On December 15th, two significant changes to mortgage rules in Canada took effect, aimed at making homeownership more accessible and affordable for Canadians.
- Increased Insured Mortgage Limit: The federal government has raised the price cap for insured mortgages from $1 million to $1.5 million. This change is particularly beneficial for Canadians in high-cost markets like Toronto and Vancouver, where housing prices have been a significant barrier. With this new limit, more buyers can qualify for a mortgage with a down payment of less than 20%, making it easier for them to enter the housing market.
- Expanded Access to 30-Year Amortizations: The eligibility criteria for 30-year mortgage amortizations have been broadened to include all first-time homebuyers and buyers of new builds. This extension is designed to lower monthly mortgage payments, thereby reducing the financial burden on homeowners. By spreading the payments over a longer period, it becomes more feasible for individuals and families to manage their finances while owning a home.
These reforms are part of the government's broader strategy to address housing affordability and accessibility issues across the country. By implementing these changes, the government aims to support Canadians in achieving their homeownership dreams, despite the challenges posed by high real estate prices and economic uncertainties.
