{"id":85401,"date":"2026-06-12T13:06:06","date_gmt":"2026-06-12T13:06:06","guid":{"rendered":"https:\/\/www.europesays.com\/canada\/85401\/"},"modified":"2026-06-12T13:06:06","modified_gmt":"2026-06-12T13:06:06","slug":"bank-of-canadas-steady-interest-rate-adds-to-mortgage-uncertainty-and-the-home-of-the-week-canadian-real-estate-news-for-the-week-of-june-12","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/canada\/85401\/","title":{"rendered":"Bank of Canada\u2019s steady interest rate adds to mortgage uncertainty and the Home of the Week: Canadian real estate news for the week of June 12"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

The Home of the Week is a Gambier Island escape that still keeps you close to Vancouver.Alena Machinskaia\/Alena Machinskaia\/InFrame Films<\/p>\n

This week: Another steady interest rate brings more mortgage uncertainty and the loan trouble brewing for more Toronto homeowners. Plus, why AI can\u2019t be trusted to write a will about who inherits your home, and one property worth a look.<\/p>\n

Take our business and investing news quiz<\/a><\/p>\n

Interest rateWhat the BoC\u2019s decision and our \u2018anything could happen\u2019 rate future means for your mortgage<\/p>\n

The Bank of Canada held the interest rate steady at 2.25 per cent<\/a> this week for the fifth straight time, but homeowners and buyers can\u2019t bet on the status quo. As Erica Alini reports<\/a>, governor Tiff Macklem made it clear every option is on the table in the coming months, from rate hikes to holds and cuts.<\/p>\n

\u201cIf high oil prices tied to the Iran war start to translate into broader inflation, the central bank signalled it\u2019s prepared to hike,\u201d Erica wrote. \u201cIf trade tensions with the U.S. worsen and the Canadian economy weakens further, it may decide to cut rates to stimulate growth. On the other hand, if inflation pressure remains limited to the energy sector and trade negotiations keep muddling, expect more rate holds.\u201d<\/p>\n

The mixed signals make it hard to know which outcome is more likely, and as Rachelle Younglai notes<\/a>, the rate uncertainty is likely still keeping many would-be buyers on the sidelines. But there are things you can do to insulate yourself from the most volatile shocks when renewing or taking out a mortgage. Fixed or variable, here is Erica\u2019s advice for mortgage shopping with the markets in turmoil<\/a>.<\/p>\n

Estate planningShould you let AI help with your will? Homeowners, be carefulOpen this photo in gallery:<\/a><\/p>\n

AI chatbots can help with basic estate planning research, but using them to write your will is a recipe for added grief.useng\/iStockPhoto \/ Getty Images<\/p>\n

Who gets your home when you die? If you want your will to be clear, don\u2019t let AI write it for you<\/a>. More and more people are turning to platforms like ChatGPT to help with their estate planning, and as Zarif Sinha was surprised to learn, estate lawyers are optimistic about it \u2013 \u201cespecially about how it could help clients better understand their needs before meeting a lawyer,\u201d he told me.<\/p>\n

But using AI chatbots to entirely replace lawyers in the tricky process of will-writing could cause more grief down the road, particularly for homeowners. In a recent experiment, Hannah Solmon, an estates litigator with Scion Law LLP in Vancouver, asked ChatGPT and Microsoft Copilot to draft a will for a scenario similar to a recent court battle in Ontario. Both of them failed to use precise-enough language about the home to avoid the ambiguity at the centre of Mansour v. Girgis<\/a>, which locked the estate and deceased\u2019s siblings in a 12-year dispute.<\/p>\n

So while AI can help with basic research, make sure you\u2019re talking to a lawyer before signing anything<\/a>. \u201cThe last thing anyone wants is go through a lengthy lawsuit over a house or property when they\u2019re also grieving the loss of a loved one,\u201d Zarif said. Too true, and it\u2019s why, even if the technology improves by the time Zarif is ready to plan his estate, he says he\u2019ll still be talking to a lawyer.<\/p>\n

This week\u2019s lowest fixed and variable mortgage rates in Canada<\/p>\n

Rates shown are the lowest available for each term\/type and category (insured vs. uninsured) as of market close on Thursday, June 11<\/a>.<\/p>\n

Mortgage stressNearly 1 in 10 Toronto mortgage-holders won\u2019t be able to refinance next year, BoC saysOpen this photo in gallery:<\/a><\/p>\n

Homeowners in the Toronto area are defaulting on their mortgages at a faster than across the country, and depressed home values could mean more missed payments are ahead.Melissa Tait\/The Globe and Mail<\/p>\n

