New Canadian Mortgage Rules 2024
The Canadian government has introduced new mortgage rules that take effect in December 2024, aimed at making homeownership more accessible.
Key Changes:
Higher Insured Mortgage Cap: The cap for insured mortgages increases from $1 million to $1.5 million, allowing buyers to qualify with less than a 20% down payment for homes up to $1.5 million.
30-Year Amortization: First-time buyers and those purchasing new homes can extend their mortgage payments over 30 years, reducing monthly costs.
Switching Lenders Without Requalifying: Homeowners with insured mortgages can switch lenders at renewal without needing to pass the stress test again, making it easier to get better rates.
Impact on Homebuyers:
Lower Monthly Payments: Extending mortgage terms from 25 to 30 years reduces monthly payments but increases the total interest paid over the life of the loan.
Smaller Down Payments: Buyers can purchase homes up to $1.5 million with lower down payments.
More Competitive Rates: The ability to switch lenders without requalifying can lead to better mortgage rates at renewal.
For more detailed information or assistance, please check out our recent Roundtable YouTube Discussion, blog post on the subject or contact our mortgage experts!
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