30-year amortizations will be available for all first-time home buyers

by Steven Axford

Today, the federal government announced some of the most impactful changes to mortgage qualification criteria since 2012. As of December 15, 2024, 30-year amortizations will be available for all first-time home buyers, as well as all new construction purchases. The maximum home purchase price for insured mortgages has also been increased to $1.5 million.

Together, these two changes should materially improve affordability for first-time buyers. Here’s how they may impact you:

(Psst: Big News! The lowest five-year fixed rate available in Canada right now is 4.09%, offered exclusively by Ratehub.ca and if your mortgage is coming up for renewal, we have exciting new switch promos you should ask your Ratehub.ca agent about.)

30-year amortizations will lower payments: Spreading your amortization out over a 30-year period compared to 25 will lower the amount you’ll pay on your mortgage on a monthly basis. This helps improve cash flow for borrowers, as well as debt ratios – all of which are helpful when qualifying for a mortgage. Many lenders also offer more competitive mortgage rates to insured borrowers.

Recent Posts