Depressed home values in Toronto aren\u2019t just a problem for homeowners looking to sell. If they remain at current levels, 9 per cent of mortgage-holders in the area won\u2019t be able to refinance<\/a> or renew their loans with a new lender in 2027, the Bank of Canada estimated in a new report. As Rachelle Younglai reports, that\u2019s more than double the estimated national rate of four per cent.<\/p>\n

Home prices have been declining for the last four years, and the Toronto region has seen some of the steepest drops. The typical home price is 33 per cent below the peak in March, 2022, and those who took out a five-year mortgage will have to renew next year at a higher rate, one the BoC has warned could climb even higher.<\/p>\n

And as homeowners in Toronto default on their mortgages at a faster pace than the rest of the county, more missed payments lie ahead if values don\u2019t increase, according to the BoC. The loan-to-value ratio, a key lending metric, has worsened for those borrowers whose homes are now worth less than when they bought them. Any ratio above 80 per cent is considered risky, and those in the higher range won\u2019t have the option to refinance by taking equity out to pay off some of their debts, lengthening the term of the mortgage or simply renewing with a different lender. Read the full story about the BoC\u2019s estimates here<\/a>.<\/p>\n

Design cornerThe Canadian roots of the chair on every patio \u2013 and three elevated alternativesOpen this photo in gallery:<\/a><\/p>\n

The monobloc chair is ubiquitous around the world, but there are other Canadian options that are less of an eye sore.PATRICK T. FALLON\/AFP\/Getty Images<\/p>\n

You know those white plastic chairs you see on restaurant patios, outdoor weddings and even on stage with Bad Bunny at the Super Bowl? Even if you didn\u2019t know they were called \u201cmonobloc chairs,\u201d you\u2019ve almost certainly sat in one. They\u2019re a Canadian invention, and as Matthew Hague writes<\/a>, several twists of fate have made them \u201cthe most widely used piece of furniture in the world,\u201d according to Germany\u2019s Vitra Design Museum.<\/p>\n

The name refers to how they are built from one continuous piece of plastic, and their convenience and cost-effectiveness has made them ubiquitous. But they\u2019ve also drawn controversy for being uncomfortable and a bit of an eyesore. So if you\u2019re looking for a versatile outdoor chair that\u2019s also chic, check out these three Canadian-made monobloc alternatives<\/a> for your backyard or patio.<\/p>\n

Home of the WeekA slice of B.C.\u2019s island life close to the cityOpen this photo in gallery:<\/a><\/p>\n

This recreational property at the mouth of Howe Sound was built to bring the outside in.Alena Machinskaia\/Alena Machinskaia\/InFrame Films<\/p>\n

671 Bowen View Rd., Gambier Island, B.C. \u2013 Full gallery here<\/a><\/p>\n

This modern coastal escape seems to grow directly out of Gambier Island\u2019s bedrock, but the tide had to be right \u2013 literally \u2013 in order to build it. With no boat ramp on the island, trucks instead rolled off barges, across rocky beaches and up an old logging road late at night to deliver materials to the property before the tide came back in. \u201cIt was an extreme labour of love,\u201d said owner Todd Elyzen.<\/p>\n

At the mouth of Howe Sound, Gambier\u2019s proximity to the mainland \u2013 12 minutes by boat \u2013 and Vancouver helped make the midnight supply runs well worth it. The three-bedroom, two-bathroom recreational home is built to bring the outside water and forests in<\/a>, from Douglas fir floors and hemlock ceiling panels to massive windows and sliding doors that open up to the water beyond. If you stand at the primary bedroom in the rear, you can see all the way through the 2,000-square-foot home and out to the ocean. <\/p>\n

And if you\u2019re out on the south-facing deck, don\u2019t be surprised if you spot sea lions or killer whales surfacing out in the waves. A trove of swimming and hiking spots are also nearby, and everything is close enough to make it home to the mainland in time for dinner. \u201cHaving the privilege to be this close to nature, this close to a major city, is something I never take for granted,\u201d Elyzen said.<\/p>\n

\n What do you think is the asking price for the property?\n <\/p>\n

a. $2,575,000<\/p>\n

b. $2,850,000<\/p>\n

c. $2,975,000<\/p>\n

d. $3,150,000<\/p>\n

\n b. The asking price is $2,850,000.\n <\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: The Home of the Week is a Gambier Island escape that still keeps…\n","protected":false},"author":2,"featured_media":85402,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[3128,902,903,904,17,1637,484,16124,137,906],"class_list":["post-85401","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-ac-community","tag-aud-growth","tag-aud-headline","tag-aud-url","tag-canada","tag-newnewsletter","tag-noastack","tag-realestate-roundup","tag-yesapplenews","tag-yessnap"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/85401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/comments?post=85401"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/85401\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media\/85402"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media?parent=85401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/categories?post=85401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/tags?post=85401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}