New Mortgage Rules a Big Boost for Home Buyers

Toronto and Vancouver. Here are the key changes:

1. Higher Cap for Insured Mortgages: The limit for insured mortgages is being raised from $1 million to $1.5 million. This allows buyers to purchase homes valued up to $1.5 million with a smaller down payment (as low as 5-10% depending on the home price). This change is designed to help more buyers enter high-cost housing markets without needing the full 20% down​

2. 30-Year Amortization for First-Time Buyers and New Builds: First-time home buyers and those purchasing new constructions will have the option of extending their mortgage payments over 30 years, rather than the current standard of 25 years. This reduces monthly payments, making home ownership more accessible, though it also means paying more interest over time​

3. Switching Lenders Without a New Stress Test: Borrowers with insured mortgages will be able to switch lenders at renewal without undergoing another stress test. This increases competition among lenders and could allow homeowners to secure better rates without facing new qualifying hurdles​

These measures are part of the government’s broader strategy to address housing affordability and stimulate the housing market. However, some experts caution that increased buying power could lead to higher home prices, particularly in already competitive markets​

Looking to invest, sell or lease in the GTA? Then lets chat, and contact Michael Kelly today!