The federal government unveiled huge changes to Canada’s mortgage system September 16th, 2024 aimed at helping make homeownership more attainable for first-time homebuyers as well as Canadians purchasing newly-built homes.
This is exciting news for homebuyers, effective December 15th, 2024:
- Raising the insured mortgage limit to $1.5 million, which will expand access for Canadians in high-priced housing markets by helping more borrowers qualify for a mortgage with a downpayment below 20%. That’s an increase from the current insured mortgage cap of $1 million set in 2012.
- Expanding access to 30-year amortizations for all first-time homebuyers and all buyers of new builds, including condos, in order to help reduce monthly payments.
More positive news for homeowners and homebuyers
On September 4th, the Bank of Canada announced that it was dropping its key interest rate target by 0.25% to 4.25% – the third consecutive 0.25% rate decrease. For variable-rate mortgage and credit line holders, this rate drop translates to a savings of approximately $15 per 100,000 of outstanding balance.
As well, Canada’s inflation rate landed squarely on the central bank’s 2% target in August – the slowest pace of annual growth in more than three years. This should help ensure rates keep coming down.
Since rates have been decreasing, it’s more important than ever to use a mortgage agent when you’re in the market for a new mortgage or looking to renew/refinance an existing one. This negotiation power can save you a lot of time and money throughout your time as a homeowner.
As an existing homeowner, the market and your financial needs have likely changed since the last time you got a mortgage. It’s your mortgage agent’s job to make sure you’re placed in the right mortgage every time.
Have questions about these new changes or your mortgage in general? Answers are a call or email away!