Exciting news for Canadians preparing to enter the housing market! Starting December 15, 2024, significant changes to insured mortgage rules will take effect, making homeownership more accessible and affordable. Here’s what’s new and how it could impact your plans.
What’s Changing?
1. Higher Insured Mortgage Cap
The insured mortgage cap will increase from $1 million to $1.5 million, opening doors for buyers in higher-priced markets to qualify for insured mortgages with less than a 20% down payment. This change gives buyers more flexibility and access to affordable financing options in today’s competitive housing market.
2. Expanded Access to 30-Year Amortizations
Previously limited to first-time buyers of newly built homes, 30-year amortizations will now be available to:
All first-time homebuyers
Anyone purchasing newly built homes
Longer amortization periods mean lower monthly payments, helping buyers manage housing costs while still securing the home they want.
Why Does This Matter?
These changes aim to address affordability challenges faced by Canadians trying to enter the housing market. Key benefits include:
Lower monthly payments: A longer amortization period reduces payment amounts, easing budget pressures.
Lower interest rates: Insured mortgages often come with more competitive rates, further reducing borrowing costs.
More opportunities: The increased cap allows buyers in pricier markets to qualify for financing that was previously out of reach
How Can You Prepare?
If you’re thinking about buying a home—whether it’s your first home or a newly built property—this is the perfect time to start planning. Here’s how to get ready:
Assess your budget: Understand how these changes could impact your buying power.
Get pre-approved: Secure your financing early to be ready when the right home comes along.
Explore your options: Work with a mortgage professional to find the best solutions for your needs.
Let’s chat about how these upcoming changes can help you achieve your homeownership goals. Contact us today for a personalized consultation!
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.