Exciting News to Help Homebuyers and Those up For Renewal Annouced This Morning,

Top Points from Today’s Mortgage Changes Announcement:

Higher Price Cap for Insured Mortgages:

Starting December 15, 2024, homebuyers can purchase properties up to $1.5 million with less than a 20% down payment. This adjustment allows more homes to qualify for insured mortgages, increasing accessibility for buyers.

Down Payment Savings Example – $1.2 Million Home:

Old Requirement (above $1 million):

A 20% down payment was required = $240,000.

New Requirement (under the $1.5 million cap):

5% on the first $500,000 = $25,000

10% on the next $700,000 = $70,000

Total Down Payment: $95,000

This change results in a $145,000 down payment savings for buyers purchasing a $1.2 million home.

Expanded 30-Year Amortization:

More buyers, especially first-time homebuyers and those purchasing new builds, can now access 30-year mortgage amortizations, reducing their monthly payments and making homeownership more affordable.

No Stress Test at Renewal for Insured Mortgage Holders:

Insured mortgage holders can now switch lenders at renewal without needing to pass another stress test. This is a major advantage in today’s higher interest rate environment, enabling borrowers to secure better rates without the fear of requalification.

Reduced Stress at Renewal:

As mortgage rates are currently higher than when many first obtained their loans, the removal of the stress test eases the renewal process, giving homeowners more flexibility to find the best deal and improving competition among lenders.

Additional Financial Tools for First-Time Homebuyers:

Combined with the new First-Time Homebuyers Savings Account and the increased RRSP withdrawal limit (raised from $35,000 to $60,000), these changes give Canadians more tools than ever to access homeownership. This represents the most significant policy shift since 2012.

If you or a loved one have questions on a mortgage please reach out to us directly

Full article from today: https://www.canada.ca/en/department-finance/news/2024/09/government-announces-boldest-mortgage-reforms-in-decades-to-unlock-homeownership-for-more-canadians.html

Have a  great week