30-Year Amortizations and More Government Mortgage Reforms

Let’s face it—owning a home in Canada has been a stretch for many, especially Millennials and Gen Z. The dream of a cozy space to call your own has often felt like a distant goal. But here’s the good news: the Canadian government is shaking things up with some game-changing mortgage reforms.

If you’re wondering how these changes might impact you or your clients, stick around—I’m breaking it all down in plain English.

What’s Changing?

As of August 1, 2024, 30-year amortizations for insured mortgages are now available for first-time buyers purchasing new builds. This means smaller monthly payments and a little more breathing room for your budget.

But the big news? on December 15, 2024, the price cap for insured mortgages jumped from $1 million to $1.5 million. That’s huge for buyers in cities where housing prices are sky-high.

Oh, and there’s more. First-time buyers across the board—and anyone buying a new build—can opt for that 30-year amortization. Translation: more Canadians can finally make that leap into homeownership without drowning in monthly payments.

A Win for Competition

Here’s another win: under the strengthened Canadian Mortgage Charter, insured mortgage holders can switch lenders at renewal without retaking the stress test. This keeps lenders on their toes and ensures you can shop for the best rates when your term is up.

Why Does This Matter?

Whether you’re a first-time buyer, helping your kids buy their first home, or advising clients as a real estate professional, these reforms offer real opportunities. Smaller monthly payments mean more accessible homes, and raising the insured mortgage cap reflects today’s real market prices.

And let’s not forget the indirect benefits. By encouraging new builds, these measures aim to tackle the housing shortage—meaning more options for everyone.

Your Next Steps

If you’ve been dreaming about homeownership or helping your clients get there, now’s the time to take a closer look. These changes could open doors you didn’t think were possible.

Curious how this applies to your situation? Let’s chat. Whether it’s calculating new amortization options or navigating the insured mortgage cap, I’m here to help.

Let’s make 2025 the year that “someday” becomes “today.”