This week: After devastating wildfires, Jasper, Alta., is changing the way it builds new homes. Plus, some Ontario brokerages are taking advantage of a loophole in purchase agreements, and one property worth a look.

Sixteen months after wildfires swallowed a third of the buildings in Jasper, Alta., and 33,000 hectares of surrounding forest, the town is a hive of construction activity. Every day, new building walls spring seemingly out of nowhere. And those new buildings are constructed with resisting future wildfires in mind. The idyllic town once encouraged cedar cladding on homes, but that material was found to have played a role in quickly spreading fire within Jasper’s boundaries. Based on a Firesmart principles, a national program to reduce fire risk and improve community resilience, updated policies mandate the exclusive use of noncombustible materials in building exteriors. Having lost everything to the fire, many Jasperites know the additional costs are well worth it.

Mortgage rates may be entering a relatively idle period in Canada, and the coming gross domestic product report will give further clues to what we can expect from the Bank of Canada’s rate decision next month. Markets and economists largely expect the central bank to keep its key lending rate at 2.25 per cent for the foreseeable future. The BoC itself has signalled that the current rate-cutting cycle could be over if the economy performs as expected. That should keep variable mortgage rates steady for the time being. Meanwhile, as Salmaan Farooqui writes, the Canada five-year bond yield is the biggest driver for determining long term fixed-rate mortgages.

Rates shown are the lowest available for each term/type and category (insured vs. uninsured) as of market close on Thursday, Nov. 28.

A loophole in the laws regulating real estate in Ontario is allowing millions of dollars in interest payments owed to homebuyers to instead be pocketed by brokerage businesses. As Shane Dingman writes, at issue are a few lines of fine print known as the “Schedule B disclosures” in a typical real estate agreement of purchase and sale contract. By provincial law, brokerages are required to tell buyers if the trust account that will hold their deposit, which can range from 2 to 5 per cent of a home’s purchase price, is an account that collects interest, and if so, at what rate.

Ontario’s Trust In Real Estate Services Act states that, “unless otherwise provided by contract,” the interest collected on the deposit money that a brokerage holds in trust accounts belongs to the owner of the deposit. That opens the door to brokerages including language in their contracts that either charge high transaction fees, or set a threshold under which the interest will not be paid to the home buyer. Read more about the loophole here.

5 Thornwood Rd., Toronto, Ont. – Full gallery here

More than 20 years ago, Gillian and Steven Sylvester stood next to a grand house perched on the edge of a ravine in Toronto’s exclusive Rosedale enclave and envisioned a home for their family of five. There was one major challenge to overcome: The house, designed by Eden Smith & Sons in 1908, had been split vertically in the 1960s. Each half belonged to a different owner, and only the rear portion was listed for sale. Finally, they brokered a deal with both owners to take over the whole property. Now, the six-bedroom home features a formal living room with leaded glass windows and a dining room that can accommodate 18 for dinner. Next to the kitchen, they created a comfortable family room with a gas fireplace and French doors opening to a patio. Upstairs is a large primary suite with a sleeping area, a home office and an ensuite bathroom with an oval stand-alone tub and a walk-in shower.