Recently, the Canadian government has introduced several major changes to mortgage regulations, with the goal of improving access to homeownership. These changes, which will be fully implemented by December 15, 2024, are designed to address issues in the current system, offering new options for homebuyers, particularly first-time buyers and those interested in purchasing new builds.
Key Dates and Changes
August 1, 2024: 30-year insured mortgage amortizations became available for first-time homebuyers purchasing new builds.
September 16, 2024: Further mortgage reforms were announced, with full details provided on September 24, 2024.
September 25, 2024: Uninsurable mortgage switches will no longer be subject to the stress test starting November 21, 2024.
December 15, 2024: New rules come into effect, including a higher price cap and expanded eligibility for 30-year amortizations.
Challenges in High-Cost Markets
Previously, the $1 million cap on insured mortgages made it difficult for buyers in expensive cities like Toronto and Vancouver, as they often needed to put down 20% or more to qualify for a mortgage.
The Solution: The government is raising the insured mortgage price cap to $1.5 million, allowing more buyers to qualify with a smaller down payment, potentially as low as 5% for a portion of the home’s purchase price.
By keeping these dates and updates in mind, you can better navigate the evolving mortgage landscape and make informed decisions when purchasing a home.
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