bay window openings were fixed in place, but Mr. Speigel had free rein when it came to laying out the floor plan. The 2,000-square-foot unit has three bedrooms, a den and three bathrooms. The open plan living area has space for lounging and dining, with the kitchen in the centre, featuring a breakfast bar and a pocket door. Light pours in from three sides, making the whole space feel more like its own house.
Guess the price
d. The asking price is $3,250,000.
Editor’s note: The caption accompanying the photograph of the Alfie condo project has been updated to clarify that the project has been planned since 2022.