Are you a first-time home buyer purchasing a brand-new home? As of August 1st, you can take advantage of the 30 years amortization & and insured mortgages on new construction.  Yes, that means a 30-year amortization even if your down payment is less than 20%.

This is great news for everyone, especially if you are in living in Ontario or BC cities with a higher cost of living. A longer amortization means you qualify for a higher mortgage and reduce your monthly payments so there is more money in your pocket or in your investments every month.

Key Criteria for 30-Year Amortization

To qualify for the extended 30-year amortization period, which can help you qualify for a larger mortgage and lower your monthly payments, you must meet the following requirements:

First-Time Homebuyer Status

  1. At least one borrower on the mortgage must be a first-time homebuyer.
  2. You have never purchased a home before.
  3. You have not owned or lived in a home as your principal residence in the last four years.
  4. You recently experienced a marriage or common-law partnership breakdown.
  5. New Construction Requirement

The loan must be used to purchase a newly built home. This includes homes that have never been lived in and new condominiums with interim occupancy periods.

Owner Occupancy

The home must be intended for occupancy by the borrower or a close family member (spouse, common-law partner, or legal parent-child) on a rent-free basis.

Down Payment and Loan to Value Ratio

The loan that you are borrowing must be more than 80% of the value of the home. Your down payment must be less than 20% of the purchase price and your mortgage must be insured.

How This Helps You

By opting for a 30-year amortization, you can spread out your mortgage payments over a longer period, reducing your monthly payments and making homeownership more affordable. This can also help you qualify for a higher loan amount, enabling you to purchase the home of your dreams.

Next Steps

If you have purchased a presale and your completion is coming up within the next 5 months, now is the perfect time to explore your options. Get in touch today to discuss your eligibility for a 30-year amortization mortgage and how I can help you secure your dream home with manageable payments.