Big News for First Time Homebuyers!

Dec 16

Homeownership is becoming more accessible for Canadians! Starting December 15, 2024, key updates to high-ratio insured mortgage policies came into effect. These changes, inspired by the federal government’s expanded eligibility criteria, are designed to help more people achieve their dream of owning a home. Here’s what you need to know:

1. Extended Amortization Options

Eligible borrowers may now qualify for a maximum 30-year amortization period. This update aims to make monthly payments more manageable for those who qualify.

Who Qualifies?

First-Time Homebuyers
Borrowers Purchasing a New Build Property

Additional Requirements:

The property must be owner-occupied or occupied by a family member on a rent-free basis.

Who Is Considered a First-Time Homebuyer?

A borrower who has never purchased a home before.
A borrower who has not occupied a home they or their spouse/common-law partner owned in the last four years.
A borrower who recently experienced the breakdown of a marriage or common-law partnership.

2. Increased Maximum Property Value

The maximum purchase price for high-ratio insured mortgages is increasing to $1,499,999.

Down Payment Requirements:

5% down payment on the portion of the purchase price up to $500,000.
10% down payment on the portion of the purchase price between $500,000 and $1,499,999.

This increase allows borrowers to explore a wider range of homes while still benefiting from high-ratio mortgage insurance.

How These Changes Benefit Canadian Homebuyers

Affordability: Extended amortization options reduce monthly payments, making homeownership more attainable.
Flexibility: Higher maximum purchase prices allow more Canadians to find a home that suits their needs, even in competitive markets.
Inclusivity: Expanded eligibility criteria ensure that a broader range of borrowers can benefit, including those facing life changes such as the end of a marriage.

Ready to Take Advantage of These Updates?

If you’re planning to buy a home or considering your options, now is the perfect time to explore how these changes can work for you. Let’s discuss your goals and find the best mortgage solution tailored to your needs.

💬 Have questions? Reach out today to learn more about these updates and how they could benefit you.