On December 15, 2024, significant changes to Canada’s mortgage regulations came into effect, aiming to make homeownership more accessible for Canadians. These reforms, announced by Finance Minister Chrystia Freeland, are considered the most substantial in decades and are designed to address the challenges of housing affordability, particularly for younger generations.
Key Changes Effective December 15, 2024:
- Increased Insured Mortgage Cap:
- The maximum price for insured mortgages has been raised from $1 million to $1.5 million.
- This adjustment reflects current housing market realities and allows more Canadians to qualify for a mortgage with a down payment of less than 20%.
- Extended Amortization Periods:
- Eligibility for 30-year mortgage amortizations has been expanded to include all first-time homebuyers and purchasers of new builds.
- Previously, 30-year amortizations were limited to first-time buyers purchasing new constructions.
- This change aims to reduce monthly mortgage payments, making homeownership more attainable.
Additional Measures:
- Facilitating Lender Switching:
- The Canadian Mortgage Charter has been strengthened to allow all insured mortgage holders to switch lenders at renewal without undergoing another mortgage stress test.
- This enhancement promotes competition among lenders, enabling homeowners to secure more favourable terms upon renewal.
- Blueprints for Renters’ and Home Buyers’ Rights:
- The government has released blueprints for a Renters’ Bill of Rights and a Home Buyers’ Bill of Rights.
- These initiatives aim to protect renters from unfair practices, simplify leases, increase price transparency, and make the home-buying process fairer and more transparent.
These reforms are part of the federal government’s ambitious plan to build nearly 4 million new homes, addressing the housing shortage and making homeownership more attainable for Canadians.
As a mortgage broker in Vancouver, I am committed to helping prospective and existing homeowners navigate these new regulations to find the best mortgage solutions tailored to their financial and homeownership goals.