Investor dominance in Ontario real estate and the Home of the Week: Canadian real estate news for March 23

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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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Banks to face new limits on mortgage loans above 4.5 times a homebuyer’s annual income

The Office of the Superintendent of Financial Institutions is capping the number of highly leveraged loans in the banks’ residential mortgage portfolios, instructing lenders they will have to limit the number of mortgages that exceed 4.5 times the borrower’s annual income, write James Bradshaw, Rachelle Younglai and Stefanie Marotta. The new income limit, which is expected to take effect in the first quarter of next year, comes on top of existing mortgage qualification rules. In markets like Toronto and Vancouver, prospective homebuyers often have to borrow more than 4.5 times their income to buy a property.

Investors own 23.7 per cent of Ontario homes, report says

A new report has found that owners of multiple properties remain the drivers of real estate purchasing in Ontario, surpassing first-time home buyers and homeowners moving to a new property, writes Shane Dingman. According to Teranet’s Market Insight Report, the multiowner share of the market slipped in 2023 to 23.7 per cent from 25.2 per cent the year before, but that’s still enough to remain on top. Most of these investors owned only two properties, but 7.6 per cent owned 11 or more homes. Realtors have said that some of these super investors are now listing their surplus properties, citing a rise in mortgage rates.

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Rob Carrick: As the spring home buying season begins, what’s the outlook for mortgage rates?

People are often fascinated by the stock market, but the bond market has more of an influence on your daily life, especially if you’re renewing a mortgage or plan to buy a home, writes Globe personal finance columnist Rob Carrick. If you want clues as to where mortgage rates are going, check what’s happening with bonds. Right now, bonds are telling us that financial markets are as confused about inflation and the path ahead for interest rates as everyone else. Without a complete collapse of inflation, don’t expect to see 3 per cent five-year mortgage rates any time soon.

Home of the week: A Jerome Markson mid-century modern original

79 Amelia St., Hamilton

The five-bedroom home in Hamilton is one of three homes on the street designed by Toronto architect Jerome Markson, for his relatives Malcolm and Sondi Goldblatt in 1957. The “Goldblatt II” — the first Goldblatt home was built up the street a few years earlier — saw several renovations to the exterior over the years, but the interior of the home still retains a lot of its mid-century modern style. You enter the home through a large iron gate and into a courtyard that was originally landscaped by Japanese-Canadian designer George Tanaka. Once inside, every room is bathed in light.