Federal Government Introduces Major Changes to Boost Homeownership Affordability

Federal Government Introduces Major Changes to Boost Homeownership Affordability

Federal Government Introduces Major Changes to Boost Homeownership Affordability

September 16, 2024


The Federal Government has announced significant changes to Canada’s mortgage rules to make homeownership more attainable for Canadians. Deputy Prime Minister and Minister of Finance Chrystia Freeland unveiled new measures today, raising the price cap on insured mortgages and expanding eligibility for 30-year mortgage amortizations. These updates will come into effect on December 15, 2024, and are expected to impact first-time homebuyers and the broader real estate market positively.


Key Changes to Watch For:

  • Higher Price Cap for Insured Mortgages: The price cap for insured mortgages will increase from $1 million to $1.5 million. This means that homebuyers purchasing properties up to $1.5 million will not be required to make a 20% down payment. The change allows more flexibility for those entering the housing market and offers relief to buyers, particularly in high-demand areas where prices have surged in recent years.

  • Expanded Access to 30-year Mortgage Amortizations: Previously available only to a limited group of first-time homebuyers, the 30-year amortization period is now being extended to all first-time homebuyers as well as those purchasing new-build homes. This longer amortization will lower monthly payments, making homeownership more affordable and accessible, especially for those navigating today’s real estate landscape.

What This Means for Homebuyers

These new rules aim to provide Canadians with better access to housing, particularly for first-time buyers and those looking to enter competitive markets like Vancouver and Toronto. The extended 30-year amortization period will offer greater purchasing power, while the higher insured mortgage cap will give buyers more options without needing to increase their down payment drastically.


With mortgage rates on a downward trend, these new rules are set to boost activity in the housing market by giving buyers more flexibility and affordability. As home prices continue to rise in many regions, these federal changes could provide much-needed relief for buyers and support continued growth in the market.


At 8Twelve Mortgage, we are committed to helping Canadians navigate these new changes. Whether you're a first-time buyer, a seasoned homeowner, or a referral partner, our team of mortgage experts is ready to guide you through these updated regulations and ensure you get the best mortgage solution for your needs.




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