Today, we’re thrilled to share some exciting news that marks a significant step forward for the Canadian housing market. The Deputy Prime Minister and Minister of Finance, Chrystia Freeland, has announced important changes to the mortgage regulations—many of which reflect the continued efforts of Mortgage Professionals across Canada.
These updates include several measures designed to make homeownership more accessible:
- Increase in the Insured Mortgage Cap: The government will raise the price cap from $1 million to $1.5 million, recognizing the realities of today’s housing prices. Effective December 15, 2024, this will help more Canadians, especially first-time buyers, qualify for insured mortgages.
- Expanded Access to 30-Year Amortizations: For the first time, all first-time homebuyers and those purchasing new builds will be eligible for 30-year amortizations, easing monthly payments and making homeownership more achievable.
- Enhanced Mortgage Competition: New rules will allow insured mortgage holders to switch lenders at renewal without having to undergo another stress test. This change will promote competition and help Canadians secure better mortgage rates and terms.
These updates reflect the dedication of mortgage professionals in advocating for more flexibility and opportunities for buyers across the country. It’s a win for not only first-time homebuyers but also for anyone looking to enter or remain in the housing market.
Looking ahead, we’ll continue working to ensure further positive developments in the mortgage industry, including advocating for 30-year amortizations to apply across all homes, not just new builds.
