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Are rents in Canada spiralling out of control? While only a handful of cities across the country enjoy modest monthly rents, recent inflation data highlight that rents are growing at the fastest pace in four decades nationwide.

According to Statistics Canada, the annual inflation rate rose 3.1 per cent in November, unchanged from the previous month. Within the consumer price index, there were three noticeable increases: mortgage interest costs (29.8 per cent), rent (7.4 per cent), and food purchased from stores (4.7 per cent). These were the largest contributors to the year-over-year jump in prices.

Economists argue that this is unsustainable for Canadians, particularly for low-income households.

Additionally, they argue that various federal and provincial government subsidies, such as the Canada-Ontario Housing Benefit (COHB), could further support higher rents.

For example, Holly Einboden, a spokesperson for Halton Region, told The Globe and Mail that rents are higher than what is published in the Canada Mortgage and Housing Corporation (CMHC) survey.

“Halton Region has advocated for a higher average market rent to increase the monthly Canada-Ontario Housing Benefit subsidy amount to better support individuals and families with maintaining housing affordability,” she told the newspaper.

Canadian mortgage rates have been in a state of flux for the last year. The pandemic prompted a trio of interest rate drops, bringing the benchmark rate down to 0.25 per cent. This, in turn, resulted in a housing boom that saw many homebuyers stretch their financing to the limit in order to be able to buy a home. Now that the boom has passed and interest rates have bounced to their highest level in 22 years, the focus has shifted to the cost of holding a mortgage, and conversations on whether a variable- or fixed-rate loan is the way to go.

Over the last year, the Bank of Canada (BoC) has been on an inflation-busting crusade by raising interest rates, bringing the benchmark policy rate to five per cent. While the central bank has signalled that it could be ready to put a pause on further rate hikes as it assesses the consumer price index (CPI) and the broader Canadian economy, the current higher rate environment is weighing on homeowners and homebuyers.

How much higher could mortgage rates go anyway? Market analysts have debated, but it might all depend on a few factors. Indeed, in the Canadian housing market, the interest rate behind a mortgage is determined by a couple of aspects that can send it higher or lower. So, for now, everything that is unfolding in the overall economy, financial markets and monetary policymaking apparatus is affecting how much homeowners are paying in interest on their mortgages.

Let’s go into a little more detail about how mortgage rates are set.

How are Canadian Mortgage Rates Determined?

Now, there are two types of mortgages: variable and fixed.

A fixed-rate mortgage is the most popular type of mortgage since it assigns a fixed rate during the term of the loan, meaning that borrowers will only need to focus on a predetermined monthly payment (principal and interest). The mortgage rate for a fixed mortgage is influenced by the central bank bond yields and broader changes in the bond market.

Financial experts purport that the five-year bond can generally provide a glimpse into where fixed rates may be heading. So, if the five-year bond yields are edging higher, fixed rates may emulate this trend. On the other side of the equation, if the five-year bond yields are down, this might signal that fixed rates will fall.

Spring – the flowers are blooming, the birds are chirping, and the “For Sale” signs are sprouting up on lawns all around you. This can be one of the best times to list your home, which also makes it one of the most competitive times.

So, how can sellers stand out in a busy spring market? We asked RE/MAX affiliates across Canada to share their top tips.

Heading into 2024, home improvement trends are sharply focused on combining practicality, eco-friendliness, and technological innovation. This guide will highlight key trends, including energy-saving appliances, sustainable materials, and smart home technology for better security and ease of use. We’ll also cover versatile design ideas for multifunctional areas and wellness spaces tailored to the modern homeowner’s needs. These trends aim to create homes that are visually appealing, versatile, efficient, and in tune with individual lifestyles.

Eco-Friendly and Sustainable Designs

Eco-friendly and sustainable designs will be at the forefront of home improvement trends, emphasizing both environmental responsibility and long-term cost efficiency. This includes the installation of solar panels and the creation of green roofs, which offer energy savings and environmental benefits. Homeowners are also increasingly opting for energy-efficient appliances and LED lighting to reduce electricity usage. Sustainable building materials, such as bamboo flooring and recycled glass countertops, are gaining popularity for their eco-friendliness and unique aesthetics. Water conservation is a key focus, with the adoption of low-flow fixtures and systems for rainwater harvesting and greywater recycling becoming more common. These trends contribute to a greener planet and enhance the value and functionality of homes.

Winter might seem like an unusual time to undertake a renovation, but with the right knowledge and a bit of preparation, it can be a great time to add value to your home.

The secret to a successful winter renovation is good planning and working closely with your renovator, says RenoMark renovator Sam Lapidus. Talking to your renovator in advance about potential challenges can help you save time and money in the long run. Snow and cold weather are two of the biggest factors that can hamper a winter renovation, and they require precautionary measures so nothing’s left to chance.

Major renovations often require you to vacate your home for a few weeks. To ensure that your contractor has easy access to and from your home, arrange for snow shovelling and salting of steps and walkways in your absence. Some renovation companies may offer the service for an additional cost, so ask about this in advance and ensure that it’s included in your renovation contract.

Home-buying activity continues at a frenzied pace in the Calgary housing market, as affordable housing values and lower tax rates incentivize an increasing number of out-of-province buyers to move to Alberta, according to RE/MAX Canada’s 2024 Tax Report. In the first three quarters of 2023, the province welcomed just over 45,000 interprovincial residents, according to the Statistics Canada Quarterly Demographic Estimates: Provinces and Territories Interactive Dashboard. During the same period, net international migration rose by almost 100,000 people, including new immigrants, net emigration, and net non-permanent residents.

Buyers from Ontario and BC remain most active in the Calgary housing market, with the vast majority settling in the City of Calgary where the average price at year end 2023 hovered at $539,313, according to the Calgary Real Estate Board. Ownership can be attained for as low as $350,000, with the condominium apartment category seeing the highest year-over-year increase in sales in 2023. Younger buyers as well as retirees and investors are behind the push for housing. Tight market conditions persist throughout the city, however, with local buyers vying for prime properties with cash-rich purchasers from Ontario and British Columbia.

This year, mortgage interest rates will be the talk of the Canadian real estate market. After the conventional five-year fixed-rate mortgage remained above six per cent for four consecutive months in November, a lot has occurred in the world of interest rates. And these trends could begin saving prospective homebuyers some money.

After the Federal Reserve signalled three rate cuts in 2024 at the December Federal Open Market Committee (FOMC) policy meeting, Canadian investors immediately looked at the Bank of Canada to determine what the monetary policymakers would do this year.

However, economists and market analysts recommend investors and other observers not monitor what the U.S. central bank is doing. The BoC has its own path laid out, they say.