The Federal Government of Canada recently announced two new mortgage rules that will help out first-time home buyers. In this article, I share about the new rules and how it could help you during the approval process.
Earlier this year, the Government of Canada announced the option for a 30 year amortization on new builds including condos. Now, they have extended this offering to all first-time home buyers.
The change will help ease the financial burden on the younger generation who are hoping to buy a first home but are struggling to get approved for a mortgage.
A 30 year amortization is the amount of time that your mortgage is spread out over for payments. With a longer amortization, you will see lower monthly payments.
Previously, the standard amortization period was 25 years.
To learn more about amortization lengths, read my article “What is amortization & how to use an amortization calculator?”
The second change that the Government of Canada announced was that they are increasing the CMHC-insured mortgage limit from $1 million to $1.5 million. This 500,000 increase means that buyers can now qualify for a mortgage with less than 20% down on home prices up to $1.5 million.
This change will help buyers access the higher-priced homes, which we all know are more commonly on the market nowadays.
“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
Both of these new changes will come into effect on December 15, 2024.
These are two exciting new changes that will help many of my clients who are in the mortgage process. Curious to know if these changes can help you during your mortgage process? Give me a call at 250-826-3111, apply on my website or contact me through my online contact form to find out.
Let’s get your application off the ground.
