A couple of significant changes were announced last week in the mortgage market. The insured mortgage limit is increasing from $1M to $1.5M million, so now when purchasing, borrowers can buy with less than 20% all the way up to a price of 1.5M, where any price point over 1.5M will require 20% down. The other change is that all 1st time homebuyers, plus all buyers of newly built homes purchasing with less than 20% can take a 30 year amortization where they were previously maxed out at a 25 year amortization when buying with less than 20% down. This will act to increase affordability since mortgage payments are smaller with longer amortizations. Based on the current Canadian average home price of $649K, a 30-year amortization would offer roughly $300 per month in payment relief compared to a 25-year amortization. The changes will take effect on December 14th, 2024, with further details to follow. If you or someone you know is a 1st time homebuyer who was unable to enter the housing market due to affordability issues, tell them to call our Mortgage Brokerage, Lotus Loans & Mortgages so we can apply the new rules and hopefully help them become home owners.
Mortgage insurance rule changes
By Lotus Loans & Mortgage|2024-09-23T12:33:52+00:00September 23rd, 2024|Uncategorized|Comments Off on Mortgage insurance rule changes