Mortgage Rule Changes
November 27, 2024 | Posted by: Sherry Corbitt
If you’re thinking about getting a mortgage in Canada, listen up! Starting December 15th, there are two important changes in the mortgage industry. Here’s a quick rundown to keep you in the know.
High Purchase Price for Insured Mortgages
Good news if you want to purchase for higher than $1,000,000 but don't have 20% down The new guidelines will allow for a down payment of 5% on the 1st $500,000 and 10% for anything over that up to $1,500,000. For example, a down payment on $1,250,000 purchase would be $100,000 (vs as of today that would need to be $250,000).
Amortization up to 30-years for all 1st Time Buyers
The rules are also changing for 1st Time Buyers allowing them to stretch their payments out to 30 year amortization vs 25 years that is the current maximum. This means on a $600,000 mortgage the 25 year amortization payment on 4.50% would be $3453 vs the same mortgage and term would be $3146 on a 30 year amortization. That payment difference of $307 is going to help with household cashflow and affordability.
What Does This Mean for You
We believe that these changes could make the mortgage approval process smoother for many Canadians. It’s a great time to reach out and see how these upcoming changes could help get you into the housing market. December 15th is just around the corner! If you're gearing up to buy a home, now is the perfect time to get your finances in order and prepare for these new changes. Happy house hunting, and best of luck on your homeownership journey! Please reach out to me if you have any questions, I am always here to help with your mortgage needs.
Your Broker for Life,
Sherry Corbitt
