30 Year Amortizations for First-Time Home Buyers

30 Year Amortizations for First-Time Home Buyers

The government has announced some new changes to mortgage rules that will help first-time home buyers. 30 Year amortizations are returning for first-time home buyers – with a few strings attached.

Finance Minister Chrystia Freeland said the change takes effect August 1, 2024. Insured extended amortizations will be available to first-time buyers purchasing new construction only.

“Faced with a shortage of housing options and increasingly high rent and home prices, younger Canadians understandably feel like the deck is stacked against them,” Freeland said in a news release.

It’s unclear at this time what the definition of “new construction” is. In the near future, we will ensure first-time home buyers know what types of new builds qualify for the 30 year amortizations.

Here’s some more good news for first-time homebuyers. The government is significantly increasing the amount you can withdraw from your RRSPs to buy a home. The limit is set to rise from $35,000 to almost doubling to $60,000, effective April 16, 2024.

Those who withdraw their RRSP under the Home Buyers’ Plan between January 1, 2022, and December 31, 2025, also get more time to begin repayment, up to five years rather than two.

The government is eager to help first-time home buyers purchase a home. Between introducing 30 year amortizations on new construction homes and increasing the withdrawal limit of RRSPs under the Home Buyers’ Plan, hopefully, these changes will help first-time home buyers get into a new home.

Back to the Blog Index



Leave a Reply

Your email address will not be published. Required fields are marked *

For security, use of Google's reCAPTCHA service is required which is subject to the Google Privacy Policy and Terms of Use.