New Mortgage Measures Announced

Finance Minister Chrystia Freeland introduced changes to ease homeownership. Starting Dec. 15, the insured mortgage cap will increase from $1 million to $1.5 million, allowing buyers to put down less than 20% on homes priced up to $1.5 million. The 30-year mortgage option, previously limited to first-time buyers of newly built homes, is also being expanded to all first-time buyers and purchasers of new builds.

Mixed Reactions from Experts

Experts are divided. RateHub.ca’s Penelope Graham believes the changes will benefit first-time buyers by improving market access. However, economist Marc Desormaux warns this could boost demand, raising prices and potentially worsening affordability over time. Realtor John Pasalis criticized the changes as a temporary fix that stimulates sales but doesn’t solve the housing crisis.

Broader Issues in Housing Affordability

The reforms aim to encourage homebuilding, yet challenges like labor shortages and high construction costs continue to limit new supply. Experts emphasize the need for long-term solutions to address Canada’s housing crisis effectively.