In September 2024, Ottawa released an announcement that would help Canadians afford a home. Canadians work hard to afford homes, however high costs of mortgages can be a barrier for some.I
In August, rules changed for First Time Home Buyers that would allow them to hold 30 year amortizations when purchasing a new home.
In September more news came to help all Canadians looking to purchase a home. A suite of reforms to mortgage rules to make mortgages more affordable for Canadians and put homeownership within reach:
- Increasing the $1 million price cap for insured mortgages to $1.5 million, effective December 15, 2024, Canadians looking qualify for a mortgage with a downpayment below 20 per cent will be able to borrow at a price cap of $1.5 million. Increasing the insured-mortgage cap—which has not been adjusted since 2012—to $1.5 million will help more Canadians buy a home. This will help many professionals and families who are not able to put down such a large down payment.
- Expanding eligibility for 30 year mortgage amortizations to all first-time homebuyers and to all buyers of new builds, effective December 15, 2024, to reduce the cost of monthly mortgage payments they are allowing all buyers of new builds, including condos to hold 30 year mortgage amortizations.
These new measures build on the strengthenedCanadian Mortgage Charter¸ announced in Budget 2024, which allows all insured mortgage holders to switch lenders at renewal without being subject to another mortgage stress test. Not having to requalify when renewing with a different lender increases mortgage competition and enables more Canadians, with insured mortgages, to switch to the best, cheapest deal.