2 Big Changes Coming to Canadian Real Estate : Longer Amortization & Higher Price Caps

Dated: September 18 2024

Views: 452

2 BIG CHANGES COMING TO
Canadian Real Estate
Canada's New Mortgage Policy Reforms: Longer Amortization & Higher Price Caps

Description:

The Canadian government is set to introduce key mortgage reforms, effective December 15, 2024, aimed at helping first-time homebuyers and those purchasing new builds. The changes include:

  • Extended Amortization: Insured mortgages will now have a 30-year payback period, up from 25 years.
 
  • Raised Price Cap: The price limit for insured mortgages will increase from $1 million to $1.5 million.


Deputy Prime Minister Chrystia Freeland announced these changes to make homeownership more accessible to young Canadians.

 

Impact on Real Estate Market:

 
  • Lower Monthly Payments: A 30-year mortgage can reduce monthly payments by about $300 on a $650,000 home.
 
  • Higher Interest Costs: Buyers will pay more over time—around $2,000 extra in interest and $20,000 more in outstanding principal compared to a 25-year mortgage.
 
  • Rising Competition: Experts warn that these changes could drive up home prices as more buyers enter the market, increasing demand.
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Hello Nishan, I would like to discuss more on the recent changes in the amendments to the foreign buyer ban.
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Nishan Ahluwalia

"It's not about what you , it's all about how you do it". This is what I truly believed in from Day 1 as a Realtor and since then I have helped 100's of families, with 5 Star Reviews and proudly rated....

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