On December 15, 2024 changes to Canadian mortgage policies came into effect.
First time home and new build buyers will now be able to extend their mortgage amortization to 30 years on insured mortgages (less than 20% down). This will reduce the cost of monthly mortgage payments, helping more Calgarians buy a home.
First-time homebuyers must meet criteria such as not having owned a home in the last four years or having experienced a breakdown in a marriage or common-law relationship. These reforms apply to all high-ratio mortgages on owner-occupied properties or those occupied by a close relative. The existing eligibility criteria for government-backed mortgage insurance will remain unchanged.
The price cap on ALL insured mortgages (less than 20% down) increased from $1M to $1.5M.
The rules for down payments remain the same:
5% on the first $500,000 of the purchase price
10% on the portion between $500,000 and $1.5 million
For example, buying a $1.5-million home now requires a $125,000 down payment—much less than the $300,000 needed for uninsured mortgages under the old rules.
Jamie Walsh is an experienced and knowledgeable mortgage broker in Calgary. Contact Jamie jamiewalsh.ca to discuss how the new insured mortgage policies affect you and how they can help you get one step closer to owning your dream home.
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