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New federal mortgage rules designed to make homeownership more affordable for Canadians came into force this week.
The reforms aim to reduce barriers for first-time buyers and younger generations struggling with rising housing costs.
One of the key changes is an increase in the price cap for insured mortgages, now raised from $1 million to $1.5 million. This change lowers the required downpayment for homes within the new limit. For example, purchasing a $1.4 million home will now require up to $165,000 less for a downpayment, making it easier for buyers to secure financing.
The government is also allowing 30-year amortization periods for first-time buyers and those purchasing new builds. This adjustment is expected to lower monthly mortgage payments by hundreds of dollars.
The federal government claims the changes are the boldest mortgage reforms in decades, aimed at restoring the dream of homeownership for Canadians of all generations.
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