12/21/2024
With 2025 around the corner, here are the new mortgage changes being implemented to assist active mortgage holders and home buyers.
1. An Increase to the Insured Mortgage Price Cap: The government will raise the price cap from $1 million to $1.5 million, to reflect the realities of today’s housing market. Effective December 15, 2024, this change will help more Canadians qualify for insured mortgages.
2. Expanded Eligibility for 30-Year Amortizations: First-time homebuyers and all buyers of new builds will now be eligible for 30-year insured mortgage amortizations. This is a crucial step in reducing monthly mortgage payments and helping more Canadians achieve the dream of owning a home.
3. Increased Mortgage Competition: The strengthened Canadian Mortgage Charter now enables insured mortgage holders to switch lenders at renewal without being subject to another stress test. This will foster greater competition and ensure Canadians have access to the best mortgage deals.
4. Homeowners will be able to access up to 90% of their home’s value through default-insured refinancing, which can be used to fund secondary suites. This is designed to increase the rental supply in high-demand areas while helping homeowners manage rising mortgage costs. Effective January 15 2025.
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