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Exciting Changes to Canada’s Mortgage Rules: What You Need to Know if You’re a First-Time Homebuyer
Homeownership is about to get a little easier for first-time buyers across Canada. In a recent announcement, Finance Minister Chrystia Freeland revealed two major reforms to mortgage rules, set to roll out this December. These changes are designed to make purchasing a home more accessible, especially for younger buyers who have struggled to enter the housing market.
Here’s what’s coming:
1. Increased Price Cap for Insured Mortgages
Starting December 15, 2024, the price cap for insured mortgages will increase from $1 million to $1.5 million. Previously, homes priced over $1 million required a minimum 20% down payment, as they weren’t eligible for mortgage default insurance. By raising the price cap, buyers in markets where prices have seemed just out of reach—like the Niagara Region—will now find it easier to afford homes with a lower down payment. This change makes higher-priced properties more accessible, helping buyers to enter what has felt like a challenging market.
2. Expanded Eligibility for 30-Year Amortizations
Another significant change is the expansion of 30-year mortgage amortizations. Previously, only first-time buyers purchasing newly built homes could stretch their mortgage payments over 30 years. This option is now being extended to all first-time homebuyers and all buyers of new builds. Extending amortization periods will reduce monthly mortgage payments, providing more financial flexibility and increasing the number of buyers who can qualify for a mortgage.
What Does This Mean for Buyers in the Niagara Region?
If you’ve been holding off on buying a home because of high down payments or steep monthly payments, now might be the perfect time to reconsider. These reforms, coming into effect on December 15, could be the opportunity you’ve been waiting for. With the new rules, homes that once felt out of reach may now fit your budget.
Don’t wait to explore your options! If you’re thinking about purchasing a home in the Niagara Region, now is the time to reach out and give me a call or get in touch with your trusted mortgage broker to start planning your next steps.
Homeownership could be closer than you think!
