The Government of Canada has announced significant mortgage reforms that could transform the housing market, making homeownership more attainable for Canadians. Key changes include:
Increasing the Insured Mortgage Cap: Starting December 15, 2024, the cap for insured mortgages will rise from $1 million to $1.5 million, the first increase since 2012. This adjustment aligns with today’s housing prices, allowing more Canadians to qualify for a mortgage with less than a 20% down payment.
Expanding 30-Year Amortization: First-time homebuyers and purchasers of new builds will soon be eligible for 30-year amortizations on insured mortgages, up from the current 25-year limit, starting December 15, 2024. This change aims to lower monthly mortgage payments and encourage new housing construction to address the housing shortage.
These reforms follow earlier initiatives from this year, including:
RRSP Home Buyer’s Plan Expansion: The withdrawal limit was increased from $35,000 to $60,000, giving Canadians more flexibility to use their savings toward home purchases.
Permanent Amortization Relief: This measure offers ongoing support to existing homeowners facing rising mortgage payments.
While more details are expected, these reforms aim to create new opportunities for Canadians to achieve homeownership. Whether you’re a first-time buyer, planning a move, or renewing your mortgage, now is an ideal time to review your options. Contact us today for a free, no-obligation consultation.