The Government of Canada has just announced new mortgage reforms that could reshape
the housing landscape. In a major move that aims to make homeownership more
accessible to Canadians, the new reforms introduced include:
- Increasing the Insured-Mortgage Cap: Effective December 15, 2024, the cap for
insured mortgages will rise from $1 million to $1.5 million. This adjustment, the first
since 2012, better reflects today’s housing market and will allow more Canadians to
qualify for a mortgage with a down payment of less than 20%. - Expanding 30-Year Amortization: First-time homebuyers and buyers of new builds
will now be eligible for 30-year mortgage amortizations on insured mortgages,
previously capped at 25-years, starting December 15, 2024. This extension aims to
reduce monthly mortgage costs and incentivize new housing construction to tackle
the ongoing housing shortage.
These reforms build on initiatives from earlier this year, including:
- RRSP Home Buyer’s Plan: The limit was increased from $35,000 to $60,000 to give
Canadians more flexibility in leveraging their savings for home purchases. - Permanent Amortization Relief: This measure provides long-term support for
existing homeowners facing rising mortgage payments.
While more details are to come, these initiatives intend to help shape a new path for
Canadians to achieve homeownership. Whether you’re a first-time buyer, considering a
move, or preparing for a mortgage renewal, now is a great time to explore your options.
Let’s discuss how these reforms could impact your plans. Reach out today for a free, no obligation
consultation.
Kelly MioBertolo
Mortgage Agent Level 2
Tel: (647) 745-2311
Email: kmiobertolo@mortgagealliance.com
Web: https://www.mortgagealliance.com/KellyMioBertolo
