As of December 15, 2024, the Canadian government has introduced significant updates to insured mortgage rules, opening new doors for homebuyers across the country. These changes aim to improve affordability and accessibility, especially for first-time buyers and those in high-priced housing markets. Here’s what you need to know:
30-Year Amortizations for First-Time Buyers
First-time homebuyers can now access insured mortgages with amortization periods of up to 30 years. This extension reduces monthly mortgage payments, making homeownership more attainable for Canadians. Additionally, buyers purchasing newly constructed homes are also eligible for this extended amortization period.
Higher Property Value Cap
The maximum property value eligible for an insured mortgage has increased from $1 million to $1.5 million. This adjustment provides much-needed relief in cities where property prices have soared, ensuring more buyers qualify for insured mortgages with lower down payments.
Updated Down Payment Structure
For properties valued up to $1.5 million, the minimum down payment remains:
- 5% on the first $500,000
- 10% on the portion of the purchase price between $500,000 and $1.5 million
These rates help buyers secure homes with manageable upfront costs.
Insurance Premium Adjustments
While the longer amortization offers financial flexibility, it’s worth noting that mortgage insurance premiums for 30-year terms may be slightly higher, increasing by approximately 0.20%. Buyers should consult with mortgage professionals to assess their options.
These changes reflect a commitment to supporting Canadians on their homeownership journey. Whether you’re a first-time buyer or looking to move into a newly constructed home, these updates could make your dream home a reality.
At Dominion Lending Centres, we’re here to guide you through these changes and find the mortgage solution that fits your needs. Contact us today to explore your options!