Ambitious New Mortgage Changes

On Monday September 16, 2024 the Government of Canada announced two major changes to 30-Year amortization and insured mortgage purchase price limit, representing a significant shift for the Canadian housing market. The new reforms are aimed at improving housing affordability and mortgage accessibility, allowing buyers to qualify for a higher purchase price with a lower down payment.

The chart below outlines the current rules and the proposed rule changes. You can see the increased purchase price extended the amortization from 25 years to 30 years. Also the minimum down payment for mortgages under $1.5M is much less in addition to the interest rate for mortgages between $1M and $1.5M.

*As of the day of this article, and not confirmed by government bodies, if we are working on the current guidelines, minimum down payment would be 5% on the 1st $500,000 and 10% down payment on anything over $500,000.00.

We are awaiting further information to be announced prior to the December 15th date if the minimum down payment will increase on amounts over $1M and if the mortgage insurers or lenders will premium the rate and insurance premium.

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Please reach out to MMG Mortgages if you have any questions on the new proposed changes.