Under the new mortgage rules, which take effect Dec. 15, the price cap for insured mortgages will be $1.5-million, up from $1-million.PATRICK DOYLE/The Canadian Press
After years of slow home sales, Ottawa announced a change to the federal mortgage rules aimed to make buying a home more attainable for young Canadians.
Starting on Dec. 15, the price cap for insured mortgages will be $1.5-million, up from $1-million. First-time homebuyers will be allowed to take out an insured mortgage with a 30-year amortization for all types of homes. And more buyers will be allowed to take out an insured mortgage with a 30-year amortization on a preconstruction home. Not all investors are eligible.
It’s the first major easing of Canada’s strict mortgage rules in over a decade, and industry experts are saying that the new rules have already attracted droves of potential buyers, interested in finding out if they’re able to save money on a home purchase.
But there’s no one-size-fits-all solution to housing, and how a smaller down payment or lower mortgage installments affect how much you can afford can be difficult to navigate. On Monday, Sept. 23 at noon ET, reporters Rachelle Younglai and Erica Alini will answer your questions about how the new rules could affect Canadians’ plans to buy a home. Are the new mortgage rules exactly what Canadians needed to get into the housing market? Will sales finally start to pick up? What will it do to housing prices?
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Editor’s note: An earlier version of this article incorrectly stated that all homebuyers, including investors, will be eligible to take out an insured mortgage with a 30-year amortization to buy a preconstruction home. Investment purchases of income properties are not eligible. This version has been updated.