This week, the federal government announced several positive changes to mortgage rules. The measures are intended to make mortgages more affordable for Canadians and put homeownership within reach. These changes are the most significant mortgage updates in decades.
“Everyone deserves a safe and affordable place to call home, and these mortgage measures will go a long way in helping Canadians looking to buy their first home.” -The Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities
30 Year Amortizations
30 year amortizations will be offered to all first-time home buyers purchasing any property, effective December 15, 2024. This will reduce the cost of monthly mortgage payments and help more Canadians buy a home.
On August 1, 2024, 30-year mortgage amortizations were permitted for first-time homebuyers purchasing new builds, including condos. By helping Canadians buy new builds, the intent was to incentivize more new housing construction and tackle the housing shortage. Now, the 30 year amortization is extended to all types of purchases for first-time home buyers.
$1.5 Million Price Cap for Insured Mortgages
The next change is increasing the $1 million price cap for insured mortgages to $1.5 million, effective December 15, 2024. Increasing the insured mortgage cap, which has not been adjusted since 2012, will help more Canadians buy homes in more expensive housing markets across Canada. This will help them qualify for a mortgage when they do not have a 20% down payment.
The government will announce further details in the coming weeks. I will make sure to keep you up to date on this information to help navigate you into a new home!
If you’re a first-time home buyer pre-approved for a mortgage and want to explore the option of switching your pre-approval to a 30-year amortization for increased buying power, I can help you. I’ll walk you through the benefits and any potential impacts on your payments, ensuring you make the best decision for your financial situation. Let’s discuss how this change could help you secure your ideal home!