On September 16, 2024, the Canadian government announced the most significant mortgage reforms in decades, aimed at making homeownership more accessible to Canadians, particularly younger generations like Millennials and Gen Z. These reforms include raising the price cap for insured mortgages, extending mortgage amortization periods, and enabling easier lender switching. With a focus on reducing monthly payments and incentivizing new housing construction, the government’s bold plan aligns with its ambitious goal of building 4 million new homes. Alongside these changes, new protections for renters and homebuyers have also been introduced to create a fairer housing market across the country.
Quick facts:
- 30-year insured mortgage amortizations now available for first-time homebuyers of new builds (effective Aug 1, 2024).
- Mortgage price cap increase: from $1 million to $1.5 million (effective Dec 15, 2024), reflecting current housing market trends.
- Expansion of 30-year amortization: to all first-time homebuyers and buyers of new builds, reducing monthly payments and promoting new housing construction.
- Canadian Mortgage Charter: Allows insured mortgage holders to switch lenders at renewal without stress test, increasing competition.
- 4 million new homes: Government’s ambitious plan to build more homes and tackle the housing shortage.
- Renters’ and Home Buyers’ Bill of Rights: New protections for renters and homebuyers, including measures against renovictions, blind bidding, and making sales history accessible.
- Support for down payments: Initiatives like the Tax-Free First Home Savings Account (up to $40,000) and enhanced Home Buyers’ Plan limit ($60,000).
To read more visit HERE!
