Big news for homebuyers across Canada! As of December 15th, 2024, new changes to the rules for default-insured mortgages could make a significant difference in your home-buying journey.
Higher Price Cap for Insured Mortgages
The maximum price cap for insured mortgages is increasing from $1 million to $1.5 million—a game-changer for buyers in high-cost markets such as greater Vancouver.
Here’s what you need to know:
Who it affects: Buyers with a down payment of less than 20%, requiring high-ratio mortgage insurance (loan-to-value over 80%).
Eligibility:
- The property must be under $1.5 million.
- Down payment requirements:
- 5% for the first $500,000.
- 10% for the remainder up to $1.5 million.
30-Year Mortgage Amortizations for First-Time Buyers and New Builds
You can now enjoy 30-year amortizations if you’re:
- A first-time homebuyer or
- Purchasing a newly constructed home.
This extension lowers your monthly payments and provides more flexibility.
Who Qualifies as a First-Time Homebuyer?
You’re considered a first-time buyer if:
- You’ve never purchased a home before.
- You haven’t lived in a home you or your spouse owned in the last 4 years.
- You’ve experienced the breakdown of a marriage or common-law partnership.
These changes make it easier to enter the market, lower your monthly payments, and provide more options for homeownership.
if you’ve been pre-approved before, now is the perfect time to revisit your numbers! With the increased price cap and extended amortization period, your borrowing power has likely gone up. This could put your dream home within reach sooner than expected.
📞 Contact me today to review your options and take full advantage of these new mortgage opportunities! Let’s get you one step closer to your new home.
