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7 Colchester Court, TorontoHeaps Estrin Real Estate Team
This week: The Liberal government has released their latest budget, putting billions towards building new homes. Plus, the housing market adjusts after the Bank of Canada’s rate hike, and experts weigh in on the practicality of home-built saunas.
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Federal budget
Ottawa adds $13-billion in new capital to build new homes
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Prime Minister Mark Carney and Finance and National Revenue Minister Francois-Philippe Champagne are seen on Parliament Hill before the federal budget in Ottawa, Thursday, Nov.5, 2026.Adrian Wyld/The Canadian Press
On Nov. 5, Prime Minister Mark Carney’s Liberal government tabled its second federal budget. Over the five-year horizon, net new spending will amount to $151.5-billion, spread across a variety of initiatives, including boosting Canada’s housing supply.
Ottawa said it would add $13-billion in new capital over ten years on a cash basis to Build Canada Homes, an agency it launched in September 2025 to accelerate home construction. That would bring its total capital to $45-billion, and the government said the new investment would set the agency “on a path” to build 200,000 new homes across Canada over the next decade.
Ottawa said it would also spend $1.5-billion over four years, starting in 2027-2028, and $387.4-million in subsequent years to ready federal land for new housing projects.
At the same time, the government said it would introduce legislation to extend a ban on foreign residential property purchases to January 1, 2029. The restrictions had been set to expire this coming January.
From business investment to increasing the debt, read the highlights from the budget.
Interest rates
Is a variable mortgage rate still worth considering after the Bank of Canada’s rate hike?
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A row of residential for sale signs lines a street in northeast Calgary in July.Amir Salehi/The Globe and Mail
Variable-rate mortgages were having a moment – until the Bank of Canada raised its trendsetting interest rate last week, citing concerns about high oil prices.
Canadians had been flocking to variable rates over the past few months as turmoil in the bond market pushed up fixed mortgage rates. Nearly half of consumers taking out or renewing a mortgage in 2026 signed up for a variable one, as of September, compared to less than 10 per cent who did so in 2024, according to data from National Bank of Canada.
But, as Mariya Postelnyak writes, the BoC’s rate hike had variable rates inching up a notch last week. The potential of a few more hikes in the coming months has left mortgage shoppers wondering whether a variable rate is still worth it.
The answer hinges on a number of variables, including risk tolerance, the availability of financial buffer room, and whether the borrowers are first-time homebuyers or more experienced homeowners. But experts say going variable might still turn out to be the cheaper option for many mortgage shoppers, especially for those choosing longer terms.
Home Run
With a budget of $550,000, what home did this Red Deer couple buy?
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Jordanna and Derek laugh on their back porch in Red Deer, Alta., last month.Amanda Erickson/The Globe and Mail
Derek and Jordanna Gibeault first met in 2017, but it wasn’t until 2023 that they reconnected and began dating. By May, 2023, Jordanna, a realtor, purchased a five-bedroom, three-bathroom semi-detached home in Red Deer, Alta., for $330,000.
While the home had a spacious interior, the couple thought about buying a detached home together one day, with more storage and better exterior spaces, including a bigger backyard and a larger garage. They began to consider what they could afford and what they wanted out of their new home, given a budget of around $550,000.
The couple wanted at least four bedrooms so that they could have personal office spaces, host visiting family, and convert one bedroom into a gym. A larger private backyard space was also a must-have, not only for their two large dogs – a mixed breed named Crue and a black lab named Tikka – but also for themselves.
From a home in Southeast Red Deer with a loft space above the garage, a five-bedroom bungalow with a spacious yard and a split-level home in Deer Park, find out which property the couple decided to buy.
This week’s lowest fixed and variable mortgage rates in Canada
Rates shown are the lowest available for each term/type and category (insured vs. uninsured) as of market close on Thursday, Nov. 5.
The next move
Home buyers and home sellers ride a wave of uncertainty in the GTA
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New condo buildings under construction by the Vaughan Metropolitan Centre in Ontario.Sammy Kogan/The Globe and Mail
Market watchers in many tranches of Toronto real estate are detecting a palpable fear of commitment this fall: Buyers are reluctant to submit a bid and sellers are balking at making a counter-offer.
As Carolyn Ireland writes, steady activity in the first half of October became quieter in the second half as consumers watched the lead-up to U.S. midterm elections and waited for more clarity on tariffs, interest rates and Canada’s economy.
The Bank of Canada’s rate hike has many consumers fretting about their own budgets and economists predicting a slow grind towards the end of the year in the Greater Toronto Area.
As for potential buyers, they are trying to gauge how much farther home prices have to fall and whether the potential for a lower price offsets the risk of higher rates. Realtors share how buyers and sellers might come to a deal in these times.
Design corner
Are at-home saunas worth the sweat? Experts weigh the pros and cons
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Building a home sauna can be tricky, and location is everything.Hannes Niederkofler/Supplied
Studies show saunas can reduce stress, soothe sore muscles, relieve pain and improve heart health. Some research suggests they could also lower the risk of dementia. But, Matthew Hague writes, are those benefits worth the sweat and headache of a home installation?
Building a home sauna can be tricky. For starters, there are several different kinds to consider: wood burning, electric and infrared. Placement is up for debate, too. Common options include basements, backyards, bathrooms or even bedrooms.
According to Alan Jalasjaa, who hosts a sauna podcast and serves as Canada’s Sauna Ambassador, at-home saunas tend to have lower ceilings compared to commercial ones, which help keep the heat on you.
One sauna designer said the best place to install a home sauna is the backyard. Basements and ensuites can also work, but it’s vital to ensure proper insulation and drainage to avoid mould.
Home of the Week
A design-forward house in Toronto with a four-season pool
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The house at 7 Colchester Court in Toronto features a double-height living area with soaring 28-foot ceilings.Heaps Estrin Real Estate Team
7 Colchester Court, Toronto – Full gallery here
Elena Stavreska was mother to a toddler, with another baby on the way, when she and her husband decided to move from their King Street West penthouse to the Edenbridge area in suburban Etobicoke – full of winding streets, expansive lots and plenty of parkland along the Humber River.
When thinking about renovations to the modern two-storey dwelling, the couple aimed to create a more calming interior and a tranquil backyard retreat.
On the main level, the foyer opens to a double-height living area with a ceiling height of 28 feet. Stairs lead to a raised dining area with temperature-controlled wine storage. The kitchen has custom cabinetry, integrated appliances, a geometric island and a breakfast bar.
Upstairs, the primary suite has floor-to-ceiling windows in the sleeping area, a bathroom with a double vanity and stand-alone tub, and a large walk-in closet. Four additional bedrooms on that floor each have ensuite bathrooms and built-in cabinets.
Outside, the couple built an in-ground pool and integrated hot tub, surrounded by 5,500 square feet of heated patios and walkways. The pool is heated year-round, in an effort to prolong the short Canadian summers.
What do you think is the asking price for the property?
a. $5,999,000
b. $6,745,000
c. $8,299,000
d. $10,449,000
b. The asking price is $6,745,000.